Employment Law & Benefits in 2025

The last 12 months have seen notable changes to the employment law landscape in Ireland. We take a look at some key developments and how they are likely to influence employment law in 2025 and beyond.

Artificial Intelligence in the Workplace

The use of artificial intelligence (AI) systems in the workplace increased rapidly in 2024 and it is expected to increase further. Many HR teams have incorporated AI systems into their processes in areas such as recruitment, performance management and employee monitoring.

Employers are already required to comply with various pieces of legislation in the use of AI systems such as privacy and employment equality laws. However, the EU AI Act, which came into force on 1 August 2024, introduces a new risk-based approach to regulating AI systems that all employers are required to comply with over a phased basis. The AI Act aims to ensure the safe and ethical use of HR tools utilising AI. These tools, are classified as “high risk". The Act sets out clear requirements for AI systems that could have potentially harmful outcomes.

As AI continues to evolve in 2025, HR teams are advised to keep up to date with legal developments. They should audit HR tools that use AI systems for bias. Where possible, they should also maintain human oversight of processes to ensure the lawful and ethical use of AI in the workplace.

For more information, read our articles:

AI in the Workplace: Navigating the Legal Landscape

Artificial Intelligence and the Impact on HR Practices

Protected Disclosures

It has almost been two years since the commencement of the Protected Disclosures (Amendment) Act 2022 (the 2022 Act). Since then, there has been a significant increase in the number of cases taken by workers who claim they have been penalised by their employers for making protected disclosures.

The Workplace Relations Commission (WRC) reported in its 2023 annual report that there was a 201% increase in the number of protected disclosure related claims compared to 2022. The WRC is yet to publish its 2024 annual report. However, our experience indicated a further rise in the number of protected disclosures in 2024. This includes a rise in applications for interim relief in the Circuit Court to restrain acts of penalisation. These acts now encompass all forms of penalisation, not just dismissal.

In practice, we see a range of issues being raised as protected disclosures. At times, it can be difficult to delineate what is a protected disclosure and what is a matter relating to an employee’s own terms and conditions or a personal grievance. In many cases, protected disclosures are raised by underperforming employees or those facing disciplinary processes in order to avail of the substantial protections available to whistleblowers under the legislation. We are noticing more employees with less than one year's service raising protected disclosures during their probationary period so they can avail of protections under unfair dismissals legislation. These protections apply to employees with less than one year’s service if they have made a protected disclosure.

For more information, read our article:

What Charities Need to Know about Whistleblowing in the Workplace

Changes to the use of NDA’s

The Maternity Protection, Employment Equality, and Preservation of Certain Records Act 2024 introduced significant changes to the Employment Equality Act 1998, particularly regarding non-disclosure agreements (NDAs).

The Act restricts the use of non-disclosure provisions in cases involving allegations of discrimination, victimisation, harassment, or sexual harassment. NDAs that prevent employees from disclosing these allegations or actions taken in response to them are now void, except under specific circumstances outlined in the Act.

NDAs will remain valid if they are part of a WRC mediation or meet the criteria of an "excepted" NDA. For an NDA to be "excepted”, the employee must request the NDA and receive independent legal advice, the cost of which must be covered by the employer. The NDA must meet certain formalities. It should:

• Be clear and understandable
• Offer unlimited duration unless the employee opts otherwise, and
• Allow the employee to withdraw from the NDA within 14 days

Additionally, the NDA must allow disclosures to specified persons, including law enforcement, legal professionals, and other relevant authorities, without penalty.

For more information, read our article:

New Restrictions on Non-Disclosure Agreements

Top tips for employers heading into 2025

• Employers should stay up to date with AI regulatory requirements, put in place processes to assess risks posed by their use of AI systems and implement training, governance structures and policies to mitigate any legal risks.
• Employers may not always be legally required to have a protected disclosures policy in place, such as when they have fewer than 50 employees. However, it is good practice for all employers to implement such policies. This helps to effectively address any protected disclosures raised by workers and reduces the risk of legal claims.
• Employers should review and update their template severance agreements and consider whether any confidentiality, non-disclosure or non-disparagement clauses need to be removed and/or amended in cases involving allegations of discrimination, harassment, sexual harassment or victimisation. If an NDA is not compliant with the Act, the risk is that it could be voided on the basis of illegality.

For more information and expert advice, please contact a member of our Employment Law & Benefits team.

The content of this article is provided for information purposes only and does not constitute legal or other advice.