2023 saw many important legal developments and significant cases.
Diversity, equity and inclusivity remain at the core of legislative developments at both Irish and EU level. This is reflected by the introduction of a number of family friendly leave periods and entitlements, the establishment of paid sick leave for employees in 2023 and the pending introduction of extensive pay transparency measures and mandatory Gender Pay Gap reporting at EU level as a result of the EU Pay Transparency Directive.
High on the agenda for employers is the ongoing management of a hybrid workforce and its utilisation as a key tool in the attraction and retention of talent. The imminent introduction of a statutory right to request remote working has gained a lot of traction but in circumstances where the vast majority of employers have already implemented hybrid working policies, few employees will actually need a statutory basis to request such remote working arrangements.
There have also been substantial changes to Ireland's whistleblowing regime due to the introduction of the Protected Disclosures (Amendment) Act 2022 which has significantly extended the scope of the Protected Disclosures Act 2014 and places much more onerous obligations on employers in terms of managing such complaints. The 2022 Act also introduces significant potential penalties, including criminal sanctions, for legislative breaches.
The tech sector experienced unprecedented uncertainty over the course of 2022 and 2023 which saw the vast majority of the leading tech companies responding to the significant pressure to reduce costs by effecting often large-scale (i.e. collective) redundancies.
A number of important decisions were also handed down by the Workplace Relations Commission ("WRC"), the High Court and the Supreme Court in 2023 in areas relating to statutory sick pay, dismissing employees during their probationary period, suspension and the misclassification of an independent contractor.
KEY THEMES IN EMPLOYMENT
ACTS AWAITING COMMENCEMENT
Work Life Balance and Miscellaneous Provisions Act 2023
Date signed into law: 4 April 2023
This act aims to increase the participation of women in the labour market and to promote the take-up of family related leave and flexible working arrangements. The act also contains provisions for domestic violence leave and will, separately, transpose the EU Directive on Work Life Balance for Parents and Carers. Commencement orders are necessary to bring the provisions of the act into effect.
- From 3 July 2023, the extended entitlement to breastfeeding breaks (from 26 weeks to 104 weeks following the child's date of birth) and the introduction of five days' unpaid leave for medical care purposes commenced.
- The right to paid domestic violence leave came into effect on 27 November 2023.
- The right to request remote working has not yet come into force and its commencement is on hold pending the publication of the Workplace Relations Commission's applicable Code of Practice.
- The right of employees to request flexible working arrangements for caring purposes is also still pending a commencement order and is likely to be come into effect with the broader right of employees to request remote working.
Latest stage: Although the act is signed into law, a number of provisions await commencement as set out above.
IRISH PROPOSED LEGISALTION
Protection of Employees (Employers' Insolvency) (Amendment) Bill
See Insolvency section.
Automatic Enrolment Retirement Savings Systems Bill
The Government initially set an ambitious timeline to have the auto-enrolment system set up in Ireland by the end of 2023 and for employee enrolments to commence from 1 January 2024. However, more recent Government indications envisaged its commencement in the second half of 2024. This timeline is now looking somewhat unlikely as we are still awaiting implementing legislation and the Budget 2024 made no provision for auto-enrolment costs.
Latest stage: Pre-legislative scrutiny is complete. Listed for priority publication in the Autumn Legislative Programme.
State Pensions Reform Bill
A bill to allow an employee reaching the age of 66 to defer access and receipt of the state contributory pension from the ages of 66 to 70 and receive an actuarially-based increase in their weekly payment rate from the date they access their pension entitlement.
Latest stage: Heads of bill have been submitted to the Joint Oireachtas Committee on Social Protection for pre-legislative scrutiny. Listed for priority publication in the Autumn Legislative Programme.
BILLS
The bill aims to enhance the protection afforded to employees of insolvent employers in a collective redundancy situation, by amending the Protection of Employment Act 1977 and the Companies Act 2014. The amendments to the Employment Act will ensure, among other things, that employees in such situations are provided with certain important information and properly consulted with during the process, and that all collective redundancies, including those caused by insolvency, will be subject to the 30 day notification period. The amendments to the Companies Act relate to transactional avoidance measures protecting creditors, to the reckless trading provisions, and to the contribution order provisions under s. 599. The bill also provides for the establishment of a statutory Employment Law Review Group (ELRG) tasked with advising the Minister for Enterprise, Trade and Employment on aspects of employment and redundancy law.
Latest stage: This bill was included under priority publication in the Autumn Legislative Programme. It is currently before Dáil Éireann, Third Stage.
Date published: 4 October 2022
This bill proposes to consolidate the Employment Permits Acts and make amendments to modernise the employment permits system and increase its responsiveness which will, when enacted, be warmly welcomed by employers and permit applicants. The key proposed changes include the introduction of a seasonal employment permit and a Special Circumstances Employment Permit, the introduction of changes to streamline the requirements to make the grant process more efficient and the provision of additional conditions in respect of granting an employment permit, such as training or accommodation support.
Latest stage: Completed Dail Éireann, Third Stage completed.
PRIVATE MEMBERS' BILLS
Remuneration Information and Pay Transparency Bill 2023
Date published: 24 January 2023
The aim of this bill is to promote and bolster equality between male and female applicants and employees by introducing various transparency requirements in respect of remuneration. This bill seeks to amend the Employment Equality Acts 1998 – 2021 and the Gender Pay Gap Information Act 2021. The provisions of this bill transposes some of the provisions of the EU Pay Transparency Directive which will introduce a number of far-reaching and onerous pay transparency measures and enhance the gender pay gap reporting obligations in Ireland.
Latest stage: Currently before Seanad Éireann, Second Stage.
EU DIRECTICES AWAITNG IMPLEMENTATION
Date published: 17 May 2023
The aim of the directive is to promote greater pay transparency and to reduce the gender pay gap ("GPG") within EU member states. GPG reporting has become a hot topic in recent years across EU Member States and this directive is a further example of the EU's commitment to promoting diversity, equity and inclusivity in the workplace. This directive on pay transparency introduces significant pay transparency obligations on employers to strengthen the application of the principle of equal pay and, separately, significantly enhances GPG reporting obligations which will amend the current GPG reporting requirements in Ireland.
Latest stage: The EU Pay Transparency Directive came into effect on 6 June 2023. As such, Member States will need to transpose the Directive into national law within three years (5 June 2026).
Date published: 25 October 2022
This directive aims to ensure the adequacy of minimum wages with the aim of achieving decent living and working conditions; promote collective bargaining on wage-setting; and enhance effective access of workers to rights to minimum wage protection where provided for in national law and/or collective agreements.
Transposition date: 15 November 2024