HR Legal Risks & Legislative Changes: What Irish Employers Need to Know in 2025
As the workplace continues to evolve, so too does the legal landscape that governs it. Orbitus HR summarises some recent changes.
As the workplace continues to evolve, so too does the legal landscape that governs it. For HR professionals and business leaders, staying ahead of legislative changes isn’t just about compliance, it’s about protecting your people, your reputation, and your bottom line.
At Orbitus HR, we help organisations navigate the complexities of employment law with confidence, combining strategic HR insight with the legal and tax expertise of the Orbitus Group.
Key HR Legal Risks for Irish Employers
- Non-Compliance with Statutory Leave Entitlements
Recent additions like domestic violence leave and medical care leave require updates to policies and payroll systems. Failure to implement these correctly can lead to penalties and employee disputes. - Improper Handling of Disciplinary Procedures
Unfair dismissal claims often stem from procedural errors. Employers must ensure that grievance and disciplinary processes are fair, documented, and legally sound. - Data Protection Breaches
Under GDPR and the Irish Data Protection Act 2018, mishandling employee data—whether through poor storage, unauthorised access, or lack of consent—can result in significant fines and reputational damage. - Misclassification of Employment Status
Incorrectly categorising contractors or casual workers as employees (or vice versa) can trigger tax liabilities and legal claims. Clear contracts and role definitions are essential. - Inadequate Documentation
Outdated or missing employment contracts, handbooks, and policies leave businesses vulnerable. Regular audits are key to maintaining compliance.
Recent & Upcoming HR Legislation in Ireland (2025 & 2026)
Pension Auto-Enrolment – My Future Fund
Launching in January 2026, the scheme will automatically enrol employees aged 23–60 earning over €20,000 per annum who aren’t already in a pension plan. Employers must prepare for contribution requirements and opt-out protocols.
Gender Pay Gap Reporting
The reporting threshold dropped to employers with 50+ employees in June 2025, and a new reporting portal is to be introduced in November 2025, increasing the scope of compliance. Businesses must prepare structured reporting and internal reviews of pay equity.
Statutory Sick Pay
Currently set at 5 days per year at 70% of wage (max €110 per day), the planned increase to 7 days has been delayed but remains on the horizon.
Maternity Leave Deferral
Since November of 2024, new provisions allow employees who fall seriously ill during maternity leave to defer their leave for up to 52 weeks, offering greater flexibility and protection.
EU Pay Transparency Directive
The Directive is due to be transposed into Irish Law by June 2026. Employers will be required to provide structured pay data and ensure transparency in recruitment and compensation practices. This will impact job ads, salary bands, and internal reporting.
EU AI Act Compliance
The European Artificial Intelligence (AI) Act officially came into force on 1 August 2024, with most provisions becoming applicable from 2 August 2026. However, rules on prohibited AI practices and AI literacy are already in effect. HR teams using AI tools for recruitment, performance management, or workforce analytics must ensure compliance with new EU regulations around fairness, transparency, and bias mitigation.
Restrictions on NDAs
Effective from November of 2024, new limits on non-disclosure agreements related to discrimination, harassment, or victimisation may require updates to settlement and confidentiality clauses.
Orbitus HR: Your Compliance Partner
Orbitus HR offers practical, people-first solutions backed by legal and tax expertise. From policy audits to strategic planning, we help our clients stay.
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