First published on Friday, January 31, 2025
Last updated on Friday, January 31, 2025
Ireland officially has a new government—but you might be tempted to think it’s more of the same for your business. Fianna Fáil and Fine Gael have struck another deal, this time with the support of independent TDs. But while the faces in charge remain familiar, this doesn’t mean employers can sit back and relax...
2025 is shaping up to be a year of big changes in employment law, and your business will need to stay ahead of the curve.
The end of NDAs (at least for certain topics…)
For some businesses, NDAs were used to keep some workplace matters confidential. Well, not anymore—at least when it comes to discrimination, harassment, and victimisation claims. The Maternity Protection, Employment Equality and Preservation of Certain Records Act 2024 now restricts NDAs in these changes.
The new government isn’t likely to reverse this, so employers will need to think carefully about their settlement strategies for 2025. In situations where you’re unsure and need to protect your business, always consult legal advice from qualified experts. In need of immediate advice? Try asking Bright BrAInbox: ‘What are the risks of offering someone a settlement agreement?’
Maternity leave gets a flexible upgrade
One of the standout changes from last year’s legislation is the new right for employees with serious health conditions to defer maternity leave for up to 52 weeks. This could have a big impact on workforce planning, so make sure your HR policies are up to scratch.
When new legislation comes thick and fast like this, a great strategy is to use a compliant, online document library, like BrightBase. BrightBase grants you access to expertly written policies, templates and guides which are constantly updated in-line with new laws, keeping you on the right side of the law without tons of legwork.
Auto-enrolment: It’s finally happening
After decades of delay, Ireland is finally launching an auto-enrolment pension system on the 30th of September 2025. Employers will be required to contribute alongside employees and the government into a ‘My future fund’ scheme. The system includes an opt-out after six months, but once employees are in, they’re in. If you haven’t already, you’ll need to start updating your policies, payroll procedures, and contracts in order to reflect this change.
Employment status: More scrutiny ahead
Recent court decisions have reshaped how employment status is determined, making it harder for businesses to classify workers as self-employed. The Supreme Court’s ‘Karshan test’ is now being used by both the WRC and the High Court to assess employment disputes. Expect more case law in 2025—and potentially a lot more challenges if your business relies on independent contractors.
Aside from looking up the new guidance published by the Revenue Commissioners, you can always seek advice from our experts at BrightAdvice, or try asking Bright BrAInbox: ‘What employment status do contractors have?’
Gender pay reporting—small businesses, you’re next!
Employers with 50+ employees now need to report gender pay gaps (down from 150+ last year). Plus, the government is working towards implementing the EU Pay Transparency Directive, which could shake up how salaries are structured and disclosed. Even smaller businesses need to start preparing for greater pay transparency requirements.
For more information on gender pay gap reporting, try asking ‘What is the gender pay gap reporting deadline for employers?’
Minimum wage and sick pay increases
Since January 1st, 2025, statutory sick pay has increased from 5 to 7 days per year. The national minimum wage has also risen to €13.50 per hour. These changes may seem small, but they add up, especially if your business has a larger workforce.
Again, not to sound like a broken record here, but keeping your payroll, policies, and contracts up-to-date will be critical in the months ahead. Unless you like the sound of costly fines and the associated risks of non-compliance?
Honourable mentions: AI and seasonal work
From the 2nd of February 2025, the first provisions of the EU’s AI Act come into force, which means businesses using AI for hiring, promotions, or performance evaluations come into force. The Act bans certain high-risk AI practices and gives employees the right to know how AI is influencing decisions about them. HR teams will need to ensure AI systems are transparent and accountable—before hefty fines come into play.
And finally, new seasonal employment permits are on the way in 2025, mainly benefiting sectors like horticulture and agriculture. Meanwhile, minimum salary thresholds for employment permits are set to rise, with increases planned for 2025 and 2026. Businesses hiring international workers should pay close attention to these developments.
How BrightHR can keep things ‘business as usual’ in your business
Ireland’s new government may feel familiar, but the employment law landscape in 2025 is anything but. With pension auto-enrolment, NDA restrictions, gender pay gap reporting, AI regulations, and evolving employment status rules, businesses need to stay proactive. Don’t let the illusion of ‘business as usual’ catch you off guard—start preparing now to ensure a smooth year ahead.
With so many changes coming at you from all different angles, BrightHR is here to make things simple. Book a demo with one of our friendly experts or call us on 1800 279 841 to see it in action.
