Ireland: Key Updates for 2025

Employers in Ireland need to stay informed about important regulatory changes that will impact their operations in 2025. From the minimum wage increase to new leave entitlements and changes in employment law, being prepared is key to ensuring compliance and smooth operations in the year ahead.

Here’s a breakdown of the key updates:

1. National Minimum Wage Increase: Effective January 2025

Ireland’s national minimum wage is set to rise on January 1, 2025. This increase impacts hourly wage rates and is part of the ongoing efforts to improve workers’ compensation across various age groups.

New Minimum Hourly Rates:

• Aged 20 and above: €13.50
• Aged 19: €12.15
• Aged 18: €10.80
• Under 18: €9.45

The minimum wage applies to all workers, except those covered by an Employment Regulation Order (ERO), which sets specific wage rates for workers in certain sectors. The gross wage, including base salary, shift premiums, bonuses, and service charges, will be factored in when calculating the minimum wage.

2. Statutory Sick Pay (SSP): An Increase in Entitlement

Starting in 2025, Statutory Sick Pay will increase from 5 days to 7 days per year. This entitlement will rise further to 10 days in 2026. Employers should prepare for this change to ensure they are compliant with the updated regulations.

3. Parent’s Leave Extension: Effective August 2024

Parent’s leave will increase from 7 weeks to 9 weeks for children born or adopted after August 1, 2024. Employees can claim the additional 2 weeks of leave if their child was under the age of 2 as of August 1, 2024 or if they adopted a child less than 2 years ago on the same date. Parent’s Benefit has also increased to 9 weeks for each parent, provided they qualify.

4. Changes to Non-Disclosure Agreements (NDAs)

The Maternity Protection, Employment Equality, and Preservation of Certain Records Act 2024 introduced important changes regarding the use of NDAs in cases involving allegations of discrimination, harassment, or sexual harassment. NDAs that prevent employees from disclosing such allegations are now void unless they meet specific criteria, including the employee requesting the NDA and receiving independent legal advice at the employer’s cost.

Key NDA Requirements:

• The NDA must be clear, understandable, and offer an unlimited duration unless the employee opts for a shorter period
• It must allow employees to withdraw from the NDA within 14 days
• The NDA must permit disclosures to law enforcement, legal professionals, and relevant authorities without penalty

5. Employment Permit Legislation Changes

The Employment Permits Act 2024 introduces significant reforms, including:

• The introduction of a seasonal employment permit for approved seasonal employers
• The revision of the ‘Labour Market Needs Test’ to focus on online advertising instead of newspaper ads
• Eased restrictions for employment permit holders to change employers

6. Right to Request Remote and Flexible Working: Since March 2024

All employees now have the legal right to request remote working from their first day on the job, provided they have 6 months of continuous service. Additionally, employees who are parents or carers can request flexible working arrangements.

Eligibility for Flexible Working:

• Parents of children under 12, or under 16 if the child has a disability or long-term illness
• Carers providing care to a specified person, including spouses, civil partners, and others in the household

7. Pension Auto-enrollment: Coming in 2025

Pension auto-enrollment is set to be introduced in Ireland in 2025, with the formal system expected to launch in September 2025. Employers should prepare for this significant change, which will affect all eligible employees. Additional information will be released closer to the rollout date.

How HSP Can Help

Navigating these changes can be complex. HSP is here to help you stay compliant and streamline your HR operations:

• Reviewing and updating employment contracts, staff handbooks, and sick pay policies
• Preparing templates and policies for auto-enrollment and flexible working arrangements
• Assisting with changes related to employment permits and leave entitlements

By partnering with HSP, you can ensure that your business remains compliant with these critical updates while minimizing disruption.

Germany: Key Updates for 2025

It’s essential for employers operating in Germany to stay informed about key compliance reminders and upcoming regulatory changes for 2025. From vacation entitlements to wage tax requirements, understanding these updates ensures that your business remains compliant and prepared.

