Employers groups have voiced fury at Department of Social Protection proposals to make employers pay the first month of sick pay for employees.
A spokesperson for the Department said that while the proposal was "in the mix" for the Budget along with other measures aimed at securing savings, no decisions had yet been taken.
However, IBEC warned that any move to put additional costs for sick leave pay onto employers would put struggling firms out of business, cost jobs, and force many companies to cut pay and benefits.
It said taxpayers and business already made significant PRSI contributions to cover the cost of sick leave.
They pointed out that even under the existing system, absence levels cost Irish business €1.5bn per annum.
IBEC Director Brendan McGinty described the proposal as an extra tax on employment at a time when jobs should be the priority - and said it would force employers to re-assess their sick pay policies.
ISME described the proposal as daft and "another kick in the teeth for small business".
Chief Executive Mark Fielding accused the Government of having a death wish for the small business sector.
He urged the Government to tackle the huge level of absenteeism in the public sector before further penalising business.
RGDATA, which represents 4,000 family owned shops and supermarkets employing 90,000 people, said the move would be the final straw for some - putting them out of business and their staff out of jobs.
Chambers Ireland Deputy Chief Executive Sean Murphy said the proposal ran contrary to Government rhetoric about supporting business - and especially smaller businesses focused on the domestic economy.
