Employment Law Updates 2025: Key Changes Every Employee in Ireland Should Know

Employment Law Updates 2025: Key Changes Every Employee in Ireland Should Know

Introduction

As 2025 unfolds, several important updates to Irish employment law are coming into effect. Whether you’re an employee navigating your rights or an employer working to stay compliant, staying informed is crucial.

This article breaks down the most significant changes — from new pension rules and flexible working rights to gender pay gap reporting and AI in the workplace — in clear and simple terms.


1. Pension Auto-Enrolment Starts in September

From 30 September 2025, Ireland will launch the long-anticipated Auto-Enrolment Retirement Savings Scheme, known as the My Future Fund.

If you’re aged 23 to 60, earn over €20,000 per year, and aren’t already part of a workplace pension scheme, you’ll be automatically enrolled.

  • Contributions: Both you and your employer will contribute, starting at 1.5% of your salary.
  • The government will also add a top-up.
  • You can opt out after six months, but contributions made up to that point will remain in your fund.

This marks a major shift in how retirement savings are handled for Irish workers.


2. More Employers Must Report Gender Pay Gaps

Starting in 2025, the rules around gender pay gap reporting are expanding.

Previously, only companies with 250+ employees had to publish reports. Now, employers with just 50 or more staff will also be required to report on gender-based pay differences.

This change brings greater transparency and accountability to Irish workplaces and will likely impact a much wider range of businesses.


3. Right to Request Flexible and Remote Work

Under the Work Life Balance and Miscellaneous Provisions Act 2023, employees now have the right to request flexible or remote working arrangements.

Here’s what to know:

  • Employers must properly consider these requests.
  • There’s no guarantee of approval, but decisions must follow a fair process.
  • If a request is denied, the Workplace Relations Commission (WRC) will review whether the process was followed correctly.

This law doesn’t promise flexibility — but it does protect your right to ask and receive a fair response.


4. Statutory Sick Pay Stays at 5 Days

Although the government initially planned to increase statutory sick pay to 7 days, this update has been delayed.

For now, employees are still entitled to:

  • 5 days of paid sick leave per year
  • Paid at 70% of your usual wage, capped at €110 per day

Employers must continue to follow these rules while awaiting further updates from the Department of Enterprise, Trade and Employment.


5. More Flexibility During Maternity Leave

The Maternity Protection, Employment Equality and Preservation of Certain Records Act 2024 introduces new support for employees who fall seriously ill during maternity leave.

If this happens, you may now defer your maternity leave for up to 52 weeks, as long as:

  • You provide a medical certificate
  • You give at least two weeks’ notice

This change offers greater security and flexibility during difficult personal situations.


6. AI Regulations Now Apply in Irish Workplaces

The EU Artificial Intelligence (AI) Act came into force on 2 February 2025 and affects how employers can use AI in the workplace.

If your employer uses AI for things like hiring, performance reviews, or promotions, they must:

  • Be transparent about how AI is used
  • Follow strict guidelines to protect employees’ rights
  • Ensure human oversight is part of any decision-making process

Failure to follow these rules could lead to hefty fines, making this a key area for employers to watch.


Conclusion

Understanding your rights and staying informed helps you make smarter decisions about your career. These 2025 employment law changes touch on everything from pensions and parental leave to tech and transparency.

If you’re unsure how these updates affect you, or if you need guidance on a specific issue, consider speaking with an employment law specialist. Contact us

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