New action plan for collective bargaining

On 5 November 2025, the Government unveiled Ireland’s Action Plan to Promote Collective Bargaining 2026–2030, a phased programme to meet Article 4 of the EU Adequate Minimum Wages Directive whilst also maintaining Ireland’s voluntarist model of union recognition. Proposals include enhanced union access to workplaces, a mandatory mediation window between notice of industrial action and its commencement, potential financial incentives for collective bargaining, and capacity building for the WRC and Labour Court alongside refreshed Codes of Practice. For employers, 2026 will be an opportune time to assess engagement structures, review any existing employee representative forums, and evaluate internal consultation routes in advance of implementation. We wrote about this further here.

Approaching collective redundancies in 2026?

The High Court’s decision in Debenhams Retail Ireland Limited (In Liquidation) v Jane Crowe, in March 2025, reinforces two core risk points for employers undertaking collective consultations - timing and compensatory exposure. The Court confirmed that the statutory obligation to consult “at the earliest opportunity” must be interpreted in light of practical realities and that a short delay may be justifiable where no demonstrable loss arises for employees. It also clarified that compensation under the Protection of Employment Act 1997 depends on proof of loss or injury, curbing the use of the provision as a purely punitive device. These principles should now inform consultation planning and strategy for 2026 consultation exercises. We write about this further here.

Increasing flexible and remote working claims

The Work Life Balance and Miscellaneous Provisions Act 2023 continued to drive claims in 2025, with WRC decisions consistently emphasising that the legislation confers only a right to request and does not confer an automatic right to remote or flexible working. Breaches under the Act arise as a result of process failures (including non-compliance with the prescribed time limits – see Thomas Farrell v Salesforce WRC decision here) rather than from the substantive decision. We wrote about this further here.

With increasing numbers of employers re-evaluating hybrid arrangements and return to office mandates in 2026, continued scrutiny and challenges to flexible/hybrid working decisions should be expected. Awards for breaches can be up to four weeks’ remuneration for remote working and up to twenty weeks’ remuneration for flexible working claims. Given the limits of the 2023 Act, employers should also expect challenges to flexible or remote working decisions to be framed as a potential discrimination claim under equality legislation either on a stand-alone basis or in conjunction with any alleged breaches of process.

Expanded gender pay gap reporting

The threshold for mandatory gender pay gap reporting fell significantly to employers with fifty or more employees in 2025, materially expanding the number of employers in scope of the reporting obligations. A pilot central online portal launched in autumn 2025 for voluntary submissions by Ibec and 30% Club members, with the government signalling that full scale, mandatory online filing is likely from 2026 subject to further regulations to provide for this. Employers must still publish their reports on their websites or otherwise make them publicly accessible and should prepare for dual disclosure once the portal is fully operational. We wrote further about this here.

EU Directives – where are we now?

The Pay Transparency Directive

Transposition of the EU Pay Transparency Directive is due by June 2026 and will introduce obligations that go significantly beyond current gender pay gap reporting requirements. The government set out proposals in January 2025 to implement parts of the Directive relating to the recruitment stage, including disclosure of the initial pay range in job advertisements and a ban on asking candidates about their current or past pay, aligned with Article 5. Additionally, the government’s Autumn Legislative Programme for 2025 indicated that the heads of a Pay Transparency Bill were in preparation so further legislative steps are anticipated in 2026. Ahead of the new measures, employers should determine the salary ranges to be stated in job advertisements and refrain from asking candidates about their current or previous pay. We wrote further about this here.

The Platform Workers Directive

The EU’s Platform Workers Directive, now adopted at EU level, is due for implementation in Ireland by December 2026 and will introduce a rebuttable presumption of employment where platforms exercise control over platform workers, shifting the burden onto platforms to prove genuine self employment. It will also require greater transparency and contestability of algorithmic management decisions and strengthen data protection for platform workers. The Department of Enterprise, Tourism and Employment published a public consultation document which closed on 3 November 2025 so 2026 will be a critical preparation year for platforms and businesses using platform workers to review classification models ahead of the new regime.

