Employment Law for HR Leaders: What Employers Need to Know for 2027

Ireland’s employment landscape continues to evolve, with significant developments in retirement legislation, EU pay transparency, artificial intelligence, pension auto-enrolment and employee protections creating new responsibilities and considerations for employers.

As organisations look ahead to 2027, understanding these changes and their implications for the workplace is becoming increasingly important. From new legislative requirements to recent Workplace Relations Commission (WRC) decisions, HR leaders must consider how evolving employment laws affect their policies, practices and people.

Below, we explore the key employment law updates for 2026–2027, the lessons emerging from recent WRC decisions, and the practical steps organisations can take to prepare for the year ahead.

Retirement Age Legislation – Understanding the Right to Work Until 66

One of the significant developments in Irish employment law during 2026 has been the introduction of legislation addressing mandatory retirement ages, bringing greater alignment with the State Pension age of 66.

Historically, many organisations operated a contractual retirement age of 65, creating a potential gap between an employee's retirement from employment and their eligibility to receive the State Pension. The new framework strengthens protections for employees who wish to continue working until the State Pension age, particularly where their employer operates a mandatory retirement age below 66.

Under the legislation discussed during the webinar:

• Employees can formally object to a mandatory retirement age below the State Pension age.
• Requests must be submitted in writing between three months and one year before the employee reaches their contractual retirement age.
• Employers must respond within one month, providing written confirmation of their decision.
• Refusals must be objectively justified, demonstrating that the retirement age serves a legitimate organisational aim and is proportionate.
• Compensation may apply where employers fail to follow the required procedures or penalise employees for exercising their rights.

Importantly, employers must also ensure that any mandatory retirement age is supported by appropriate contractual provisions and a clearly documented retirement policy. For organisations that do not operate a mandatory retirement age, the legislation does not create an obligation to introduce one.

What should employers do now?

Review existing retirement provisions, assess whether mandatory retirement ages remain appropriate, and ensure managers understand how to respond to requests from employees wishing to continue working. It is also worth considering workforce demographics and succession planning, particularly where a significant proportion of employees may be approaching retirement age. 

Tip for employers: A retirement policy should do more than specify an age. It should clearly explain the organisation's approach, the objective justification for any mandatory retirement requirement and the process employees can follow to raise concerns.

EU Pay Transparency Directive – Preparing for Greater Openness

The EU Pay Transparency Directive remains one of the most important legislative developments facing Irish employers. Although EU Member States were required to transpose the Directive into national legislation by 7 June 2026, Ireland had not introduced comprehensive implementing legislation at the time of the webinar.

While further clarity on Ireland's approach is expected in 2027, employers should not wait until legislation is finalised before reviewing their existing pay practices. The Directive introduces a more detailed approach to pay transparency, with implications for recruitment, remuneration structures, employee information rights and gender pay gap reporting.

Key requirements under the Directive include:

• Greater transparency during recruitment, with applicants receiving information about starting salaries or salary ranges before their first interview.
• Access to pay information, allowing employees to request information about pay levels within comparable categories of workers.
• Gender-neutral job evaluation, ensuring remuneration decisions are based on objective and consistent criteria.
• More detailed gender pay gap reporting, examining differences within categories of employees rather than solely across an organisation's overall workforce.
• Clearer pay progression criteria, helping employees understand how remuneration and career development decisions are made.

A particularly important consideration is how organisations define categories of workers. Rather than treating the workforce as a single group, employers will need to consider how roles can be meaningfully grouped according to factors such as responsibilities, skills and working conditions. This may reveal pay differences that are not immediately apparent through existing reporting practices.

What should employers do now?

Organisations can begin preparing by reviewing:

• Job descriptions and employee categories
• Salary bands and remuneration frameworks
• Recruitment advertisements and interview practices
• Performance-related pay and progression criteria
• Existing gender pay gap data and potential disparities

For HR leaders, the challenge is not simply making pay information available. It is ensuring that remuneration decisions can be clearly explained and consistently justified.

Tip for employers: Begin documenting the objective reasons behind salary differences now. Experience, qualifications, responsibilities and performance may all be relevant considerations, but employers should be able to demonstrate how these factors are applied fairly.

AI in HR – Balancing Innovation with Accountability

AI is increasingly influencing how organisations recruit, manage and communicate with employees, bringing new opportunities and challenges for leaders looking to elevate employee experience in the future of work. From drafting workplace documentation to supporting recruitment and performance management, AI offers opportunities to improve efficiency. However, its growing use also introduces important considerations around data protection, accuracy, confidentiality and accountability.

During our recent Employment Law Update webinar, Bláthnaid Evans, Partner at Philip Lee LLP, highlighted the increasing use of generative AI in workplace grievances, disciplinary matters and employment disputes, and the challenges this presents for employers. AI-generated submissions can contain inaccurate legal references, unsupported claims or unnecessarily complex information, creating challenges for employers attempting to identify and respond to the underlying complaint.

Recent developments involving the WRC and the courts have reinforced the importance of independently verifying AI-generated material, particularly where it is used in legal proceedings. For employers, this highlights the need for clear internal governance.

