15th November 2011

IHF CONDEMNS PROPOSALS FOR EMPLOYERS TO PAY SICK LEAVE

Proposal is anti-business and detrimental to Hotels & Guesthouses

The Irish Hotels Federation (IHF) today condemned Government proposals to transfer the responsibility for paying sick pay to employers during the first four weeks of illness. Mr Tim Fenn, Chief Executive, IHF stated that the measure mooted by Minister for Social Protection Joan Burton would place a disproportionate and unjustifiable burden on small businesses throughout the economy.

Calling on the Government to abandon plans to impose additional costs on SMEs, Mr Fenn stated, “The proposal is anti-business and detrimental to SMEs, particularly in vulnerable areas of the economy such as the hotels sector. SMEs will be the backbone of any recovery in the economy but only if supported by Government policies that promote cost competitiveness and the creation of employment.”

“From a tourism perspective, the imposition of additional costs by the Department of Social Protection works against other Government initiatives targeted at supporting the industry,” states Mr Fenn. “This will result in a reduction in employment among hotels and guesthouses which are already struggling to achieve viability in a very challenging business environment.”

The hotels sector has experienced a drastic decline in business since 2007 and is struggling to deal with decimated revenues caused by low room rates and excess room capacity. Hotels and guesthouses employ 54,000 people in every county and town across the country. 

ENDS

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