Here’s a breakdown of what you need to know:

1. Vacation Usage: Year-End Obligations

Communicating Vacation Entitlements
Before the end of 2024, employers should have notified employees about any remaining statutory vacation entitlements and the deadlines for using them. Failure to provide timely notice could result in unused vacation entitlements carrying over indefinitely, with the standard 3-year expiration period not beginning.

Key Actions for Employers:

• Encourage employees to use remaining vacation days
• Provide sufficient time for employees to plan their leave, balancing operational requirements
• Document all communication—electronically or in writing—and obtain acknowledgment of receipt

Best Practice:
At the beginning of 2025, inform employees about any carryover vacation entitlements, the total vacation days available for the year, and the relevant deadlines to prevent expiration.

2. Setting Targets and Agreements for 2025

When defining unilateral performance targets or agreements tied to performance-based remuneration, employers must set clear, achievable objectives early in the year. Ideally, this process should occur in January or align with deadlines in employment contracts.

Considerations:

• Document the criteria used to establish targets
• Start consultations early if target agreements require employee involvement

Delays in this process could result in disputes or claims for damages, with employees potentially demanding full bonus amounts if targets are not specified in time.

3. Key Regulatory Changes for 2025

Bureaucracy Reduction Act (BEG IV)
Effective January 1, 2025, the BEG IV simplifies form requirements for employment-related documents. Key updates include:

• Proof of contractual conditions can now be provided via email or other text forms
• Temporary employee leasing contracts no longer require hard copies or qualified electronic signatures
• Reference letters can be issued electronically with employee consent, using qualified electronic signatures
• Notifications regarding working hours can be shared via the company intranet
• Parental leave applications and rejections can now be processed electronically

Statutory Minimum Wage Increase
Starting January 1, 2025, the statutory minimum wage will rise to €12.82 gross per hour.

Health and Long-Term Care Insurance Contributions

• The average additional contribution rate for statutory health insurance will increase from 1.7% to 2.5%
• Long-term care insurance contributions will rise by 0.2 percentage points

Federal Election Rescheduled
Due to the collapse of the “Traffic Light” coalition, Germany’s federal election will now take place on February 23, 2025, instead of September 28, 2025.

4. Wage Tax Compliance: What Employers Need to Know

Germany’s tax regulations on employee benefits are intricate, requiring careful handling to avoid penalties. Taxable benefits include salaries, cash payments, and non-cash benefits such as shares, gifts, and incentives. Failure to adhere to tax filing requirements could result in additional social security contributions.

Key Tax Rules:

• Taxable benefits must be disclosed and filed with tax authorities by the end of February of the following year
• Flat tax rates:
  • 25% for employee benefits (tax-deductible expenses)
  • 30% for client incentives and gifts (non-tax-deductible expenses)
  • 20% for group accident insurance, up to a contribution limit of €119 per person
• Examples:
  • Company events: Tax-free up to €110 gross per person, twice annually
  • Free employee meals: Tax exemption limit is €50 per person per month

Best Practice:
Review all accounting files to ensure proper disclosure and compliance with wage tax requirements.

How HSP Can Help

Navigating Germany’s regulatory landscape can be challenging. HSP provides tailored support to ensure compliance and streamline operations. Our services include:

• Assisting with leave entitlement processes and communications
• Preparing and updating employment contracts and related documentation
• Advising on wage tax compliance and the proper handling of employee benefits

By partnering with HSP, your business can focus on growth while staying compliant with Germany’s evolving regulations.

Staying compliant with evolving employment laws across different jurisdictions is essential for any global business. From new legislation on the right to disconnect in Australia to enhanced protections against workplace stress in Italy, understanding these changes can be challenging.

This update will provide you with a brief overview of the recent employment law changes in Australia, Italy, Poland, Singapore, and the United Kingdom, along with practical steps your organization can take to ensure compliance and foster a supportive work environment.

Employment Law Updates

Australia

From 26 August 2024 employees working for companies with 15 or more employees in Australia have the legal right to disconnect from work outside of their contracted working hours. This legal right is set to extend to employees working for companies with less than 15 employees on 26 August 2025. The new legislation essentially means that employees can refuse to monitor, read, or respond to their employer or a third party outside of work. There are limited circumstances where the right to disconnect would be considered unreasonable but essentially this legislation moves towards ensuring that employees in Australia maintain a healthy work/life balance and address growing incidences of mental health related sickness absence issues.

