2024 was a very busy year for employment law with significant changes introduced through legislation and case law particularly in the areas of leave, flexible working, employment status and retirement. So far it seems that 2025 is going to continue where 2024 left off with lots of interesting developments expected.
In this article we look at some key changes that employers and HR advisors should be aware of over the next 12 months.
Sick Leave Act 2022
Statutory sick leave was introduced into Irish law in 2023. Under this Act it was intended that an employee's entitlement to sick leave would increase from 3 days in 2023 to 10 days in 2026. Employees were entitled to 5 days statutory sick leave in 2024 and this was due to increase to 7 days in 2025. However, the Government has decided to postpone this increase for 2025. This means that employees in Ireland continue to be entitled to 5 days statutory leave for the time being. The rate of statutory sick leave is paid at 70% of an employee's normal salary capped at €110.00 per day.
Maternity Protection, Employment Equality and Preservation of Certain Records Act 2024
This Act came into force in November 2024 and introduced significant changes in the area of maternity leave but also in relation to the settlement of discrimination claims.
Employees who become seriously ill while on maternity leave and require treatment are now able to postpone taking all or part of their maternity leave for 5 to 52 weeks. Employees who need to postpone maternity leave must give two weeks' notice and provide a medical certificate.
This Act also introduced significant changes to the use of non-disclosure agreements or clauses (NDA's) in settlement agreements for discrimination cases. The Act restricts the use of NDAs in relation to 'allegations' or 'any action taken' by an employee relating to discrimination, harassment, sexual harassment or victimisation claims. This change means that employers can no longer prevent employees discussing their claim or the settlement of their claim in discrimination cases. However, there are some limited exceptions to this prohibition. NDA's can be included in settlement agreements for discrimination claims which settled through the Workplace Relations Commission's mediation service. There is also an exemption for the inclusion of NDAs in specific settlement agreements, provided specific criteria are met. Criteria includes a requirement that the NDA is on the request of the employee, the NDA is clear and easy to understand, the employee receives independent legal advice on the inclusion of the NDA and the NDA does not prevent disclosure to certain individuals such as the Gardai. This change means that any settlement of discrimination claims will need to be carefully considered by employers and their legal advisors.
Sectoral Employment Order (Construction Sector) 2024
This will come into effect on 1 August 2025 to reflect higher rates of pay for craft and general constructions workers. Pay will increase by 3.4% in August 2025 and again by 3.2% in August 2026. The details of this Sectoral Employment Order have been discussed by our colleagues here.
The Automatic Enrolment Retirement Savings Systems Act 2024
One of the most significant and long-awaited changes affecting employment and pension rights is due to come into law on 30 September 2025 with the introduction of an automatic pension enrolment system. Under the new system certain employees will be automatically included in the new pension scheme but can opt out after six months. Those who will be automatically enrolled includes employees aged between 23-60, who are not currently part of a pension scheme and who earn €20,000 or more per year.
Under the new scheme the employer, employee and the Government will all be required to pay a certain amount into the pension fund. The employee and employer are required to contribute 1.5% of the employee's annual salary in the first year. The rates will increase on an annual basis up to 6% of the annual salary by year 10. The Government will contribute an additional set rate on an annual basis. A new public body is in the process of being set up to administer the new scheme and will begin collecting contributions from 30 September 2025.
EU Pay Transparency Directive and Gender Pay Gap Reporting
In 2025 the gender pay gap regime is set to expand and be more far-reaching as the threshold for reporting is lowered from employers of over 150 employees to 50 employees. This change will have significant consequences for smaller organisations and employers who are now required to submit gender pay gap reporting on annual basis but will also be required to address any issues or fall out that arise as a result of the findings of this reporting. Organisations who have 50 employees or more will be required to take a snapshot in a date in June 2025 and report the corresponding data in December 2025.
In addition to this change on reporting Ireland will also be required to work towards implementing the EU Pay Transparency Directive by the deadline of 7 June 2026.
The implementation of the directive may require significant changes to Ireland's current reporting regime including the reporting of pay gaps based on categories of employees and providing employees and potential new hires with an oversight in relation to information in relation to ensure transparency.
Employment Permits Act 2024
The Employment Permits Act 2025 introduced significant changes to the employment permit systems in Ireland. One significant change under the Act which is due to come into effect in 2025 is the introduction of a new Seasonal Employment Permit. This is a short-term permit which will allow non-EEA nationals to work in seasonal employment for up to seven months per year.
National Minimum Wage and New Living Wage
The living wage is set to be introduced in Ireland in 2026 which will replace the national minimum wage. It is intended that the living wage will be set at 60% of the median wage in any given year. The Living Wage Technical Group (the "Group") have suggested the living wage to be €14.75 per hour.
