The WRC found that an employee’s claim for unpaid sick pay against their employer was not well founded as the sick pay scheme was discretionary and no unlawful deduction of wages occurred.

The Complainant began working for the Respondent as a Site Supervisor/Warehouse Operative in April 2022, earning €673 gross per week for approximately 40 hours. She alleged that she was not paid for one week of sick leave in October 2024, breaching the Payment of Wages Act 1991. She relied on her contract, which states employees are entitled to 10 paid sick days per year, and argued that this was a contractual right not subject to discretion. She claimed she had always understood the 10 days were automatically payable with a GP letter and had never experienced case-by-case decisions. She submitted the required sick cert and completed a return-to-work form but was not paid. The Respondent had previously paid her for five sick days in March 2024. She acknowledged she had been placed on a performance improvement plan. During cross-examination, she confirmed she reviewed and understood her contract at the time of signing.

The Respondent denied the Complainant’s claim in full, arguing that sick pay is discretionary and was properly refused in this instance. Head of Solutions gave evidence that all sick leave applications are reviewed individually by the General Manager and Director, and discretion is exercised based on factors such as attendance history and conduct. He confirmed that the Complainant’s application was refused due to her being placed on a performance improvement plan and prior absenteeism. He noted that no employee is automatically entitled to paid sick leave and that the Complainant’s case was not unique in terms of discretion being exercised. In cross-examination, he accepted that he was not the decision-maker and acknowledged that offering ten paid sick days exceeded the statutory minimum. He also confirmed that the Respondent retained discretion even within the ten-day period.

The Adjudicating Officer considered the complaint under the Payment of Wages Act 1991, which prohibits unlawful deductions from wages and defines “wages” to include sick pay where contractually due. The Complainant claimed unpaid sick leave for five days in October 2024, asserting entitlement under her contract. The Respondent argued that sick pay was discretionary. The Adjudicator examined the employment contract, which provided that up to ten paid sick days per year were allowed at the discretion of the company, and additional days at the manager’s discretion. The Complainant had already received five paid sick days earlier that year. Relying on Marek Balans v Tesco Ireland Ltd, the Adjudicator found there was no contractual entitlement to further paid leave and thus no “properly payable” wages were withheld. Accordingly, no unlawful deduction occurred. The complaint was held not to be well founded.

Employers should ensure that employment contracts clearly state whether sick pay is discretionary or contractual, and under what conditions it applies. Note that under the Sick Leave Act 2022, employees are entitled to statutory sick pay once they have completed 13 weeks of continuous service and provide a medical certificate from day one of absence. This entitlement is five days per year, paid at 70% of the employee’s gross daily pay, capped at €110 per day. The government decided in April 2025 not to increase days, in response to concerns about business costs, so the entitlement will remain at five days for the foreseeable future. Employers may operate their own occupational sick pay schemes, but these must be at least as favourable overall as the statutory scheme. Employers must also retain sick pay records for four years and may apply to the Labour Court for a temporary exemption if statutory compliance would cause financial difficulty.

The full case can be found here.