In 2023, there were several modifications to employment laws, which resulted in a busy year. Employers experienced significant changes such as the implementation of the EU Directive on Transparent and Predictable Working Conditions and the commencement of statutory sick pay. However, it seems that the pace of change is not decelerating. In 2024, it appears to be an equally, if not more, active year for employment law.
Here are several changes that employers need to be aware of for 2024:
National Minimum Wage Increase
The National Minimum Wage will increase by 12%, from €11.30 to €12.70 per hour for employees aged 20 and over. This increase has come into effect from 1 January 2024. The Government first announced this increase in October as part of the 2024 budget. The Low Pay Commission recommended an increase of 12% in July, which is substantially higher than the 7.6% recommended by the Commission and adopted by the Government last year.
This increase is part of the Government's plans to introduce a National Living Wage. The National Living Wage will be set at 60% of the hourly median pay, as agreed by the Government, in accordance with the Low Pay Commission's recommendations. It will be phased in over four years and will be fully implemented by 2026 when it will replace the National Minimum Wage.
Increased Sick Pay Entitlements
From 1 January 2024, paid sick leave entitlement will increase from three days to five days. This entitlement applies to all employees who have 13 weeks of service, regardless of whether they are full-time or part-time. This is part of the Government's plan to gradually increase the statutory sick pay entitlement to 10 days by 2026. This scheme aims to provide workers with a basic level of financial protection when they cannot work due to illness or injury.
Employers will be required to pay 70% of the employee's normal weekly pay, up to a maximum of €110 per day. An employer is considered to comply with the law if the paid sick leave entitlement they offer employees is either as favourable as or more favourable than the statutory provision.
Work Life Balance and Miscellaneous Provisions Act 2023
The Work Life Balance and Miscellaneous Provisions Act 2023 was enacted on April 4th, 2023. This law brought about various changes, including the implementation of measures such as unpaid leave for medical purposes, domestic violence leave and the extension of maternity leave provisions. It is important to note that not all provisions outlined in this legislation have taken effect yet. It is expected that the remaining provisions, such as the right to request remote working and the right to request flexible working, will be implemented this year.
Once these provisions come into effect, all employees will be granted the right to request remote working. Employers will be obligated to consider such requests in accordance with a Code of Practice. Once the provisions for flexible working come into effect, employees will have the right to request flexible working arrangements for caring purposes. Currently, the Code of Practice has not been published. However, it is anticipated that this document will not only cover guidance for remote working requests but also include guidelines for both employees and employers regarding the right to flexible working.
Parent Leave Entitlement
As announced in the Budget 2024, parents’ leave and parents’ benefits will be extended by two weeks to nine weeks from August 2024. This means that each parent will be entitled to nine weeks of leave during the first two years of a child’s life or, in the case of adoption, within two years of the placement of the child with the family.
Pension Auto-Enrolment
There will be a significant reform to Ireland’s pension system when the auto-enrolment scheme is introduced this year. The minister for social protection revealed details of the Automatic Enrolment Retirement Savings System on 29 March 2022. This new system will automatically enrol employees who are not currently paying into a pension, earn more than €20,000 per year and are aged between 23 and 60. It is designed to ensure that employees have additional savings beyond the state pension when they retire. Employees will have the option to opt out of this scheme. The commencement of the scheme is anticipated in the latter part of 2024.
For any HR queries, contact