Concerns over government’s sick pay scheme after software developers issue warning

Employers fear the rollout of the government’s new sick pay scheme could be a ‘mess’ after software developers warned they could not support it.

Group representing developers, Tánaiste told Leo Varadkar that employers have to administer the program themselves.

In a letter to Mr Varadkar, the Payroll Software Developers Association (PSDA) accused his department of “resistance and reluctance”.

The September 20 letter from Association Chair Darren Brennan reads: “The Payroll Software Developers Association regrets to inform you that due to the Department for Enterprise, Trade and Employment’s failure to comply with the PSDA in will not be able to provide software solutions to employers in support of the announced introduction of statutory sick pay for January 2023.”

The sick pay system is scheduled to come into effect in January.

This means that all workers are initially entitled to three days’ sick leave, paid for by their employer.

It will be worth 70 percent of their wages, up to 110 euros a day.

The developer group’s letter says members have “continuously” emphasized the need for engagement and discussion about the program.

“Despite these attempts, we have consistently encountered resistance and reluctance to engage in any meaningful discussion about the proposed implementation of the program,” it said.

“Therefore, we have no choice but to recommend to employers using our membership services that they must manually manage the operation of the statutory sick pay system from January 2023 in order to be compliant.

“However, the lack of available guidance means employers also don’t know how to manually manage the system. We expect that you will receive further information from the employers’ representatives in the coming weeks.”

The association said it has partnered with many state agencies over the past 15 years to ensure the successful introduction of legislation, including the temporary wage subsidy scheme, during the pandemic.

Vincent Jennings, executive director of the Convenience Stores and Newsagents Association, said most members outsource their payroll function and were unfamiliar with the nuances of the legislation.

“We are very concerned that this has not been resolved,” he said.

“My concern is whether we will move to a manual system instead of an automated system.

“Many of our members lost that expertise because they outsourced their payroll for years.” Concerns over government’s sick pay scheme after software developers issue warning

Fry Electronics Team

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