13/04/2026

As we close out the first quarter of 2026, several noteworthy legislative and regulatory changes have already taken effect, with more anticipated as the year progresses. Below is a summary of the main updates that Members should note.

LEGISLATIVE UPDATES 

Pension Auto Enrolment

From 1 January 2026, Ireland’s new Pension Auto‑Enrolment scheme (My Future Fund) officially launched. Eligible employees aged 23–60, earning €20,000+ and without an existing workplace pension were automatically enrolled.

Initial contributions started at 1.5% from employees, matched by 1.5% from employers, with an additional 0.5% State top‑up. The scheme is centrally administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA) and is designed to improve retirement savings alongside the State Pension.

Employees must remain in the scheme for six months before they can opt out, with contribution rates set to increase gradually over time.

Employers who already operated a qualifying workplace pension before January 2026 were not required to auto‑enrol those members into My Future Fund.

• Employees actively contributing to an existing scheme were excluded from auto‑enrolment
• Existing schemes had to meet minimum contribution standards(including an employer contribution)
• Employers needed to assess their workforce, identifying which employees were covered and which were not
• Employees not in the existing scheme (or not eligible to join it) were auto‑enrolled into My Future Fund

As a result, many employers now operate dual arrangements: an existing pension scheme for some employees, alongside My Future Fund for others.

National Minimum Wage

From 1 January 2026, the National Minimum Wage increased to €14.15. This change signals the Government’s ongoing intention to move towards a living wage, and it carries immediate implications for both costs and compliance across all employers.

Employment Permit Salary Thresholds

Effective 1 March 2026, minimum salary thresholds for employment permits have risen. General Employment Permits now require a minimum salary of €36,605 (up from €34,000), while Critical Skills Employment Permits demand €40,904 (previously €38,000).

Remote Working

The Government’s public consultation on remote working closed on 9 December 2025, drawing over 8,000 submissions—primarily from employees. The statutory review that followed confirmed a 94% approval rate for employee requests (either in full or in part) and found the legislation is functioning well, contrary to some media reports. Employers report a manageable administrative burden, but the review highlighted low awareness and uptake, especially in rural areas. To address this, the Government will launch a targeted national awareness campaign. The Workplace Relations Commission has also been asked to revise and strengthen the Code of Practice, providing clearer guidance and practical templates. No legislative amendments are planned at this stage.

Employment (Contractual Retirement Ages) Act 2025

The Employment (Contractual Retirement Ages) Act 2025 will, when enacted, enable employees to formally notify their employer that they do not consent to retire at the contractual retirement age if it is below the State Pension Age (66).

The Act was signed into law on 16 December 2025. No commencement date has been set. It will only come into force once the government issues a commencement order. A Code of Practice is expected, and commencement is anticipated after its publication.

Employees will be entitled to notify their employer if they do not consent to retire at a contractual retirement age below 66, with employers required to objectively justify any lower retirement age and issue a reasoned written response within one month, failing which claims may arise before the Workplace Relations Commission and, in some cases, criminal penalties may apply.

Employers should prepare for new notification-handling procedures for employees wishing to work until 66, ensure they can objectively justify any contractual retirement age below 66, and update policies, contracts, and HR processes ahead of the Act’s commencement.

 Pay Transparency Directive

The Government has acknowledged that Ireland will miss the 7 June 2026 deadline for implementing the EU Pay Transparency Directive, opting for phased implementation instead.

The Department of Children, Equality, Disability, Integration and Youth has clarified that employers won’t be penalised for not having all elements in place by June. The General Scheme of the Equality (Miscellaneous Provisions) Bill 2024, published in January 2025, covers several recruitment-related aspects, such as salary ranges in job advertisements and restrictions on pay history questions. Further legislation will address outstanding obligations, including gender pay gap reporting. Meanwhile, the European Commission has issued updated guidance on gender-neutral job evaluation and classification to help employers prepare for future compliance.

Code of Practice on Access to Part-Time Working (2026)

On 22 January 2026, the Government approved a refreshed Code of Practice on Access to Part-Time Working, replacing the previous version. The updated WRC Code doesn’t create new legal duties but reinforces best practice for handling part-time work requests. It encourages consideration of part-time arrangements at all organisational levels—including senior roles—strengthens protections against penalisation, and underscores the importance of accommodating parents’, carers’ and employees’ medical needs. Employers should proactively assess whether roles can be performed on a part-time basis.

These updates highlight the need for ongoing review of policies, pay structures, and working practices throughout 2026.

CASE LAW UPDATE

1. SK Biotek Ireland Ltd v Shannon Reina (SLD262)– Operation of Statutory Sick Pay 

Background 

The Complainant, a Quality Control Analyst at SK Biotek, worked from August 2023 until her resignation in July 2024. She had several certified sickness absences, including COVID-19 and a work-related injury. SK Biotek operated an internal sick pay scheme whereby after a six-month qualifying period, employees could receive full pay for up to four weeks per year, plus 50% for a further four weeks, subject to compliance with their Absence Management Policy. The Complainant received a verbal warning due to the level of absence and became disentitled to company sick pay.