In response to this new legislation, it is recommended that employers have a right to disconnect policy in place which covers the employee and employer obligations in this regard. HSP can support clients by providing a best practice right to disconnect policy.

Italy

The Italian Supreme Court has made several judgements over recent months that reinforce the employer’s responsibilities and obligations to protect employee’s health and well-being at work. These recent judgements go further as they specifically emphasize the employers’ obligations towards employee’s mental well-being and avoiding employee work related stress.

The Court determined that employers should refrain from any behavior or actions that could harm employee’s mental well-being by creating a stressful working environment. The recent judgements determine that employers are required to refrain and prevent harassment and imposes further obligations on the employer to ensure that they do not make any choices or put in place any initiatives that could cause work related stress.

These recent judgements re-emphasize the importance of employers ensuring they have carried out appropriate risk assessments in Italy, which include any risks associated with mental health and stress and address any actions required on the back of these risk assessments. It is also important that managers continue to regularly check-in with employees and ensure performance management and sickness absence processes are in place that foster a culture of open communication, so employees have opportunity to raise any stress related issues and ensure any issues are dealt with fairly and consistently.

HSP can support clients in ensuring they are meeting with legal obligations in Italy with regards to health and safety and develop locally compliant performance management and sickness absence policies and processes. 

Poland

Poland has adopted the EU Whistleblowing Directive into domestic legislation. The new legislation requires employers to have a Whistleblowing policy and process in place. The process must provide whistleblowers with a clearly defined internal and external channel for reporting whistleblowing issues and outline what the subsequent actions the company would take. The policy also should protect whistleblowers from any retaliation.

HSP can support clients by developing locally compliant Whistleblowing policies and procedures.

Singapore

From December 2024, the Singapore tripartite guidelines for flexible working arrangements will come into effect. The guidelines set out the formal process employers must follow when an employee submits a formal flexible working request.  Typically, these requests will fall into one of the below categories:

1. Flexi-place- where employees request to work from a different location (e.g. hybrid or home working arrangement).

2. Flexi-time- where employee look to carry out their existing duties and working hours flexibly (e.g. compressed hours, flexi hours).

3. Flexi-load- where employees work flexible hours and change their working pattern and workload (e.g. part time working, job share).

Employers should establish a clear, uniform policy and process for employees to submit any flexible working requests and ensure that they meet their obligations as an employer to approve or refuse a request in line with the tripartite guidelines.

HSP can support employers drafting flexible working policies that are compliant with these new guidelines.

United Kingdom

From 1 October 2024, the Workers Protection (Amendment of Equality Act 2010) imposes additional duties on employers to take reasonable steps to prevent sexual harassment of their employees. Key actions that employers will need to put in place include:

1. Sexual Harassment Policies and procedures.

2. Regular training sessions for employees and managers.

3. Appropriate reporting channels.

HSP can support in reviewing any current harassment policies employers have in place as well as provide new policies and procedures and support in developing and rolling out training sessions for employees and managers.

Employment Rights Bill

As outlined in our previous employment law update, the UK Employment Rights Bill was announced during the Kings Speech in July 2024. The new Labour Government states that the Bill will be put into law within the first 100 days in office. The Bill has not yet been passed into legislation, but it is proposed that the following Bill will impose the following:

1. Ban on ‘zero hours’ contracts.

2. Day 1 Unfair Dismissal Rights (currently unfair dismissal rights only apply to employees after two years’ service).

3. Day-one rights on parental leave, sick pay, and protection from unfair dismissal.

4. Unlawful to dismiss a woman who has had a baby for six months after her return to work.

5. Flexible working a right from first day of employment.

Should the Bill pass as expected, employers will be required to make changes to employment contracts, policies, and procedures. Once the changes are confirmed, HSP will be able to support employers through all these changes to ensure future compliance.

As we step into 2024, human resources (HR) leaders are increasingly pivotal in navigating the complexities of global workforce management. Whether you’re looking to take your first steps towards international expansion or aiming to solidify your global presence, understanding the critical HR elements is essential for your success.

