Recent and Upcoming Changes

Below is a list of recent employment law changes. In addition to the below, there will be changes as a result of case law. Below you will find highlights of employment law changes from the previous year.

Small Benefit Exemption 

The annual limit for Small Benefit Exemption is increasing from €1,000 to €1,500 and employers will be permitted to grant up to 5 single non cash benefits (capped at a value of €1,500)  in a year. 

Payment of Wages Act 

Tips, gratuities and service charges are commonly associated with the hospitality, tourism, hairdressing, taxi and delivery services, amongst others. Since 1 December 2022, the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 introduced new rules as to how employers will have to share tips, gratuities and service charges amongst employees. It will also make it illegal for employers to use these to form part of the basic wages.

Some key points:

• Employers cannot use tips and gratuities to ‘make up’ contractual rates of pay
• Employers cannot make a deduction from a person’s wage in relation to tips and gratuities.
• Workers are legally entitled to receive electronic tips and gratuities and they must be distributed in a fair manner.
• The employer must provide a statement to workers showing the amount of tips obtained in a period and the portion paid to the individual employee for that particular period.
• An employer cannot retain any share of electronic tips. However, there may be circumstances e.g., to pay tax, or bank charges arising from providing electronic modes of tipping, or only where the employer regularly performs to a substantial degree the same work performed by some or all the employees, where such an amount may be deducted that is fair in the circumstances.
• Businesses must clearly display their policy on how tips, gratuities and service charges are distributed.
• “Platform workers”, who are not direct employees, are included.
• Any charge called a “service charge” or anything that would lead a customer to believe it is a charge for service, whether received electronically or by any other means, will have to be distributed to staff as if it were a tip or gratuity received by electronic means.

While employers will be required to include detail on how cash tips are dealt with when displaying their policy towards tips and gratuities, there will be no other regulation of cash tips. Should you require further information on the amendment or have the opportunity to discuss this amendment in relation to your business please contact Cintra HR and Payroll Ireland Limited.  

Statutory Sick Pay Scheme

The Sick Leave Act 2022 was signed into law on 20 July 2022, employers will be legally required to pay statutory sick pay (subject to the colleague meeting eligibility requirements) from 1 January 2023. This is as follows.  

• Pay sick leave for up to 5 days in 2024, 7 days in 2025 and 10 days in 2026.
• A rate of payment for statutory sick leave of 70% of normal wages to be paid by employers (up to a maximum €110 per day).
• A right for workers to take a complaint to the Workplace Relations Commission where they are not provided with a company sick pay scheme.
• To be entitled to paid sick leave under the new scheme, employees must be working for the employer for at least 13 weeks and be certified by a GP as unfit to work.

Employees meeting the above criteria will be entitled to sick payment from 1 January 2023. 

The National Minimum Wage is (Subject to meeting age eligibility criteria) from January 2024

Following the budget on 1 October 2024 the minimum wage will increase to 

Mandatory training

Mandatory training or training that the company requires an employee to complete must be paid for by the company, completed in work time or where this is not possible the times should be compensated. 

Probation Periods

Changes in probation rules have ensured that Company's must be vigilant in relation to apply proper procedures within the probation period, as it is only in exception circumstances, (that will be beneficial to the employee) that the probation period can be extended past 6 months, and in any event is never extended more than 11 months. 

Medical Care Leave 

The Worklife Balance and Miscellaneous Provisions Act 2023 provides for 5-days unpaid leave for parents of children under 12, and carers to manage serious medical care for a child or other relevant person. Where possible the employee should give notice, however employees may find themselves with unforeseen circumstances to manage at short notice. Employees should report their absence and complete the relevant documentation outlining the following.

• Start date for the leave.
• Length of the leave
• Information as to why they require they leave.

This must be provided as soon as reasonably practicable and no later than the day they return to work. Employees will be required to provide GP certification relative to the medical condition or other documentation as deemed relevant.   

Domestic Violence Leave

The Worklife Balance and Miscellaneous Provisions Act 2023, provides for 5 days paid leave for any employee, or employee's relevant or dependant person that has or is experiencing domestic violence and need time off work to access supports. Domestic violence leave shall consist of one or more days on which, but for the leave, the employee would be working in the employment concerned but shall not exceed 5 days in any period of 12 consecutive months.

This support will came into effect in Autumn 2023 and the 5 days will be paid.  

Separate to the usual flexible working arrangements or carers leave, The Worklife Balance and Miscellaneous Provisions Act 2023 provides for the right for relevant parents and carers to request flexible working arrangements for caring purposes.

Flexible Working Arrangements for caring purposes

Employees have a right to request a flexible working arrangement for the care of a child, spouse or civil partner, a cohabitant, a parent, a grandparent, a sibling, and any person who lives in the same household.

For the purposes of the Act, a child must be less than 12 years of age or 16 years if the child is suffering from a disability or long-term illness.

The criteria for requesting a flexible arrangement will be the same as those for the right to request remote work and is as follows.

• Employees must have at least 6 month’s service completed before they are entitled to request a remote working arrangement.
• They must submit the proposed arrangement 8 weeks before the proposed commencement date.
• The employer must respond to such a request within 4 weeks, this timeframe can be extended to 8 weeks.
• The employer is obliged to provide a notice in writing informing the employee of the reasons for refusal if this is the case.
• The employer is obliged to consider the employee's needs, the business’s needs, and the requirements of the code of practice upon receipt of a request.
• The employer can terminate the flexible working arrangement in certain circumstances if they are satisfied that the arrangement is having a substantial adverse effect on the operation of the business.

Employees are afforded protection from penalisation for proposing to exercise their entitlement to make a request under the Act.