An effective workplace AI policy should address:

• Acceptable use: Clearly define which AI tools employees may use and for what purposes.
• Data protection: Establish safeguards to prevent confidential organisational information or sensitive employee data being entered into unauthorised platforms.
• Accuracy and verification: Require employees to review and independently verify AI-generated information before relying on it.
• Human oversight: Ensure important employment decisions remain subject to appropriate human judgement.
• Training and awareness: Equip employees and managers with the knowledge to use AI responsibly.

Organisations should also consider how AI-generated grievances and complaints are managed. Where a submission is particularly lengthy or unclear, an initial discussion with the employee may help establish the specific concerns being raised and ensure they are addressed through the appropriate procedures.

This should be approached carefully, without discouraging employees from raising legitimate workplace concerns. Looking ahead, further requirements under the EU AI Act are expected to influence the use of AI in recruitment, employee monitoring and performance management.

What should employers do now?

Review existing AI policies, identify where AI is already being used across HR functions and ensure appropriate safeguards are in place. For multinational organisations, a wider regional AI policy may provide a useful starting point, but local legal requirements should also be considered.

Tip for employers: Responsible AI adoption starts with clear expectations. Employees should understand what information can be shared with AI tools, what requires human review and where accountability ultimately sits.

Pension Auto-Enrolment – Lessons from the First Year

The introduction of My Future Fund, Ireland's automatic pension enrolment system, on 1 January 2026 represented a significant change to retirement savings for employees and employers.

As the scheme approaches its first anniversary, attention is shifting from initial implementation towards the practical considerations of managing contributions, payroll arrangements and employee participation. Under the scheme, eligible employees who are not already covered by qualifying pension arrangements are automatically enrolled, with contributions made by employees, employers and the State.

One of the important considerations is the treatment of variable remuneration, including bonuses and commission payments. Where employees participate in My Future Fund, relevant variable earnings must be taken into account when calculating contributions, subject to the scheme's applicable rules and limits. This can create differences between auto-enrolment and certain occupational pension arrangements, where contributions may be calculated using basic salary.

Employers should therefore understand how different remuneration structures affect pension contributions and ensure employees receive clear information about their arrangements.

Other important considerations include:

• Qualifying pension schemes: Employers should confirm whether existing arrangements satisfy the requirements for employees to remain outside auto-enrolment.
• Contribution calculations: Payroll systems must correctly account for relevant earnings and applicable contribution rates.
• Employee opt-outs: Eligible employees may exercise opt-out rights within the scheme's prescribed timeframes.
• Employee communication: Organisations should explain how contributions operate and what employees need to consider when reviewing their pension options.

The contribution rates under My Future Fund increase gradually over the scheme's implementation period, making forward planning important for employers managing payroll costs.

What should employers do now?

Review pension and payroll arrangements, check how variable remuneration is treated and ensure employees understand the differences between available pension options.

Tip for employers: Pension communication should form part of a wider financial wellbeing strategy. Clear, accessible information can help employees make informed decisions about their long-term financial security.

Key WRC Decisions in 2026 – What Employers Can Learn

Alongside legislative developments, recent WRC and Labour Court decisions offer important lessons about how employment obligations are interpreted in practice. Several cases discussed during the webinar highlight the importance of fair procedures, clear contractual terms, consistent decision-making and appropriate workplace protections.

1. Unfair Dismissal – X (Formerly Twitter) v Gary Rooney

The widely reported dispute involving X and former employee Gary Rooney followed the company's requirement for employees to confirm their commitment to new working arrangements.

When Mr Rooney did not agree to the proposed terms, the company treated his lack of response as a resignation. The WRC found that he had been unfairly dismissed, a finding subsequently upheld by the Labour Court.

However, the Labour Court significantly reduced the compensation awarded after examining which elements of his remuneration should be included in the calculation. In particular, the treatment of discretionary bonuses and share-based arrangements became an important consideration.

What employers can learn: Employees should not automatically be treated as having resigned simply because they do not agree to changes in employment conditions. Organisations should also ensure that contractual remuneration, discretionary bonuses and share schemes are clearly defined, particularly where these arrangements may influence compensation calculations.

2. Recruitment Discrimination – O'Connor v National Council for Special Education

This case concerned a deaf applicant who was excluded from consideration for a role because he did not hold a particular sign language qualification. Despite having extensive relevant experience and qualifications, the applicant was deemed ineligible under the recruitment criteria.

The WRC found that the requirement amounted to indirect discrimination because it placed the applicant at a particular disadvantage without sufficient objective justification. The case also attracted attention because of the level of compensation awarded.

What employers can learn: Recruitment criteria should be genuinely necessary for the role and applied proportionately. A qualification requirement that appears neutral may still create barriers for particular groups of applicants. HR teams should regularly review recruitment practices to ensure they assess candidates fairly and do not unintentionally exclude suitably qualified individuals.

3. Constructive Dismissal – Barry Flannery v Zero Technologies

In this case, a senior executive brought a constructive dismissal claim after experiencing a series of actions that significantly undermined his ability to perform his role. These included exclusion from operational decisions, restrictions involving workplace communications and allegations of misconduct that were not formally addressed through an appropriate process.

