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In our first newsletter of 2024, we at Anne O’Connell Solicitors would like to highlight some key employment…
In our first newsletter of 2024, we at Anne O’Connell Solicitors would like to highlight some key employment law changes expected this year. We are aware that employment law in Ireland can be a tricky landscape to navigate, so we hope this article will be useful and informative for our readers.
Protected Disclosures
Firstly, a reminder that under the Protected Disclosures (Amendment) Act 2022 which commenced on 1st January 2023, private sector employers with at least 250 employees were required to establish reporting channels and procedures for their workers to report wrongdoings from that date. Since 17th December 2023, that requirement now applies to all private sector employers with at least 50 employees. If these reporting channels have not yet been established, this should be treated as a priority now for all private sector employers that have 50 or more employees. The requirement applies to all public sector employers irrespective of size.
Increase to Minimum Wage
The national minimum wage in Ireland is now €12.70 an hour since 1st January 2024 for employees aged 20 or older. Employers should ensure that their hourly rates of pay comply with or exceed the new minimum wage. As per the National Minium Wage Acts 2000-2015 the following can be included in calculating the minimum hourly wage: basic pay, shift allowances or premiums, piece and incentive rates, commission and bonuses which are productivity related. Meanwhile, the following payments cannot be included: overtime payments, payments for being on call or standby, premiums for Sunday or unsocial hours, call-out premiums, payments in kind or benefits in kind, tips or gratuities paid into a central fund and paid through payroll, and the payment of expenses.
Statutory Sick Pay Update
As per the Sick Leave Act 2022 Ireland now has a statutory sick pay scheme, which came into effect on 1st January 2023. In 2023, employees were entitled to three statutory sick days in a calendar year. This has now increased to five statutory sick days in 2024. Employers should familiarise themselves with the key provisions of this new statutory sick pay scheme, which requires employers to pay a sick leave payment at a rate of 70% of an employee’s wage, subject to a daily cap of €110.00.
Pensions Auto-Enrolment
In late 2024, Ireland is due to launch its new pension auto-enrolment system. Under this new system, certain employees who do not currently have a pension scheme will be automatically enrolled into the system, whereby the employee, employer and the Government will pay a certain amount into the employee’s pension fund. Employees will be automatically enrolled if they are between 23 and 60 years of age, are not currently part of a pension scheme, and earn more than €20,000 per year. However, those automatically enrolled will be able to opt out after six months. Thereafter, employees will be able to opt out or suspend contributions in certain circumstances and at certain times.
Parents Leave
Parents leave is expected to increase from 7 weeks to 9 weeks in August 2024.
Gender Pay Gap Reporting
Under the Gender Pay Gap Information Act 2021, employers with 150 or more employees will be subject to reporting obligations this year.
New Draft Remote Working Code
Finally, employers should be aware that the Workplace Relations Commission has completed a draft Code of Practice on the right of employees to request flexible and remote working. It has been submitted to the Minister for Enterprise, Trade and Employment for review, following which it will be published. Watch this space!
If you would like advice on any of the above topics, please reach out to us at info@aocsolicitors.ie and we would be happy to assist you. For further updates throughout the year, keep an eye on our newsletter!
Authors – Tara Kelly, Jenny Wakely and Anne O’Connell