In May 2024, the Complainant applied for sick pay again and was refused under the company scheme. She then lodged a claim with the Workplace Relations Commission (WRC) under the Sick Leave Act 2022, contending that she was entitled to statutory sick pay when she lost access to the company scheme.

WRC Decision

The adjudicator upheld the Complainant’s complaint. The AO found that she was entitled to statutory sick leave, despite the employer withholding sick pay under its own policy. The Respondent appealed to the Labour Court.

Labour Court Decision 

The Labour Court examined whether SK Biotek’s more generous internal scheme exempted it from statutory obligations under section 9(1) of the Sick Leave Act. The court confirmed that:

• Both parties agreed SK Biotek’s scheme was, as a whole, more favourable than statutory rights.
• Eligibility conditions or disciplinary disqualifications were not relevant to the exemption analysis.
• Section 9(1) provides an absolute exemption from statutory sick pay, even if the employee becomes ineligible due to disciplinary action.

The Labour Court overturned the WRC’s award and ruled that SK Biotek had no obligation to provide statutory sick pay, setting aside the €500 compensation.

Key Takeaways for Employers

This decision confirms that employers may lawfully apply conditions to their occupational sick pay schemes. Where an employee does not qualify for company sick pay, there is no obligation to pay statutory sick leave provided the company scheme is exempt under section 9 of the Sick Leave Act. While the outcome may be viewed as harsh (particularly given that the complainant’s absences were certified and gen) it aligns squarely with the statutory framework. The Act makes clear that contractual sick pay and statutory sick pay do not operate in parallel; entitlement is to one or the other. As the Labour Court stated, section 9 “admits of no exceptions to this exemption and does not confer any discretion on this Court to imply any such exception into it.”

1. Mick Kiely v Hyph Ireland Ltd (ADJ-00037708) – Constructive Unfair Dismissal. 

In a landmark decision, the Workplace Relations Commission (WRC) has made the highest unfair dismissal award in its history, granting compensation of approximately €464,000 to a former senior executive.

Background 

The Complainant , Mr Mick Kiely, the founder, CEO and chairperson of Hyph Ireland Ltd (formerly Xhail Ireland Ltd), was dismissed in November 2021 without notice or any disciplinary or dismissal procedure. His employment was terminated abruptly by email, and he was immediately locked out of company systems.

WRC Decision

The WRC found that the employer had failed entirely to follow fair procedures, amounting to a clear breach of the Unfair Dismissals Acts. The adjudication officer rejected the employer’s justification for the dismissal and accepted that Mr Kiely had been denied basic procedural fairness.

In assessing compensation, the WRC placed significant weight on:

• Mr Kiely’s senior executive role and high remuneration
• The absence of any warning or due process
• A restrictive non‑compete clause, which substantially limited his ability to mitigate his losses by obtaining alternative employment

The WRC awarded €440,000 for loss of earnings, and €24,000 in pay in lieu of notice, bringing the total award to €464,000.

The case has attracted considerable attention as it illustrates the potential scale of exposure for employers, particularly where senior employees are dismissed without due process. It also serves as a stark reminder that failures in procedure alone can justify substantial compensation, even where an employer believes there were substantive grounds for dismissal.

3. O ‘Connell v National Council for Special Education (ADJ‑00042837) – Disability Discrimination, WRC Lifts Statutory Cap in Non- Appointment Case

In a recent Workplace Relations Commission (WRC) decision, Noel O’Connell v National Council for Special Education (ADJ‑00042837), the WRC found that the National Council for Special Education (NCSE) had indirectly discriminated against a deaf applicant in a recruitment process. The case is particularly noteworthy as the Adjudication Officer disapplied the statutory €13,000 compensation cap for access‑to‑employment discrimination claims, instead awarding €40,000 in compensation.

Background

In March 2022, the complainant—who is deaf and a native user of Irish Sign Language (ISL)—applied for the role of Advisor Deaf/Hard of Hearing (ISL) with the NCSE. Eligibility criteria included holding a formal ISL qualification and demonstrating excellent oral communication skills. As is common for native sign language users, the complainant did not hold a formal academic ISL qualification, and the application was rejected.

Following an internal review, the NCSE accepted that the complainant met the essential criteria for the role. However, the recruitment process for the role was not reopened and no remedy was offered.

Decision

The Adjudication Officer held that the NCSE’s requirements amounted to indirect discrimination and that the complaint was well founded. In considering redress, the Adjudication Officer examined section 82(4) of the Employment Equality Act 1998, which caps compensation at €13,000 in access‑to‑employment cases.

The Complainant successfully argued that this cap conflicted with EU law—specifically Article 17 of Directive 2000/78, which requires sanctions to be effective, proportionate and dissuasive. Reliance was also placed on Case C‑378/17 (Minister for Justice and Equality v Workplace Relations Commission), where the CJEU confirmed that bodies such as the WRC must disapply national provisions that are incompatible with EU law.

Applying these principles, the Adjudication Officer disapplied the national compensation cap and awarded €40,000.

Key takeaway for employers

This decision signals a clear willingness by the WRC to set aside domestic compensation limits where they fall short of EU law requirements. Employers should be prepared for robust challenges to the €13,000 cap in access‑to‑employment discrimination claims and, potentially, arguments seeking to disapply other statutory compensation caps where more effective and dissuasive remedies are deemed necessary.