Pension and retirement changes

Auto‑enrolment pension kickstarts

“My Future Fund,” the State’s auto‑enrolment scheme overseen by the National Automatic Enrolment Retirement Savings Authority (NAERSA), commenced on 1 January 2026, with phased development over the following decade. Eligible workers aged 23 to 60 earning more than €20,000 who are not in a workplace pension scheme will be automatically enrolled, with opt out or suspension permitted after six months. Employers will not administer the scheme directly but must facilitate payroll deductions, put in place appropriate software, and manage eligibility with existing schemes.

The Minimum Pension Contribution Regulations also became effective from 1 January 2026, introducing a 3.5% minimum total contribution where employers seek to rely on their own schemes (minimum 1.5% employer and the remaining 2% by employer and/or employee), coupled with express employee consent requirements for enrolment in workplace schemes and a prohibition on lower contribution rates for temporary or probationary employees. Employers should also note the Department’s position that employees newly enrolled in a company scheme in November/December 2025 will typically fall outside the initial auto-enrolment sweep. An employer portal on the My Future Fund website has been live since 1 December 2025 and failure to complete company setup and payment method configuration in time risks fines, penalties or prosecution.

Potential retirement and pension reform

The Employment (Contractual Retirement Ages) Act 2025 was signed into law by the President on 16 December 2025. The Act is not yet commenced as it is awaiting the preparation of a complementary Code of Practice by the WRC but this is expected over the course of 2026. On commencement, the Act will require contractual retirement practices to be aligned with the State pension age by allowing employees to decline to retire at a lower contractual age and to continue working to the State pension age, subject to formal notification. The Act sets out recourse to the WRC with potential compensation up to 104 weeks’ remuneration or €40,000, whichever is greater, and creates related criminal offences. It will be prudent for employers to review their contractual retirement clauses and to establish appropriate processes to address and record any requests from employees to remain in employment up to the State Pension Age in line with the time periods required under the Act. We wrote further about this here.

What’s ahead for AI regulation?

The EU AI Act entered into force in 2024 to be phased in by August 2026, including early bans on prohibited AI systems and obligations on organisations deploying general purpose AI in 2025. The government has identified national competent authorities responsible for oversight of the Act’s implementation, including the WRC, and plans to set up a National AI Office by August 2026 to coordinate supervision. Separately, the European Commission’s draft Digital Omnibus Regulations propose streamlining several digital frameworks, including amendments to the AI Act that could delay some high risk system obligations and lighten provider/deployer duties, although it is uncertain whether they will be adopted by August 2026. Employers should continue AI audits, implement human oversight controls, and formalise AI policies to ensure readiness for changes ahead. It will also be prudent to assess training requirements for staff who will be involved in assessing AI outputs and address any skills gaps in this regard.

Statutory sick pay and national minimum wage changes

Statutory sick pay rose to five days in 2024 and further anticipated increases to seven days in 2025 and ten days in 2026 were paused indefinitely in April 2025. WRC claims, however, have increased around scheme comparability disputes, with employees challenging whether employer schemes are “more favourable” than the statutory baseline.

The national minimum wage increased to €13.50 per hour from January 2025 and was further increased to €14.15 from 1 January 2026. The USC 2% band ceiling also increased to €28,700, requiring payroll configuration updates and cost planning, particularly in labour intensive sectors.

Changes to the Employment Permits system – increase to remuneration thresholds

In December 2025, the Department of Enterprise, Tourism and Employment announced a roadmap to implement extensive changes to the employment permits system beginning from March 2026. We wrote about these changes here.

What else may happen in 2026?

Other developments to note include the Employment Law Review Group's work programme for 2025-2026, which is set to review the determination of employment status, unfair dismissals legislation, and statutory notice periods. We look forward to hearing their proposals.

The government’s Autumn Legislative Programme for 2025 included various draft bills which merit close observation in 2026 including the Equality and Family Leaves (Miscellaneous Provisions) Bill 2025 which would add socio economic status to Ireland’s equality framework. This Bill will also provide for Surrogacy Leave and leave for pregnancy loss. Revised Heads of Bill are currently in preparation but we do not have any indicative timescale for their publication yet.

Finally, the WRC reported a 278% increase in protected disclosures complaints in 2025, a trajectory that may continue in 2026.

In summary

There was plenty for employers to consider in terms of employment law developments last year, and with further developments at both an EU and local level this year and beyond, employers should continue to review current policies and practices and adapt accordingly to stay ahead.