Mary Brassil, Donal Hamilton and Eleanor Cunningham

2026 is set to be another significant year for Irish employment law, with important developments in pay transparency, retirement, and equality on the horizon. This briefing outlines the key developments employers should watch out for in 2026.

EU Pay Transparency Directive

One of the most anticipated developments in 2026 is the implementation of the EU Pay Transparency Directive, which aims to strengthen employees’ ability to challenge unequal pay for equal work or work of equal value.

With a transposition deadline of 7 June 2026 looming, the Heads of a Pay Transparency Bill to transpose the Directive are being prepared.

Given its significant implications many employers are already taking steps to review pay structures, classification systems, and data collection processes to prepare for the Directive’s implementation.

Gender pay gap reporting

2025 was the first year in which employers with 50 or more employees were required to publish their annual gender pay gap data on their website (or otherwise make it publicly available). Using a June pay snapshot date, such employers were required to publish their report by the end of November last.

In 2026, legislation is expected to amend the Gender Pay Gap Information Act 2021 to introduce a centralised national portal for mandatory reporting of gender pay gap reports. The Government’s Legislation Programme for Spring 2026 confirms that Heads of a Bill are in preparation.

Contractual retirement ages

The Employment (Contractual Retirement Ages) Act 2025 was signed into law on 16 December 2025. The provisions of the Act have not yet been commenced.

An updated Code of Practice providing practical guidance for employers on managing notifications and responses is also expected from the Workplace Relations Commission (WRC).

Once commenced, where a contractual retirement age is lower than the state pension age (currently 66), employees may notify their employer that they wish to continue working, and employers must provide a reasoned written response objectively justifying the contractual retirement age.

Employers should also be aware that the Normal Pension Age under their occupational pension scheme (the date pension commences) may differ from the contractual retirement age, and both should be reviewed together.

In advance of the commencement of the Act, employers should take active steps to review retirement clauses and prepare internal procedures. For more information, please see our briefing here.

Minimum Wage and Living Wage

From 1 January 2026, the national minimum wage increased to €14.15 per hour. In 2025, the Government deferred replacing the minimum wage structure with a higher statutory “living wage” until 2029, citing economic conditions and the need to support business resilience and competitiveness.

Revised Code of Practice on Access to Part-Time Working

An updated Code of Practice on Access to Part-Time Working, prepared by the WRC, has been signed into law to promote greater flexibility and inclusivity in the labour market.

The updated Code provides practical guidance for agreeing part-time work arrangements that reflect modern workplace needs and underlines the Government’s commitment to enhancing flexible working options and labour-market participation, particularly for parents, carers, older workers and students.

The updated Code also encourages employers to review internal policies and publish gender-balanced data on the uptake of flexible working.

Collective bargaining

In late 2025, the Government published an ‘Action Plan to Promote Collective Bargaining (2026–2030)’, aligned with the requirements of the EU Adequate Minimum Wages Directive.

The Action Plan seeks to increase collective bargaining coverage primarily through encouragement rather than enforcement, consistent with Ireland’s voluntary industrial relations model.

Platform Workers Directive

The EU Platform Work Directive (Directive EU 2024/2831), adopted in October 2024, must be transposed into Irish law by 2 December 2026.

It introduces enhanced protections for individuals working through digital labour platforms, including a rebuttable presumption of employment status where direction and control exist, and substantial protections governing algorithmic management and data processing.

Digital platform operators (e.g., gig economy intermediaries) should review contractual arrangements and data practices to mitigate misclassification and compliance risks.

Auto-enrolment pension (My Future Fund)

From 1 January 2026, the “My Future Fund” auto-enrolment pension scheme began for employees aged 23–60 earning over €20,000 who are not already in a qualifying pension.

Employee and employer contributions begin at 1.5 per cent each, rising gradually to six per cent over 10 years, with additional State contributions.

Employers with existing occupational pension schemes should note that minimum contribution levels to those schemes must match or exceed specified rates to avoid triggering enrolment into My Future Fund.

The scheme aims to bring over 750,000 workers into retirement savings for the first time, with contributions starting from the first 2026 payroll.

Employment permit update

Minimum salary thresholds for employment permits will increase in phases from the 1 March 2026, applying to both new and renewal applications as part of a gradual roadmap extending to 2030.

Proposed thresholds include €36,605 for General Employment Permits and €40,904 for Critical Skills Permits, with higher thresholds for certain agri-food and care roles.

These changes aim to balance worker protection with business needs.

European Works Council (EWC) Directive – revised rules

In October 2025, the EU agreed a revised European Works Council (EWC) Directive to strengthen worker representation in multinationals with cross-border operations.

The Directive clarifies when transnational matters trigger consultation and enhances EWC’s access to justice and resources.

Although the transposition deadline for the Directive is not until 1 January 2028, multinationals operating in Ireland should assess their existing EWC arrangements now.

Upcoming changes in equality law

Following pre-legislative scrutiny in October 2025 of the General Scheme of the Equality and Family Leaves (Miscellaneous Provisions) Bill by the Joint Committee on Children and Equality — the draft of which was published in January 2025 — significant revisions to Irish equality law are anticipated.

Expected measures include the transposition of aspects of the EU Pay Transparency Directive affecting recruitment, such as a ban on salary history questions and a requirement to include pay rates or ranges in job advertisements, as well as an extension of the time limit for bringing employment equality claims from six to 12 months.

The Bill is also expected to introduce new statutory leave entitlements, including in respect of bereavement and pregnancy loss, although the precise scope of these provisions has yet to be confirmed.

Artificial intelligence (AI) and employment litigation

The growing use of generative AI in workplace processes and litigation has raised concerns around accuracy, data protection and accountability.

In Fernando Oliveira v Ryanair, the WRC highlighted these risks after identifying phantom citations and irrelevant claims in submissions that may have been AI-generated.

The WRC has since, in its recently published guidance, confirmed that parties remain fully responsible for AI-assisted submissions, and must ensure content is accurate, legally sound, verified against Irish law, and free of sensitive data.

Employers should exercise caution when using AI tools and ensure appropriate human oversight and governance remain in place.

Mary Brassil, Donal Hamilton and Eleanor Cunningham are partners at McCann FitzGerald LLP.