Employment Law Updates for 2026: Ireland

Irish labor law is facing a busy period, with a broad package of reforms expected to be implemented by 2026. These changes will affect several aspects of the employment relationship. From pensions and wage transparency to equal treatment, statutory leave, and the increasing use of AI in the workplace. Some measures are a direct result of EU legislation, while others reflect domestic policy priorities. Together, they mean that employers need to start planning early, reviewing payroll systems, HR policies, recruitment processes, and staffing strategies to remain compliant and avoid last-minute disruptions.

In this blog, we explore the key aspects of these developments and what they mean for employers in everyday practice. We, as Parakar, can support your organization in dealing with these changes, complying with regulations, and translating new requirements into manageable, day-to-day processes.

Automatic registration for retirement savings: My Future Fund

From January 1, 2026, Ireland will implement its long-awaited automatic pension registration scheme, My Future Fund. Employees age 24 to 60 who earn €20,000 or more per year, and who are not already covered by an exempt pension scheme, will be automatically be enrolled. Contributions will be phased in, starting at 1.5% from both the employer and the employee, supplemented by a 0.5% contribution from the state.

Although employees have the option to withdraw after six months, employers need to prepare well in advance. Registration on the My Future Fund portal must be completed before the end of 2025, payroll systems must be updated, and communication with employees must be carefully managed. It is important for employers to strike the right balance and explaining the scheme clearly without giving financial advice or discouraging participation.

EU Pay Transparency Reforms

By June 7, 2026, Ireland must transpose the EU Pay Transparency Directive into national law, ushering in a new era of openness around wages. Employers will be obliged to include wage ranges in job offers, remove questions about wage history from recruitment procedures, and respond to requests from employees for wage information. Where a gender pay gap of 5% or more cannot be objectively justified, employers may also be required to carry out a collective wage review.

Many organizations are actively taking steps, reviewing their wage structures, and performing internal equal pay audits to ensure they are well-positioned when these obligations come into effect.

Mandatory Gender Pay Gap Reporting Portal

Further changes are expected in 2026 due to amendments to the Gender Pay Gap Information Act 2021. Under the proposed reforms, all employers covered by the Act will be required to publish their gender pay gap reports on the government’s official reporting portal. This will increase transparency and public oversight, particularly for employers who are new to the reporting system. Some organizations are voluntarily choosing to pre-register and report so they can get familiar with the system and refine their reporting.

Regulation of AI in the Workplace under the EU AI Act

The EU Artificial Intelligence Act will apply to high-risk AI systems from August 2, 2026, with significant implications for employers using AI-driven tools. This includes AI used in recruitment, candidate screening, performance monitoring, work allocation, promotion decisions, or dismissals.

Employers need to understand how AI is actually used within their organization, provide appropriate governance and human oversight, and offer training when AI impacts workplace decisions. The establishment of the Irish National AI Office and regulatory sandbox in 2026 is expected to provide practical guidance and support as employers adapt to this changing regulatory framework.

Digital Omnibus Reforms under EU AI Law

Later in 2026, proposed EU reforms under the “digital omnibus” are expected to simplify certain digital and AI compliance requirements.

While these reforms are intended to reduce the regulatory burden, they are still in development. Employers using AI should continue to monitor progress closely and make sure any changes to internal policies or procedures are implemented consistently during the transition period.

Maternity Leave

The Pregnancy Loss (Various Provisions) Bill of 2025, which is currently undergoing the legislative process, is expected to come into force in 2026. The bill provides for paid statutory leave following pregnancy loss: five days for the expectant parent and two and a half days for the other parent.

Many employers are already reviewing their maternity and family leave policies, assessing how the certification requirements will work in practice and planning HR processes that balance legal compliance with sensitivity and compassion.

Contractual Age of Retirement

Under the Employment (Contractual Age of Retirement) Bill 2025, employees with a contractual age of retirement that is lower than the statutory retirement age will be able to formally notify their employer that they do not agree to the contractual retirement age. Employers may only enforce retirement if it can be objectively and reasonably justified by a legitimate purpose.

This is predicted to result in a broad review of retirement terms and conditions and the development of clearer internal processes for handling employee notifications and managing age-related workforce planning.

Equality law – Socially and Economically disadvantaged

The Equality (Miscellaneous Provisions) Bill 2025 seeks to add socioeconomic disadvantage as a new protected ground under Irish equality legislation. If passed, this would broaden the scope of potential discrimination claims and place greater emphasis on fair and inclusive employment practices.

In anticipation of this, employers are revising their recruitment methods, equality policies, and training programs, with a particular focus on addressing unconscious bias in hiring and decision-making.

Sick leave for health screening

Finally, the proposed changes to the Working Time Act would introduce a new right to paid leave for health screening. Employees would be entitled to up to three days of paid leave per year to participate in national health screening programs. If this law is passed in 2026, employers will need to adjust their leave policies and payroll systems to account for this additional statutory benefit.

How Parakar can support

With a wide range of labour law changes on the horizon, employers operating in or expanding into Ireland will benefit from practical, hands-on HR support. Parakar helps organizations confidently navigate Irish employment law and translates new legal requirements into clear, workable HR processes. From preparing for automatic pension enrollment and pay transparency obligations to updating policies on leave, equality, retirement, and the use of AI in the workplace, our consultants provide end-to-end support.

Parakar helps facilitate fast and compliant recruitment in Ireland and manages payroll, contracts, and HR administration without the need to set up a local entity. We also support the management of remote employees and ensure full compliance with Irish labor laws. In additional, our team provides support on employee relations and helps employers effectively address sensitive or complex HR issues.

Get in touch with Parakar today to ensure your business is fully equipped to handle these important responsibilities, allowing you to focus on what truly matters, supporting your employees.