EMPLOYER SPOTLIGHT, END OF THE YEAR WRAP-UP: IRELAND’S EMPLOYMENT LANDSCAPE IN 2024 AND BEYOND
With December upon us, it is the perfect time to reflect on a year of significant changes in employment law. But what lies ahead for 2025? This article takes a look back at the key legislative developments and changes that we saw in 2024 and delves into upcoming changes in 2025.
JANUARY 2024
Sick Leave Act 2022
The Sick Leave Act 2022 (the “2022 Act”) was introduced on a phased basis, with the entitlement starting in 2023, at three days. As of January 2024, this has increased to five days.
As discussed in our pervious article “Employment Spotlight: Statutory Sick Pay – 18 Months Later” , employees are entitled to statutory sick pay (SSP) at a rate of 70% of their wages, subject to a daily cap of €110. This cap may be adjusted in the future to account for changes in income and inflation. The entitlement applies to employees who have at least 13 weeks of continuous service.
Sick leave can be taken from the first day of absence, and it does not need to be taken consecutively. To qualify for SSP, employees must provide a medical certificate from a registered practitioner for each day of absence. Employers with existing sick leave schemes that offer benefits equal to or greater than those required by the Act are exempt from the provisions of the 2022 Act.
Non-compliance with the 2022 Act can result in significant consequences, including a fine of up to €2,500. Additionally, employees may file a complaint with the Workplace Relations Commission, which could lead to a claim involving up to four weeks of remuneration. To mitigate risks and fulfil legal obligations, employers are required to retain records for at least four years, detailing the length of employment, the number of SSP days availed, and the applicable SSP rate.
Increase of National Minimum Wage
In 2022, the Government announced the introduction of a national living wage, which will be phased in over four years, with full implementation by 2026.
As of the 1 January 2024, the national minimum wage saw an increase as follow:-
| Age | Amount |
| Under 18 | €8.89 |
| 18 years old | €10.16 |
| 19 years old | €11.43 |
| National Minimum Wage (20+) | €12.70 |
Further, in 2024 we saw the establishment of statutory minimum rates of pay for specific sectors:-
S.I. No. 296/2024 – Employment Regulation (Amendment) Order (Early Years’ Service Joint Labour Committee) Order No. 1 2024 and S.I. No. 297/2024 – Employment Regulation (Amendment) Order (Early Years’ Service Joint Labour Committee) Order No. 2 2024.
Two new Employment Regulation Orders (EROs) have been introduced for the Early Years’ Service. These Orders establish the statutory minimum rates of pay and outline other employment conditions for workers in the Early Learning and Childcare sector. The changes took effect from 24 June 2024.
S.I. No. 319/2024 – Employment Regulation Order (Security Industry Joint Labour Committee) 2024
This Order sets the statutory minimum rates of pay and specifies the employment conditions for workers in the Security Industry, effective from 1 July 2024.
This Order fixes the statutory minimum rates of remuneration and other conditions of employment for workers in the contract cleaning workforce, with effect from 1 June 2024.
Gender Pay Gap Reporting
The Gender Pay Gap Information Act 2021 (“2021 Act”) came into force on the 31 May 2022. The 2021 Act amended the Employment Equality Act 1998, which mandated certain employers to publish information relating to the remuneration of their employees by reference of their gender, to highlight any gender pay gaps and their extent.
The Gender Pay Gap (GPG) reporting requirements initially applied to public and private organisations with 250 or more employees based on the snapshot dates in 2022 and 2023. In 2024, these requirements were extended to cover organisations with 150 or more employees.
For more information on GPG in the Workplace, we would advise to check out our latest article on this issue. The article examines a recent case from the Workplace Relations Commission (“WRC“) which highlight essential steps employers should take to prevent practices that could result in unequal pay claims and ensure compliance with equal pay laws.
Employment Permit Changes
The start of 2024 marked significant changes to the Irish Employment Permit system. In late December 2023, the Irish Government announced an expansion of the system, which came into effect on the 17 January 2024.
The updated regulations have increased the minimum annual and hourly remuneration thresholds for most new employment permits. For example, the minimum salary for General Employment Permit applications has risen from €30,000 to €34,000, while the threshold for Critical Skills Employment Permits has increased from €32,000 to €38,000. In addition, eleven new occupations have been added to the Critical Skills Occupations List, and thirty-two occupations have been removed from the Ineligible Occupations List, making those occupations now eligible for an employment permit.
In addition to the above changes, a roadmap was announced which will result in the threshold for certain employment permits to be increase again in January 2025.
On the 9 December 2024 an announcement was made, that the proposed Minimum Annual Remuneration increase for employment permits, originally scheduled for January 2025, has been postponed pending the outcome of an ongoing review. The department acknowledges the rising costs of doing business in recent times and aims to ensure that future increases are implemented in a way that provides stability for both employers and permit holders.
