Employment Legislation Changes in Ireland 2024

Navigating Changes in Worker Protections: A Guide for Employers in 2024

As we step into 2024, Irish employers are gearing up for a series of changes in worker protections that demand attention and strategic planning. From salary adjustments to remote work requests, staying ahead of these changes should be a priority for businesses across the country.

Let's break down what these changes mean for employers:

1. National Minimum Wage Boost

Effective January 1, 2024, the national minimum wage for employees aged 20 and above will jump from €11.30 to €12.70—a notable 12% increase. This hike may impact your bottom line, so it's wise to conduct cash flow forecasts to gauge its effect. Even if your team is already above the minimum wage, be prepared for possible requests for salary adjustments in line with the new baseline.

Ensure your payroll system is updated, and communicate these changes to affected employees.

2. Planned Living Wage Introduction

Over the next few years, the minimum wage will gradually increase until it transforms into a living wage by 2026. The living wage, set at 60% of the median wage, will replace the national minimum wage. Employers should forecast and review employee salaries to align with this shift and ensure sustainable business practices.

3. Extended Sick Pay Entitlements

Starting January 1, 2024, paid sick leave entitlement expands from three to five days. Keep in mind that this applies to all employees, regardless of their work hours. Businesses may need to plan more extensively for sick leave cover and accommodations. Don't forget to update your employee handbooks to reflect these changes.

4. Enhanced Parents’ Leave and Benefits

From August 2024, parents' leave gets a two-week extension, increasing the entitlement from seven to nine weeks. Employers should be proactive in workforce planning, as employees are required to give six months' notice before starting parents' leave.

5. Right to Request Remote Working

Employees with at least six months of service now have the right to request remote work. For businesses not yet operating a remote work policy, serious consideration is needed for such requests. Responding within four weeks (eight if necessary) is crucial, considering both business and employee needs.

Keep an eye out for a code of practice from the WRC, and make use of the Irish government's remote working checklist.

6. PRSI Increase

From October 2024, there's a 0.1% increase in PRSI. While relatively low-touch for employers, it's essential to ensure your payroll software reflects this change.

7. Auto-Enrollment Pension Scheme

Starting September 2024, employees earning above €20,000 (between 23 and 60 years old) will be automatically enrolled in a pension scheme. Employers need to match contributions, with the state providing additional support. Regularly review payroll systems, contracts, and communications to ensure compliance with the scheme.

8. Increased Cost of Business Grant

Smaller businesses facing rising costs can access the Increased Cost of Business grant through local authorities. Those who've paid up to €10,000 in rates will receive a one-off grant equivalent to 50% of the bill. Connect with your local authority and provide bank details for grant disbursement, expected in the first quarter of 2024.

In Conclusion

Preparation is key. Employers should engage in proactive workforce planning, conduct thorough analyses, and implement necessary updates to systems and policies. Starting preparations early ensures a smoother transition, helping businesses understand the impact of increased protections on their operations. Here at Grow Financial Planning, we have the team and tools to help you prepare for these changes, ensuring you a solid foundation for growth in 2024.