PENSIONS: AUTO ENROLMENT
The long-awaited Automatic Enrolment Retirement Savings System Act 2024 has been signed into law by the President. This Act will impact every business in the country which has employees. The Act provides for a new retirement savings scheme for workers who are not already members of a pension scheme. It aims to increase pension coverage and overall pension adequacy in Ireland. A commencement order is required before the Act can come into effect. The Government has indicated that it expects first enrolments to happen in 2025.
Employers should begin preparing for auto enrolment. The main initial step is to undertake a gap analysis of the workforce to see who is covered by a pension arrangement and who is not. Employers then need to decide whether they want (i) to include all employees in their occupational pension scheme, (ii) the AE system to apply to all employees, or (iii) to operate both systems in tandem for different cohorts of employees. Once this decision is taken, employees will need to take a number of steps to prepare for AE going live, including reviewing contracts of employment and relevant employment policies and potentially amending existing pension arrangements.
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ACT ENHANCING PROTECTION FOR EMPLOYEES AFFECTED BY INSOLVENCY ACT
On 1 July 2024, the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 was commenced. The Act amends the existing collective redundancy regime in insolvency situations and delivers on key Programme for Government commitments detailed in the Plan of Action – Collective Redundancies following Insolvency. For more on the new Act, see our update here.
An employer proposing a collective redundancy must notify the Minister for Enterprise, Trade and Employment at least 30 days before the first redundancy occurs. The notification to the Minister must contain certain information which is outlined in Protection of Employment Act 1977 (Notification of Proposed Collective Redundancies) Regulations 2024.
The Department of Enterprise, Trade and Employment has also published a template form that you can use to help ensure that all information required by law is provided in the notification to the Minister: Notification of Proposed Collective Redundancies (Form CRN1).
Notifications can be submitted electronically to minister@enterprise.gov.ie. Alternatively, they can be submitted in hard copy by registered post or by hand to: Office of the Minister for Enterprise, Trade and Employment, 23 Kildare Street, Dublin 2, D02 TD30.
EMPLOYMENT PERMITS ACT NOW LAW
The Employment Permits Act 2024 has been signed into law. The new legislation will repeal prior Employment Permit laws and make a series of changes, including the introduction of a seasonal employment permit and the revision of the labour market needs test to make it more relevant and efficient. It is also intended to reduce, from twelve months to nine, the time a migrant worker must wait until s/he can move to a different employer. A commencement order is required before the Act will come into effect. For more, see our update here.
UPDATES TO GENDER PAY GAP REPORTING REGIME FOR 2024
From 31 May 2024, employers who employ not less than 150 employees (previously 250 employees) come into scope for gender pay gap reporting in Ireland. All in scope employers must choose a snapshot date in June and report within six months of that date. Employers should also note that the 2024 Regulations make a number of other changes to how gender pay gap reporting is done, including the formula for calculation of working hours, the treatment of share options and interest in shares, and payments made to employees while on adoptive, maternity, paternity and parent's leave. For more, see our update here.
EXTENSION TO PARENT'S LEAVE
Parent's leave is being extended to nine weeks from 1 August 2024. Currently, parent's leave entitles each parent to seven weeks' leave during the first two years of a child's life, or in the case of adoption, within two years of the placement of the child with the family. If an employee qualifies for Parent's Benefit, they will receive €274 per week. For more, see our update here.
MORE LEGISLATION IMPACTING EMPLOYEES IN INSOLVENCY SITUATION PROPOSED
The Government published the Protection of Employees (Employers' Insolvency) (Amendment) Bill 2024, intended to amend the Protection of Employees (Employers' Insolvency) Act 1984 (which covers employees' pay-related entitlements in the event of their employer's insolvency). The Bill will make changes to the Insolvency Payments Scheme, which protects employees' pay-related entitlements if their employer becomes insolvent. For more, see here.
CIF ISSUES UPDATED CIRCULAR ON SICK PAY
Agreement was reached between the CIF and the ICTU on sick pay for construction workers, based on WRC proposals which were accepted by both parties. Under the terms of the new circular, from 1 July 2024, the employer's contribution to the Construction Workers' Sick Pay Trust increases from €1.27 per worker per week to €2.37 per worker per week. The employee's contribution will remain at 63c per week. The general terms of the agreement reached are as follows:
- No payment for the first three days of illness/injury i.e. the current three-day waiting period remains in place.
- Sick pay benefit to be paid from the fourth day of illness to a maximum of 50 days.
- The current benefit of €48 per day will increase to €125 per day for five days. Thereafter a benefit of €50 will apply.
- Medical certification must be provided. Only medical certificates accepted by the Department of Social Protection will be accepted by the CWPS Sick Pay Scheme.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.