Accordingly, to accommodate the findings of the review and allow employers adequate time to incorporate any changes into their business planning, the January 2025 increase has been deferred.
The Workplace Relations Act 2025 (Fixed Payment Notice) Regulations 2023
Employers are subject to inspections by the Workplace Relations Commission (WRC), which has the authority to impose on-the-spot fines for breaches of employment law. A significant development in this area occurred at the beginning of 2024.
On the 12 January 2024, the Workplace Relations Act 2015 (Fixed Payment Notice) Regulations 2023 were published. These regulations consolidate both new and existing fixed payment notices for employment law offences and outline the format of such notices to be issued by WRC inspectors. Fines are imposed on a per-breach basis, meaning larger employers could face substantial penalties if multiple violations are identified.
MARCH 2024
Code of Practise of Right to Request Remote & Flexible working
The right to request flexible and remote working came into effect with the implementation of the Work Life Balance and Miscellaneous Provisions Act 2023.
The anticipated Code of Practice for Employers and Employees on the Right to Request Flexible Working and Remote Working (the Code) was published on 7 March 2024, bringing the rights to request flexible and remote working finally into effect. While not legally binding, the Code is admissible as evidence in legal proceedings and provides practical advice for managing such requests.
The Flexible Working provisions allow employees caring for dependents to request adjusted hours, remote work, or reduced schedules, provided they have six months of continuous service and caregiving responsibilities. Similarly, the Remote Working provisions allows employees with six months of service request to work from a location other than the employer’s premises, with unchanged duties and hours.
Employees must submit written requests at least eight weeks before the start date, detailing the arrangement and reasons. Employers must respond within four weeks by approving, refusing with reasons, or extending the decision by up to eight weeks. Employers must maintain records of approved and refused requests, avoid penalizing employees for making requests, and ensure compliance with health, safety, and working time laws.
MAY 2024
Revenue Updated Guidance on Employment Status
In October 2023, the Supreme Court in Revenue Commissioners v Karshan (Midlands) Ltd t/a Domino’s Pizza [2023] IESC 24 clarified the distinction between employees and self-employed independent contractors for taxation purposes. The Court overturned the Court of Appeal’s decision, ruling that delivery drivers were correctly classified as employees, not independent contractors, by Revenue.
Following this judgment, in May 2024, the Revenue issued Guidelines for Determining Employment Status for Taxation Purposes, which provide clarity on tax implications. These Guidelines outline a five-step framework for determining employment status, focusing on the work/wage bargain, personal service, control, all circumstances of the employment, and the legislative context. The Guidelines are designed to help employers understand the impact of the judgment and include practical examples to illustrate the decision-making process.
In October 2024, Revenue published an update of the Code of Practise on Determining Employment Status (the “Code”). Following the 2023 Supreme Court judgment in the Karshan case, the Code was reviewed and updated by an interdepartmental group, including the Department of Social Protection, the Office of the Revenue Commissioners, and the Workplace Relations Commission. The Code has been reviewed and designed to assist employers, employees, independent contractors, and professionals in HR, legal, and financial sectors, as well as decision-makers in government bodies like the Department of Social Protection, Revenue, the WRC, and the courts.
AUGUST 2024
Parents Leave and Benefit Increased To 9 Weeks
As part of Budget 2024, it was announced that Parent’s Leave and Parent’s Benefit will be extended from seven to nine weeks. This became effective in August 2024.
Parent’s Leave is available to any ‘relevant parent” and it applies to children born or adopted on or after the 1 of November 2019.
Each parent is entitled to Parent’s Leave, with no minimum service requirement. The leave can be taken as a single continuous block or split into two separate blocks of at least one week each and must be used within the first two years of the child’s birth or adoption. While employers are not required to pay employees during Parent’s Leave, eligible employees with sufficient PRSI contributions may receive the State Parent’s Benefit.
SEPTEMBER 2024
Employment Permits Act 2024
The Employment Permit Act 2024, which came into effect on the 2 September 2024, consolidates all previous employment permit legislation and introduces significant updates to Ireland’s employment permit system.
Key changes include a revised Labour Market Needs Test requiring job advertisements to be posted online, along with enhanced flexibility for holders of Critical Skills Employment Permits (CSEP) and General Employment Permits (GEP) to change employers after nine months, subject to specific conditions. Permit holders can now progress within their roles without needing to reapply for a new permit.
The 2024 Act also introduces new permits such as seasonal employment permits and dependant employment permit. Additionally, agencies can now directly pay permit holders, enhancing flexibility for clients and subcontractors utilizing the Contract for Service Permit. Other updates include streamlined processes for handling incomplete applications and adjustments to the 50:50 rule, providing greater support for business growth and expansion.
The Department of Enterprise, Trade, and Employment (“DETE”) has published an informative note outlining the key changes brought by the Act, which is available via the DETE website. The DETE have also indicated that further announcements and guidance materials, including checklists, will be released to keep employment permit users informed about the revised legislation.
