Given the constant change in employment law in Ireland, which impacts all employers doing business in this jurisdiction, employers managing a workforce in Ireland are well advised to keep apprised of the key issues on the legislative agenda. In some cases, these initiatives will be driven from Europe on foot of Directives, while others evolve at a national level.
There was very little movement from a legislative perspective in late 2024 due to a November 2024 election. Following the formation of a new government in January 2025, we are now getting an indication of the employment law issues that are likely to be prioritised by the government.
We have highlighted some of the changes that have come into effect and anticipated changes below:
Statutory Sick Pay
Statutory sick pay was expected to increase from 5 days to 7 days in 2025. Initial media reporting suggested that no increase would occur in 2025. After a significant delay the Department of Enterprise, Trade and Employment confirmed on 8 April 2025 that the increase would be paused after completing research by the Irish Government Economic and Evaluation Service and the Department of Enterprise, Trade and Employment determined it would have a detrimental impact on firms in the retail, accommodation and food services sectors. Given the continued costs pressure on employers in Ireland, it remains to be seen if the payment will be increased in 2026.
Pension auto-enrolment
The commencement date for auto enrolment has now been pushed into January 2026. The new State pension scheme will be operated by a new state agency (NAERSA). An employee will be enrolled in the scheme if they are between the ages of 23-60 and earn over €20,000 per year, unless the employee is already participating in a qualifying pension scheme. There is no service requirement for auto-enrolment. Both employers and employees will be legally obliged under the Automatic Enrolment Retirement Savings System Act 2024 to make contributions of a specific amount to the retirement savings scheme, with employees having the option to opt out after 6 months.
Programme for Government
The Programme for Government 2025, Securing Ireland’s Future outlines Government’s employment law objectives such as improving collective bargaining practices, ensuring fair wages whilst supporting enterprises, supporting the Workplace Relations Commission and the Labour Court, developing a Code of Practice to support the hiring of workers with a disability and ensuring employers make reasonable accommodation for disabled employees and promoting flexible working arrangements that benefit both workers and employers.
Government Legislation Programme Spring 2025
The Government Legislation Programme Spring 2025 includes the following bills which are likely to impact employers to include the following:
- The Remuneration Information and Pay Transparency Bill which will transpose aspects of the EU Pay Transparency Directive, and
- The Registration of Trade Unions Bill which will modernise and consolidate the legislation regarding the registration requirements for trade unions
Several employment bills are being prioritised to include The Equality and Family Leave (Miscellaneous Provisions) Bill, which allows for amendments to the Employment Equality and Equal Status Acts arising from a review of equality legislation and would also be used to provide for surrogacy leave and leave for pregnancy loss and the Employment (Contractual Retirement Ages) Bill which will allow but not compel an employee to stay in employment until the State Pension Age (which is currently 66). The Protection of Employees (Employers’ Insolvency) (Amendment) Bill is also being prioritised for publication. This bill is intended to update the legislation governing the protection of employees during their employer’s insolvency to improve the current Act’s operation.
Key dates under the EU AI Act
Employers should also be aware of certain key dates for implementation of the EU AI Act as follows:
- 2 February 2025: Ban on AI systems with unacceptable risks and implementation of AI literacy requirements
- 2 May 2025: Codes of Practice should issue from the EU Commission
- 2 August 2026: End of 24-month transition period obligations for high-risk AI systems come into effect and rules on AI transparency
- 2 August 2027: Obligations for high-risk AI systems as safety components come into effect and entire EU AI Act becomes fully applicable
The EU AI Act will have a direct impact on HR processes which use AI tools, which have been defined as high risk to include recruitment and selection, performance management and training and development.
Corporate Sustainability Reporting Directive
The Corporate Sustainability Reporting Directive ("CSRD") which was transposed into Irish law triggers reporting obligations from 1 January 2025 for "large companies" as defined by the Directive. This also includes the obligation for the directors of the company to provide information to and consult with employee representatives at the appropriate level in relation to the sustainability information and the means of obtaining and verifying such information.
Equality (Miscellaneous Provisions) Bill 2025
The Government has published the Equality (Miscellaneous Provisions) Bill 2025 which proposes to make significant changes. These include enforcing certain pay transparency obligations such as providing information about salary levels at recruitment stage and ensuring applicants are not asked to disclose their current or former salary. Other provisions include extending time to submit complaints under equality legislation, increasing compensation under the Equal Status Act and bringing licensed premises back under the jurisdiction of the WRC for equal status claims. This legislation is at very early stages and remains to be seen what will remain in the Act when it comes into force.
Pregnancy Loss (Miscellaneous Provisions) Bill 2025
The Government has published the Pregnancy Loss (Miscellaneous Provisions) Bill 2025
which provides for a period of paid leave consequent upon the loss of a pregnancy and extends protection against unfair dismissals. Again, this bill is at early stages and may change before it comes into force as legislation.