Global Expansion Considerations

In 2024, HR will be instrumental in guiding organizations through the complexities of global expansion. As businesses venture overseas, one primary consideration is the choice of employment model—whether to use an Employer of Record (EOR), a Professional Employer Organization (PEO), or set up a legal entity. Each model offers distinct advantages and challenges, which vary by country and jurisdiction. For example, EORs act as the legal employer, handling all employment responsibilities in foreign jurisdictions, which is beneficial for companies without a local entity. In contrast, PEOs, prevalent in the U.S., share employer responsibilities and are suitable for companies with an established domestic legal entity. Understanding these differences and choosing the right model is crucial, as it will affect your organization’s compliance and operational efficiency in the countries and jurisdictions in which you operate.

The Biggest HR Challenges in 2024

HR professionals are set to face numerous challenges in 2024, primarily influenced by the pandemic and other global events. The aftermath of COVID-19 and geopolitical issues like the Ukraine conflict and the cost of living crisis continue to reshape the workforce landscape, impacting global expansion and remote work policies. HR leaders will need to navigate these complexities by maintaining a seat at the executive table to ensure organizational resilience and competitiveness. Key challenges will include managing diverse employee needs with company goals (especially for expats and remote workers), and handling high-stakes negotiations with unions and work councils. Effective talent acquisition and retention strategies will be paramount in supporting your organization’s business and global expansion goals.

The Effect of Digital Nomads on HR

The rise of digital nomads, accelerated by the pandemic, presents unique challenges and responsibilities for HR. Companies must adapt to manage remote employees who may live and work in different jurisdictions. This shift requires HR to accurately track employee locations to ensure compliance with local tax laws and employment regulations. For instance, different countries may have specific requirements for home-working allowances or work permits for foreigners, which can significantly affect an organization’s tax and legal obligations. HR must develop robust policies and systems to manage these aspects effectively, ensuring that all employee data is current and compliant with international standards.

Role of HR in Data Protection and Privacy Laws

With stringent data protection and privacy laws like the GDPR in the EU, HR’s role in ensuring compliance has become more critical than ever. The GDPR, which is the world’s strictest data privacy and protection law, requires organizations to handle personal data with high levels of security and transparency. HR professionals must be deeply familiar with these laws, as non-compliance can result in hefty fines and other penalties for companies of all sizes. HR teams must also manage the flow of employee data across borders, particularly around digital nomads and remote workers. By establishing systems like Human Resources Information Systems (HRIS), HR can better manage and protect employee data, ensuring that personal information is securely handled across all jurisdictions to mitigate any compliance risk.

The Key to HR Success in 2024? Applying the Right Information to Increasingly Complex Global Challenges

In 2024, HR leaders need to be prepared to tackle all types of legal and administrative challenges associated with unforeseen global growth, regulations, and employee mobility. To succeed, HR professionals will need to be creative and proactive in developing policies to manage growth, retain top talent, stay in compliance in every country in which they have a footprint, from digital nomad workers to a legal entity. 

On top of it all, HR professionals will continue acting as trusted internal experts to organizational leaders and key stakeholders. But even HR experts can’t do it all, so leveraging outside expertise will be key for staying on top of the evolving complexities of global expansion. Authored by our Director of HR Consulting, Kathryn Hendy-Ford, our latest eBook, HR Considerations For Your Global Workforce, is designed to equip HR and People leaders with essential insights for managing a global workforce, covering everything from hiring models to compliance in remote work.

HSP is an end-to-end global expansion solutions provider focused on helping companies scale their operations overseas effectively and efficiently. We are the only global expansion expert to offer growing companies a full suite of end-to-end solutions designed to help them scale to any size, in any country. 

Our in-country experts have delivered the full spectrum of global expansion solutions—from EoR to entity set-up and management—across more than 100 countries (and counting). HSP brings full payroll, accounting, tax, legal, compliance and HR services to corporate teams, integrating with inhouse staff to both guide and execute across every domain. Contact us today so that we can start delivering your custom solutions.