A recent ruling by the WRC has brought clarity to the application of employment permit regulations. For a detailed analysis of the ruling, we invite you to read our full article on this matter.
NOVEMBER 2024
Maternity Protection, Employment Equality and Preservation of Certain Records Act 2024
As discussed in our previous article ‘Employer Spotlight: Proposed changes to Maternity Leave and the use of Non-Disclosure Agreements’, two important changes have been discussed this year on foot of the Maternity Protection (Amendment) and Miscellaneous Provisions Bill 2024 (the “2024 Bill”).
On 28 October 2024, the President of Ireland signed the Maternity Protection, Employment Equality and Preservation of Certain Records Act 2024 into law. A commencement order needs to be published before all provisions of the Act will take effect.
The Act amends key pieces of legislation, including the Maternity Protection Act 1994, the Employment Equality Act 1998, and the Social Welfare Consolidation Act 2005. It addresses two primary areas: the postponement of maternity leave and the regulation of Non-Disclosure Agreements (NDAs).
Under the Act, employees with serious health conditions can now postpone their maternity leave for a period of 5 to 52 weeks, provided they submit a medical certificate. This provision applies only to employees facing health conditions that require ongoing treatment. Additionally, the Act introduces new regulations surrounding NDAs, particularly in cases of discriminatory harassment, sexual harassment, or victimisation. Employers are prohibited from using NDAs to prevent employees from disclosing such allegations. However, NDAs may still be permissible in specific situations, such as when the employee requests one and has received independent legal advice regarding its terms.
UPCOMING CHANGES IN 2025
Automatic Enrolment Retirement Savings System Act 2024
In October 2024, Budget 2025 confirmed that auto-enrolment will begin in September 2025.
The Automatic Enrolment Retirement Savings System Act 2024 (AE Act), signed into law on 9 July 2024, introduces a new state-sponsored retirement savings system in Ireland called “My Future Fund.” This system is designed to enhance retirement savings for employees by automatically enrolling them in a pension scheme. The system will be operated by the National Automatic Enrolment Retirement Savings Authority (NAERSA).
NAERSA is set to be established by 31 March 2025, and the AE system will be officially launched by 30 September 2025.
The system applies to employees who meet certain eligibility criteria. Employee must be between the ages of 23 and 60, have gross pay exceeding €20,000 across all employments, and not be currently part of an existing pension scheme.
Regarding contributions, the system outlines a structured approach over several years:
| Years | Employee | Employer | State | Total |
| 1 – 3 | 1.5% | 1.5% | 0.5% | 3.5% |
| 4 – 6 | 3% | 3% | 1% | 7% |
| 7 – 9 | 4.5% | 4.5% | 1.5% | 10.5% |
| 10 + | 6% | 6% | 2% | 14% |
Employees have the option to opt out after a six-month period, with a two-month window (months 7 and 8) in which they can exercise this right. If an employee opts out, they will be automatically re-enrolled after two years, with a new six-month minimum membership period.
While there is no statutory waiting period for enrolment, employers can claim tax relief on their contributions to the AE scheme. Employee contributions, however, are not eligible for tax relief, although the state’s top-up is equivalent to 25% tax relief.
It’s important to note that the auto-enrolment system will not replace the State Pension. Instead, it is designed to supplement the State Pension by encouraging workers to save more for their retirement. Employers who fail to comply with the AE Act may face criminal penalties, including fines ranging from €5,000 to €25,000 and potential imprisonment, depending on the severity of the breach.
General Scheme Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024
The General Scheme of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024 has been published, which introduces measures allowing employees to choose when to retire without being forced to leave before they can access the State Pension, currently set at age 66.
The drafting of the Bill is expected in 2025. The legislation will allow, but not require, employees to remain in their jobs until they reach the State Pension Age. If an employee does not consent to retire at this age, the contract will automatically adjust the mandatory retirement age to the pensionable age, or a mutually agreed age between the Mandatory Retirement Age and the pensionable age.
Gender Pay Gap
Currently, employers with 150 or more employees are legally required to report on gender pay gaps (GPG). Starting in 2025, this requirement will expand to include organisations with 50 or more employees. These employers will continue to disclose their GPG data, explain the reasons behind any disparities, and outline any steps being taken or planned to address them.
Sick Leave Act 2022
Currently, the statutory leave entitlement is of 5 days. 2025 will see an increase of the days from 5 to 7 days.
Minimum Wage
From 1 January 2025, the following rates apply:
| Age | Amount |
| Under 18 | €9.45 |
| 18 years old | €10.80 |
| 19 years old | €12.15 |
| National Minimum Wage (20+) | €13.50 |
This article was co-written by Robin Hyde (Partner) and Gloria Malandra (Trainee Solicitor)
