No different to 2023, 2024 is looking to be a busy year in relation to Employment Law changes with many long communicated legislation changes coming into practice.
Minimum Wage Increase
From the 1st of January 2024, the minimum wage for workers over the age of 20, has risen from €11.30 to €12.70.
Sick Leave
The amount of paid sick leave that can be taken rose from three days to five days on January 1, 2024. Remember that regardless of employment status (full or part-time), all employees are entitled to five days off. However, whether or not they work full- or part-time will affect the sick pay rate, which is capped at €110 per day.
When it comes to Statutory Sick Pay versus Company Sick Pay a key case that all the in the HR community are talking about is the Musgrave Case (November 2024) https://isme.ie/statutory-sick-pay-ssp.
Mandatory Retirement Ages
This is a topic that has become one of the most popular in the WRC in the last 3 years and will continue to do so with the Governments recent introduction of a flexible State Retirement Benefit https://www.gov.ie/en/publication/90d8b-changes-to-the-state-pension-contributory-what-you-need-to-know/
It is the company’s decision as to what the company’s Retirement Age should be based on objective business reasons. A few months prior to the employee due to reach the age outlined in the contract then it would be advisable to commence the process outlined in the Code of Practice on Longer Working.
Pension Auto-enrollment
Employers should keep an eye on the highly anticipated introduction of the new auto-enrolment system which aims to automatically enrol employees who meet certain criteria into a workplace pension scheme, with enrolments expected to commence by the end of 2024. the reality is that it could be even later than this as the legislation underpinning it has yet to be drafted. Once introduced, it will be gradually phased in over a decade.
Guidance for Employers and Employees can be found here: https://www.gov.ie/en/campaigns/0ab04-automatic-enrolment-for-pensions-hub/?referrer=http://www.gov.ie/AutoEnrolment/
Contractors versus Employees
The Supreme Court decision in the Karshan (Midlands) Ltd v Domino’s Pizza case has meant that it is advisable that all businesses’ that use Contractors should review the procedures and paperwork put in place between them. This monumental case has put a new perspective on the contractor versus employee status. Key considerations include the intentions of both parties, the extent to which the company controls or directs the worker, as well as the tax affairs of both parties.
Remote and Flexible working
Employers are currently awaiting the imminent publication of the WRC Code of Practice in relation to the right to request remote and/or flexible work arrangements. The publication of this code is expected to coincide shortly thereafter with regulations commencing the remote/flexible working sections in last year’s Work Life Balance legislation. Once released ISME will make all Member’s aware via our fortnightly Members Digest.
Enhanced parents’ leave
Employees who are deemed to be “relevant parents” are eligible for Parent’s Leave, which should not be confused with Parental Leave. Parent’s Leave will be extended by two weeks, for a total of nine weeks, as stated in Budget 2024. This is scheduled to come into effect in August 2024.
An employee may take parent’s leave consecutively or individually, and there is no minimum service requirement. But with some date restrictions in effect, it must be taken within the first two years of the child’s birth or adoption.
Domestic Violence Leave
Employees have a legal right to 5 days of paid domestic violence. All employees who have experienced or are currently experiencing abuse are entitled to domestic violence leave. If perhaps you suspect or an employee has divulged that they are experiencing Domestic Violence please don’t hesitate to contact the ISME HR Team to support you navigating this sensitive issue.
Gender Pay Gap Reporting
This year, the qualifying threshold for gender pay gap reporting will drop to organisations with 150 or more employees (and drop again to 50+ employees in 2025).
Increase to Employment Permit Salary Thresholds
The Minister of State for Business, Employment and Retail has announced significant changes to the Employment Permits system from 17th January 2024. The main changes include:
- 11 Occupations added to the Critical Skills list
- 32 Occupations removed from the Ineligible Occupations list
- Salary threshold for General Employment Permits to increase from €30,000 to €34,000 per annum from 17th January 2024
- Salary threshold for Critical Skills Employment Permits with a degree to increase from €32,000 to €38,000 per annum from 17th January 2024
- Salary threshold for Healthcare Assistants and Home Carers to increase from €27,000 to €30,000 and Horticultural Workers and Meat Processors salary requirement to increase from €22,000 to €30,000 from 17th January 2024
- Extension of quotas for dairy farm assistants, butcher/deboners, meat processors and horticultural workers from 17th January 2024
Where a Labour Market Needs test is required for a General Employment Permit application, the advertisement will need to include the amended salary thresholds.
Salary thresholds will further increase in January 2025 and again in January 2026 for certain permits.
As always, if you require any support with HR or Employment Law you can contact the ISME HR Team on 01 6622755 Option 2 or via HR@ISME.ie
