Following the formation of a new government in January 2025, we are now getting a clearer indication of the employment law issues that will be prioritised by the incoming government.
We have highlighted some of those anticipated changes below:
Statutory Sick Pay
Statutory sick pay was expected to increase from 5 days to 7 days in 2025. Despite media reporting that no increase would occur in 2025 the Department of Enterprise, Trade and Employment confirmed on 31 January 2025, no decision has been made in that regard. Regulations would need to issue to implement this change.
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:
- The Pay Transparency Bill which will transpose aspects of the EU Pay Transparency Directive
- The Registration of Trade Unions Bill which will modernise and consolidate the legislation regarding the registration requirements for trade unions
A number of employment bills have also been earmarked for priority drafting 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. The Employment (Contractual Retirement Ages) Bill has also been earmarked for priority drafting. This bill would 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 will also be 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 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.
Corporate Sustainability Reporting Directive
The Corporate Sustainability Reporting Directive ("CSRD") which was transposed into Irish law triggered 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 2024
The Government has published the heads of Bill for the Equality (Miscellaneous Provisions) Bill 2024 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.
Gender Pay Gap Reporting Portal
On 8 March 2025, Minister Norma Foley announced that the long awaited gender pay reporting portal for public and private sector organisations would be launched in Autumn 2025. When the portal is active companies will be obliged to upload their gender pay gap reports to the portal rather than their website. On foot of changes made by the Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2024 all companies with more than 50 employees will be required to report for the first time in 2025.
