Opinion of the European Central Bank of 28 January 2014 on remuneration for public servants during periods of sick leave (CON/2014/7)
Date: 2014-01-28
Institutions: European Central Bank
Subjects: Ireland, central bank, national law, public service employee, remuneration of work, sick leave

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 28 January 2014 

on remuneration for public servants during periods of sick leave 

(CON/2014/7) 

Introduction and legal basis 

On  6  January  2014,  the  European  Central  Bank  (ECB)  received  a  request  from  the  Irish  Minister  for 

Public  Expenditure  and  Reform  (hereinafter  ‘the  Minister’)  for  an  opinion  on  the  Public  Service 

(Recruitment and Appointments) (Amendment) Bill 2013 (hereinafter the ‘draft law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and the third indent of Article 2(1) of Council Decision 98/415/EC of 

29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft 
legislative provisions1, as the draft law relates to the Central Bank of Ireland (CBI). In accordance with 

the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing 

Council has adopted this opinion. 

1.  

Purpose of the draft law 

1.1  The draft law amends the Public Service Management (Recruitment and Appointments) Act 2004 

(hereinafter  the  ‘2004  Act’).  The  new  Part  7A  of  the  2004  Act  introduces  new  rules  for  the 

remuneration  of  public  servants  during  periods  of  sick  leave.  It  empowers  the  Minister  to  make 

regulations  providing  for  the  payment  of  such  remuneration  to  public  servants,  and  it  contains 

provisions that will be applied by ministerial regulation to certain ‘public service bodies’ as defined 

in the draft law. The CBI is not excluded from the definition of ‘public service bodies’ contained in 

the draft law. 

1.2  The new Part 6A of the 2004 Act concerning the redeployment of public servants is also inserted 

by the draft law. The CBI’s staff are explicitly excluded from its provisions. 

2.   Appropriate time to consult the ECB 

2.1   The ECB received the consultation request on 6 January 2014. The ECB notes that the draft law 

has  already  progressed  through  the  legislative  procedure  in  the  Irish  Parliament  and  no  further 

amendments are possible prior to enactment. 

1  

OJ L 189, 3.7.1998, p. 42. 

 
 
 
 
 
                                                 
ECB-PUBLIC 

2.2   The  ECB  reminds  the  Minister  that  national  authorities  are  obliged  to  consult  the  ECB  on  draft 

legislative provisions within its field of competence. Article 4 of Decision 98/415/EC provides that 

the ECB must be consulted ‘at an appropriate stage’ in the legislative process. It follows from this 

that  the  consultation  should  take  place  at  a  point  in  the  legislative  process  that  affords  the  ECB 

sufficient  time  to  examine  the  draft  legislative  provisions  and  adopt  its  opinion.  Pursuant  to  the 

wording of Article 3(4) of Decision 98/415/EC, Member States are obliged to suspend the process 

for  adoption  of  the  draft  legislative  provisions  pending  receipt  of  the  ECB’s  opinion  in  order  to 

allow  the  relevant  national  authorities  to  meaningfully  deliberate  the  ECB’s  opinion  prior  to 

adoption of the provisions in question. The ECB would appreciate it if the Minister would comply 

in future with the obligation to consult the ECB in due time so as to allow sufficient time for its 

views to be taken into account in accordance with Decision 98/415/EC. 

3. 

General observations 

As  noted  in  paragraph  1.2  above,  the  CBI’s  staff  are  explicitly  excluded  from  the  new  provisions 

concerning the redeployment of public servants, but not from the scope of the new Part 7A of the 2004 

Act,  on  remuneration  during  periods  of  sick  leave.  As  the  new  Part  7A  could  therefore  apply  to  and 

directly  affect  the  CBI’s  decision-making  bodies  and  its  employees,  it  should  be  examined  from  the 

perspective of central bank independence, in particular institutional and financial independence, as well as 

that of the personal independence of the members of the CBI’s decision-making bodies. 

4. 

Central bank independence 

4.1  Member States may not interfere with a national central bank’s (NCB) ability to employ and retain 

the qualified staff  necessary for the NCB to perform independently the tasks conferred on it by the 

Treaty and the Statute of the European System of Central Banks and of the European Central Bank. 

To  protect  the  NCB’s  autonomy  in  staff  matters,  the  ECB  has  consistently  recommended  in 

previous  opinions  and  in  its  convergence  reports  that  any  amendment  to  legislation  on 

remuneration  for  members  of  an  NCB’s  decision-making  bodies  and  its  employees  should  be 

decided  in  close  and  effective  cooperation  with  the  NCB  concerned,  taking  due  account  of  its 
views, to ensure the ongoing ability of that NCB to independently carry out its tasks2. 

4.2  Given  that  the  CBI’s  employees  are  employed  under  the  conditions  (including  conditions  as  to 
remuneration and allowances) set by the Central Bank Commission3, in order to protect the CBI’s 

autonomy  in  staff  matters,  legislative  provisions  affecting  the  remuneration  of  members  of  the 

CBI’s  decision-making  bodies  and  its  employees  should  be  decided  in  close  and  effective 

cooperation with the CBI, taking due account of its views, to ensure the ongoing ability of the CBI 

to independently carry out its tasks. Since the new Part 7A of the 2004 Act concerns remuneration 

2  
3  

See the ECB’s Convergence Report 2013, p. 27 and the reference to ECB opinions made there. 
See  section  6D  of  the  Central  Bank  of  Ireland  Act  1942,  as  inserted  by  section  7  of  the  Central  Bank  and  Financial 
Services Authority of Ireland Act 2003 and as amended. 

2 

 
 
                                                 
ECB-PUBLIC 

of public servants during periods of sick leave, it constitutes such a legislative provision that would 
affect the remuneration of members of the CBI’s decision-making bodies and its employees4. The 

ECB welcomes the fact that the Minister in the consultation letter to the ECB undertakes to consult 

with the Governor of the CBI and expects that the Minister will take due account of the Governor’s 

views in this matter. 

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 28 January 2014. 

[signed] 

The President of the ECB 

Mario DRAGHI 

4  

See  paragraph  2.6  of  Opinion  CON/2013/41  and  the  ECB’s  Convergence  Report  2013,  p.  27.  All  ECB  opinions  are 
published on the ECB’s website at www.ecb.europa.eu. 

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