The WRC found that the employer's conduct amounted to a serious breach of the employment relationship. The resulting compensation award also highlighted the potential financial implications of constructive dismissal, particularly where senior employees face contractual restrictions affecting future employment.

What employers can learn: Constructive dismissal is not limited to situations involving an explicit instruction to leave. Repeated actions that isolate an employee, undermine their responsibilities or prevent them from carrying out their role can create significant legal exposure. Employers should ensure workplace concerns are addressed through fair procedures and that employees are treated consistently, regardless of seniority.

4. Protected Disclosures – O'Neill v Waterford Intellectual Disability Association

This case highlighted the serious consequences of failing to respond appropriately to protected disclosures. The employee raised concerns relating to governance, financial management and organisational oversight.

Following these disclosures, she experienced a series of actions that the WRC found amounted to penalisation, including failures in the handling of complaints and changes affecting her position within the organisation. The WRC awarded substantial compensation across two separate claims.

What employers can learn: Having a protected disclosures policy is not enough if the procedures are not followed. Employers must ensure that concerns are appropriately assessed, investigated where required and handled without retaliation. This includes training managers and senior leaders to recognise protected disclosures and understand their responsibilities. Creating an environment where employees feel safe speaking up is an important part of fostering trust in the workplace and strengthening organisational accountability.

5. Remote Working – Clear Policies and Contractual Expectations

A further case involving a professional services employee working remotely from another country highlighted the importance of clear contractual arrangements. The dispute arose after the employee continued working from abroad without the employer accepting that the necessary permission had been granted.

The employer relied on contractual provisions identifying Ireland as the employee's place of work, alongside its remote working arrangements. The case reinforced the importance of ensuring that employees understand where they are authorised to work and the procedures for requesting alternative arrangements.

What employers can learn: Remote and hybrid working policies should clearly address the employee's contractual place of work, approval requirements and any restrictions on working internationally. Employers should also consider the potential tax, regulatory, data protection and operational implications of cross-border working.

Tip for employers: Employment contracts and workplace policies should work together. Clear documentation, consistent communication and fair procedures can help prevent disagreements from escalating into formal disputes.

Looking Ahead to 2027 – What's Coming Next?

As employers prepare for 2027, several legislative developments remain important to monitor. Some are awaiting national implementation, while others remain proposals that may change before becoming law.

EU Pay Transparency Directive

Further Irish legislation is anticipated following the missed June 2026 transposition deadline. Employers should continue reviewing remuneration structures, recruitment practices and pay reporting processes while awaiting clarity on implementation.

EU AI Act

Additional regulatory requirements affecting certain AI systems used in employment-related decision-making are expected to shape HR governance. Employers should monitor implementation timelines and ensure their AI policies remain aligned with applicable obligations.

Platform Work Directive

The Directive addresses employment status and working conditions for people working through digital labour platforms. Its provisions are intended to provide greater clarity around employment relationships and the use of automated systems in platform work. Organisations operating in this area should monitor Ireland's implementation approach and consider how worker classification may be affected.

National Minimum Wage

The National Minimum Wage increased to €14.15 per hour in January 2026, with a further increase to €14.94 proposed for 2027. Employers should monitor the final confirmed rate and review payroll arrangements, salary structures and workforce budgets accordingly.

Pregnancy Loss Leave

Proposed legislation would introduce a statutory entitlement to paid leave following pregnancy loss in specified circumstances. At this time, the proposals remain subject to the legislative process. While the final provisions have yet to be confirmed, the discussion reflects growing attention to the importance of supporting employees through pregnancy loss and other difficult personal circumstances.

Employers can use this opportunity to review existing compassionate leave and pregnancy loss policies, while considering how they can better support employee health and wellbeing at work.

Turning Employment Law Compliance into Stronger Workplace Culture

Employment law continues to evolve, but the underlying expectations of employees remain consistent: fair treatment, clear communication, transparency and trust. Whether organisations are reviewing retirement policies, preparing for greater pay transparency, introducing AI governance or responding to workplace concerns, the way these changes are managed matters.

Legal compliance establishes important minimum standards. Workplace culture determines how those standards are experienced by employees every day. For HR leaders, this means looking beyond whether policies meet legislative requirements and considering whether employees understand them, managers apply them consistently and organisational decisions reflect a genuine commitment to fairness.

By taking a proactive, people-first approach to employment law developments, organisations can reduce risk while strengthening the trust and confidence that underpin a great workplace.

This blog reflects the topics discussed during our October 2026 webinar and is intended for general information purposes. Legislative proposals, implementation dates and legal requirements may change. Organisations should seek appropriate legal advice on their individual circumstances.

Additional Resources – Previous Employment Law Guides

For further guidance on Ireland's changing employment landscape, explore our previous employment law webinars and articles:

• Recording | Employment Law for HR Leaders: Current Updates and What's Coming in 2027
• Employment Law Updates 2025 | What Employers need to know | Watch the Recording
• Employment Law Updates 2025: What Employers Need to Know (blog)
• Employment Law Changes Guide: Key Updates for Employers (blog)
• Navigating Changes in Employment Law in Ireland 2023 (blog)

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