2024 was yet again another busy year for employment law related changes in Ireland. Our quick roundup will give you an overview of what updates occurred during 2024.
Code of Practice on the Right to Request Remote & Flexible Working
The Code of Practice on the Right to Request Remote and Flexible Working was issued by the Workplace Relations Commission (WRC) in early 2024 and provides guidance to employers and employees on implementing remote and flexible work arrangements in compliance with Irish employment law.
The Code emphasizes the importance of fairness, transparency, and equality in the remote working process, highlighting the rights of employees to request flexible arrangements and the responsibilities of employers to consider and respond to these requests in a reasonable manner.
Code of Practice on Determining Employment Status
The Revenue Commissioners released new guidance outlining the factors for determining employment status for tax purposes. Although this guidance is primarily focused on tax law and practice, it is also pertinent for establishing individual’s status in terms of employment and social welfare.
Businesses that hire self-employed contractors, consultants, and freelancers are advised to reassess their commercial arrangements to confirm they meet the criteria for valid self-employment concerning tax and employment laws.
This Code is in addition to the Revenue Guidelines for Determining Employment Status for Taxation Purposes which was published by the Revenue Commissioners earlier this year.
Employment Permits & Immigration
A number of crucial and well needed reforms were implemented during 2024 to modernise the employment permit system.
- Salary thresholds increased and in future will now be automatically indexed against the annual change in mean weekly earnings calculated by the CSO. From 17 January, 2024, General Employment Permit Holders (with some limited exceptions) must be paid a minimum annual salary of €34,000 for a 39 hour week and Critical Skills Employment Permit Holders must be paid a minimum annual salary of €38,000 for a 39 hour week.
- Two new types of permits – A new Seasonal Employment Permit now caters for short term and recurrent employment situations in appropriate sectors. A new Dependent/Partner/Spouse Employment Permit for dependents of Critical Skills Employment Permit holders allows Spouses and Partners to apply for immigration permission to access the labour market without the need to hold an employment permit.
- Change of Employer – Certain employment permits holders can now change employer to another employer after a period of nine months. Unlike applications for new permits, there is no requirement for employers to conduct a labour market needs test before the permit holder applies to change employer.
- Update to the Labour Market Needs Test – The requirement for advertising in a national newspaper has been abolished. Vacancies must now be advertised on two platforms, one of which is the European Employment Service (EURES) Network (Irish partner being jobsireland.ie) and the other can be any digital platform with the principal purpose of publishing employment offers.
- Agencies & Subcontractors – Employment agencies can now be employers of permit holders. Subcontractors are also permitted to avail of the Contract for Service Employment Permit in the same manner as a standard contractor.
Enhanced Reporting Requirements (ERR)
Since 1 January 2024, all employers are required to report to Revenue, on a real-time basis, three categories of non-taxable payments:
- Remote working allowance of €3.20 per day;
- Small benefits exemption (tax free vouchers etc); and
- Travel and subsistence (seven specific sub-categories).
An information return is required on or before each date any employee receives any of the reportable ERR elements.
EU AI Act
The European Union’s Artificial Intelligence Act (“AI Act”) came into force on 1 August 2024.This starts the clock on obligations taking effect under the AI Act. The first obligations come into force within months and organisations need to be ready (keep an eye out for our 2025 updates).
Gender Pay Gap Reporting
Gender pay gap reporting expanded and is now mandatory for all organisations in Ireland, both public and private, with 150 employees or more. They must publish a report on their website that details their hourly gender pay gap across a range of metrics – this must be done by December for 2024 and it is intended that from 2025 the reporting deadline will move to November.
Maternity Leave Postponement
From 5 November 2024, employees can postpone maternity leave for between 5 and 52 weeks, if they become seriously ill while on maternity leave and need ongoing treatment for a health condition. Serious health conditions cover both physical and mental illnesses that are medically certified.
Minimum Wage
The national minimum wage increased to €12.70 per hour with effect from 1 January 2024.
Parent’s Leave
Parent’s Leave increased from 7 weeks leave to 9 weeks leave with effect from 1 August, 2024. Parent’s leave entitles each parent to 9 weeks’ leave during the first 2 years of a child’s life, or in the case of adoption, within 2 years of the placement of the child with the family.
Redundancies – Collective
Collective redundancies occur when an employer plans to dismiss a certain number of employees within a 30-day period, and this number exceeds a specific threshold. The threshold varies depending on the size of the business. As of July 2024, protections for employees facing redundancy have been enhanced.
Employers, liquidators, and other responsible persons must now adhere to stricter notification requirements. The responsible person must also notify the Minster for Enterprise, Trade and Employment of a proposed collective redundancy in writing at the earliest opportunity and at least 30 days before the first dismissal takes effect.
Retirement Ages & Pension
During 2024, case law (Seamus Mallon v Minister for Justice) clarified that a general mandatory retirement age is lawful provided it can be objectively justified by a legitimate aim and that it is applied consistently, systematically and coherently. Employers should also ensure that the legitimate aims they are identifying are relevant to their workforce.
Employers can still allow longer working under the WRC Code of Practice on Longer Working.
From 1 January, 2024, employees have the option to defer their state pension age up to the age of 70 in return for a higher pension. While there is no corresponding obligation on employers to allow employees to continue working up to the age of 70, it will inevitably lead to increased requests from employees to do so.
If you have any questions on any aspect of the areas mentioned in this article, please contact us on 01 525 2914 or info@voltedge.ie.
Liz O’Donovan, Voltedge Management Senior HR Consultant & Professional Services Manager
