2023 has, already, seen many important and significant legal and regulatory developments.
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.
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 recent establishment of paid sick leave for employees, the pending introduction of mandatory Gender Pay Gap reporting for in-scope employers at EU level which will significantly increase the reporting obligations for in-scope employers in Ireland and the proposed pay transparency measures coming down the tracks as a result of the EU Pay Transparency Directive.
There have also been substantial changes to Ireland's whistleblowing regime due to the introduction of the Protected Disclosures (Amendment) Act 2022 which significantly extends 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.
KEY THEMES IN EMPLOYMENT
IRISH LEGISLATION PASSED SINCE THE SPRING HORIZON TRACKER
Work Life Balance and Miscellaneous Provisions Act 2023
Date signed into law: 4 April 2023
This act provides employees with a right to request remote working but in circumstances where the vast majority of employers have implemented hybrid working policies, the reality is that few employees will actually need a statutory basis to request remote working and the law is lagging behind the market in this regard.
The act also transposes the EU Directive on Work-Life Balance for Parents and Carers into Irish law; the aim of which is to increase the participation of women in the labour market and encourage a more equal sharing of family related leave between men and women. It provides for a right to request flexible working arrangements for caring purposes and provides five days' statutory unpaid leave for medical care purposes and separately, five paid days' leave for victims of domestic violence (the rate of pay is yet to be determined). It also significantly extends the period in which new mothers are entitled to paid time off work to breastfeed (from six months to 2 years). Transgender males who have obtained a gender recognition certificate and who subsequently become pregnant also fall within this scope.
Latest stage: Awaiting commencement orders.
IRISH PROPOSED LEGISALTION
Plan of Action on Collective Redundancies following Insolvency Bill 2023
The aim of this proposed bill is to enhance the protection afforded to employees in a collective redundancy situation where their employer is insolvent, amending the Protection of Employment Acts 1977 to 2014 and the Companies Acts. A number of robust employee protections are proposed including the proposed removal of the statutory exemption to the requirement that collective redundancies cannot take effect until after the 30 day notification period where the collective redundancies are precipitated by insolvency. This removal will ensure that all collective redundancies will be subject to the 30 day notification period. There are also significant amendments made to the insolvency provisions in the Companies Act 2014 which are described in Part 4 of the bill and relate to transactional avoidance measures protecting creditors, to the reckless trading provisions, and to the contribution order provisions under s. 599.
Latest stage: Heads of Bill published 23 March 2023.
Protection of Employees (Employers' Insolvency) (Amendment) Bill
See Insolvency section
BILLS
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.
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. The 2023 Bill seeks to amend the Employment Equality Acts 1998 – 2021 and the Gender Pay Gap Information Act 2021. The provisions of this bill may form part of the legislation that will be enacted to transpose the EU Pay Transparency Directive.
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 fairness in the workplace 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 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: Member States must implement the directive by 7 June 2026. By 7 June 2031 it will be required to inform the Commission about the impact of the directive in practice, and two years after this date the Commission shall submit a report to the European Parliament and to the Council on the implementation of this Directive.
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
PRIVATE MEMBERS' BILLS
Remuneration Information and Pay Transparency Bill 2023
Date published: 24 January 2023
The aim of this bill is to make further and better provision for equality between employed persons by providing for transparency in respect of matters relating to remuneration. The 2023 Bill seeks to amend the Employment Equality Acts 1998 – 2021 and the Gender Pay Gap Information Act 2021. The 2023 Bill covers a number of developments that are set to be introduced by the EU Pay Transparency Directive.
Latest stage: Currently before Seanad Éireann, Second Stage.
EU DIRECTIVES AWAITING IMPLEMENTATION
Directive on Minimum Wages in the EU
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
EU DRAFT LEGISLATION
Proposal for a Directive on the Gender Pay Gap - Transparency on Pay for Men and Women
Procedure reference: 2021/0050 (COD)
Date published: 4 March 2021
Gender pay gap ("GPG") reporting has become a hot topic in recent years across EU Member States, and the Commission has proposed a directive on pay transparency measures, containing measures to strengthen the application of the principle of equal pay, including obligations related to GPG reporting. The aim of the directive is to promote greater pay transparency and fairness in the workplace and to reduce the gender pay gap within the EU.
Latest stage: The political agreement reached by the European Parliament and the Council is now subject to formal approval by the co-legislators. Once agreed, the directive will enter into force 20 days after official publication. Member States will then have three years to transpose the new elements of the directive into national law.