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Game-changing employment law on the way

Jun 10, 2022

New laws set to come into place in Ireland will bring significant change for both employees and employers. Moira Grassick looks at pending legislation and what employers can do to start preparing.

Employment law is constantly changing, so employers must keep track of what is on the horizon.

Current changes to employment laws are a top priority for both Government and the Oireachtas, with a raft of new laws being proposed to deal with everything from domestic violence to probation periods. 

Although many of these laws are in their early stages, they are expected to pass, meaning employers must prepare for the changes they will bring about.

There is a clear indication that cross-party support on several Bills will have a direct impact on the employment relationship by as early as July and August of this year.

Paid leave bills underway

The Government recently approved a publication of the draft Sick Leave Bill 2022 providing for up to three paid sick days per year.

This is planned to increase to five days in 2024, seven days in 2025 and 10 days in 2026. Under the new rules, employers will need to pay 70 percent of normal wages up to a maximum of €110 per day.

This isn't the only new type of paid leave that has been proposed, however.

The equality committee is set to discuss a bill to introduce paid leave for survivors of domestic violence. This would allow time off for medical visits, criminal and civil legal proceedings, counselling sessions, or for victims to look for a new home.

Tips and gratuities

Amendments to the National Minimum Wage bill may soon mean that employees in the service sector will be entitled to all tips and gratuities paid by customers. Up until now, it has been up to an employer to pay customer tips to employees.

Service charges could be used to subsidise employee pay, so employers may need to make changes to their payroll system in anticipation.

Retirement

Older workers in Ireland will also be receiving better government support. Although there is no mandatory retirement age in Ireland, an exception allows employers to introduce it if the reason for doing so can be objectively and reasonably justified.

The new Employment Equality (Abolition of Mandatory Retirement Age) Bill 2022 would abolish this loophole, meaning that it would be less likely that older workers would be forced out of work before they chose to leave.

Redundancy

Lengthy legal battles have led to proposed changes in the rules surrounding redundancy.

An amendment to the Companies Bill (2021) and the Protection of Employment Bill (2017) aims to provide preferential creditor status to employees in collective redundancies. It follows the campaign by Debenhams employees to receive their full redundancy pay after the company went into liquidation.

Right to disconnect

With so many people still working from home, many employees will be happy to hear about the Right to Disconnect Bill.

Thirty percent of home workers in Ireland have stated that they regularly work past their contracted hours. This bill would allow all home- and office-based employees to have the right not to work routinely outside normal hours.

Stay aware

Changes to company climate policies, potential changes to pay rates in specific sectors and a drive to ensure clarity around working conditions will all soon be discussed in the Dáil. Every employer must be aware of these potential changes to comply fully with all legislation.

Moira Grassick is COO at Peninsula Ireland. 

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