Employers have warned that any move by the Government to make them responsible for paying the first four weeks of sick or disability pay for staff would cost them at least €50 million.
In an analysis submitted to the Government the employers body Ibec argued that such a move would damage the capacity to sustain and create jobs.
It said that any move to transfer “what were in effect social welfare costs” supporting those out of work onto employers could force many to lay off staff, make cuts in pay or working hours as well as reduce allowances or benefits.
The Irish Times reported last week that the Minister for Social Protection Joan Burton had drawn up proposals to make employers pay the first four weeks of their staff's sick pay as part of a move aimed at generating savings of €150 million.
Separately, Minister for Enterprise and Jobs Richard Bruton has commissioned his own report from Forfas on the impact such proposals would have on competitiveness and employment.
Ibec said that with 290,000 new claims annually it seemed reasonable that the cost of the measure must be in the region of €50 million for the first week. Data is only available on numbers claiming for the first week of illness and it is not known how many continue to claim for subsequent weeks.
“This new cost will be seen as a tax on jobs and will have most effect on smaller, more vulnerable employers, generally operating in low-margin businesses - typically those employers operating in the domestic economy and in the services sector who are already worst affected by the economic crisis.”
Ibec also said the proposals would also involve a major change in employment law and would force all employers to reassess their sick pay policies. It said employers, who already provided sick pay schemes could decide that the new State minimum requirement for sick pay should replace their existing schemes.
Ibec also disputed that the proposals would result in any reduction in absenteeism or long-term illness rates.