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What do you need to do to prepare for April’s employment law changes?

HR Dept

From auto-enrolment pensions to increased transparency obligations around employee pay, it’s set to be a busy year for businesses across Ireland.

To ensure operations continue to run smoothly, you’ll need to approach the year with a level of planning and coordination.

So first, let’s remind you of the changes being implemented across 2026, and then explore the actions that should be at the top of your to-do list for the year ahead.

 

Upcoming changes in employment law for 2026

For most businesses, there are several immediate changes. As is the case every year, this includes a rise in the national minimum wage. In 2026 it’s plus €0.65, reaching a total of €14.15 per hour, which came into place from the 1st January.

 

Then, in addition we have:

  • The introduction of auto-enrolment pensions for employees, with you and them initially contributing 1.5% of their salary each year.
  • Increased (EU) transparency obligations, including enhanced employee rights to request pay information, from 7th January.

Remaining the same, or delayed:

  • Statutory sick pay will remain at five days per year, with wages being paid at 70%, and a cap of €110 per day.
  • Key provisions of the (EU) AI act are likely to be delayed until late 2027 to ensure technical standards are fully developed.

Other things to keep an eye on:

  • Plans to improve public awareness and further research benefits of collective bargaining and union membership.
  • An opportunity to notify the Revenue Commission by 26th January of any mistakes treating employers as contractors between 2022-2024.
  • All workers operating through a digital platform, under employer direction and control must be considered employed by 2nd December.

You can find further information on any of these topics by reading this article which we published two weeks ago.

 

Your HR compliance to-do list

It is helpful to plan for changes like these through four core areas.

 

Budget planning

Although for many SMEs budgets are already tight, these changes will have an impact – from meeting the new minimum wage bands to considering the introduction of the Auto-enrolment pension scheme. This includes a 1.5% of salary contribution from you and your employee, a rate that will increase over the years until it reaches 6% ten years from now. Make sure you sit down and look at the numbers now in good time, so that you do not face any nasty surprises later on in the year.

Policy reviews

Employee pay transparency, collective bargaining and changing worker classification for remote employees are just three of the changes which may impact your policies. More changes may come in the following weeks, so it is a good time to sign up to our retained Advice Line service where, as well as unlimited telephone and email advice, you also have all your policies updated on your behalf to remain compliant (once all the changes are confirmed).

Ensuring compliance

It is one thing you as the business owner being aware of the upcoming changes, but just as important is making sure that the knowledge and procedural requirements trickle down your chain of command. Think now about the actions or systems you will need to implement to make it all happen correctly.

Absence management training

The sick pay regime is still relatively new in Ireland. If you haven’t already, now is a good time to make sure you have a robust absence management process in place. This will help you stay in control of absences so that your staff know you take it seriously, even if it is easier for them to receive sick pay. If you need help formulating a policy or training managers, we can help.

 

By your side

2026 is going to be a challenging year for SME employers. Rest assured that we are by your side, with a local office never too far away, to help you when you need it; either with one-off services or our retained Advice Line.

Contact your local HR experts