Alison is an Associate in Dispute Resolution and is part of the Employment team. She advises employers and employees on all aspects of the employment relationship, both contentious and non-contentious. Alison represents clients before the Workplace Relations Commission, the Labour Court and the civil courts in employment litigation such as injunctive proceedings, unfair dismissal, equality and discrimination, occupational stress, and health and safety. She also advises on areas such as statutory entitlements, long term sick leave, disciplinary and grievance procedures, investigations and redundancies and conducts contractual and policy reviews.
So far 2025 looks like it is going to be another busy year for employment law. In this article Alison Devine of Addleshaw Goddard looks at three key employment law changes which HR consultants and employers should be aware of.
1. Maternity Protection, Employment Equality and Preservation of Certain Records Act 2024
This Act was introduced into law on 20 November 2024 and introduced significant and long awaited changes in the area of maternity leave. Importantly the Act also amends the Employment Equality Acts to restrict the use of non-disclosure agreements or clauses in relation to the settlement of discrimination or harassment claims.
HR consultants and employers should be aware of the following:-
- 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 at least two weeks' notice in writing and provide a medical certificate at this time also.
- The Act introduces a new section 14B into the Employment Equality Acts which restricts the use of non-disclosure agreements (NDA's) or clauses in relation to 'relevant disclosures' which include 'allegations' or 'any action taken' by an employee relating to discrimination, harassment, sexual harassment or victimisation claims. This is a very important change to the law in Ireland which now means that employers can no longer prevent employees from discussing their claim or the settlement of their claim in discrimination or harassment cases. Secton 14B defines a 'non-disclosure agreement' as an agreement or provision, whether in writing or not, between an employer and an employee that intends to preclude the making of a 'relevant disclosure' by the employer or the employee or both.
- There are some limited exceptions to this prohibition. NDA's can be included in settlement agreements for discrimination claims which are settled through the Workplace Relations Commission's mediation service. There is also an exemption for the inclusion of NDA's 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.
These changes in relation to non-disclosure agreements have significant implications for employers when dealing with allegations or claims by employees of discrimination or harassment. As the changes only came into force in November this is definitely an area which we will be keeping an eye on over the course of the year and keeping employers informed and up to date.
2. 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.
HR consultants and employers should be aware of the following:-
- 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.
3. EU Pay Transparency Directive and Gender Pay Gap Reporting ⚓︎
In 2024, 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.
HR consultants and employers should be aware of the following:-
- This change to the reporting threshold 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.