What everyone’s reading this week : 

1. 🤖 A quarter of businesses using AI admit they’re unclear on the rules
2. 💸 Over half of employers plan to boost salaries this year
3. 🏅 HR Directors named among Ireland’s most influential leaders – but leadership gaps still loom
4. 📊 DPC Annual Report 2024: Striking a balance on regulation
5. 🏡 Blog: 3 things you should know about remote working

And in other news... 🧠✨ creating psychological safety at work is key to unlocking brilliant teams, especially for neurodivergent colleagues, with better listening emerging as the leadership superpower we all need 🎧🤝Read all about it here. 

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1. Case Law Reviews
2. AI and Employment Law
3. Pay & Benefits
4. Data Protection & Cybersecurity
5. Mandatory Retirement Ages
6. Sectoral Employment Order
7. Just In Case You Missed It....
8. HR Developments
9. Employment News in the Media
10. Friends of Legal Island
11. Free Webinars This Month 

A Worker v A Care Home ADJ-00050820

Summary: A cleaner was found to have been unfairly dismissed after her employer wrongly claimed she had verbally resigned during a brief phone call, without following fair procedures or obtaining written confirmation.

Practical Guidance for Employers: 

Employers should ensure that any termination of employment is handled in full compliance with fair procedures. Verbal resignations should never be assumed or acted upon without written confirmation. Where a resignation is claimed, follow-up documentation from the employee should confirm intent, and the employer should clearly outline next steps in writing. Additionally, proper documentation and communication are crucial. Keep clear records of all correspondence, particularly in matters involving extended sick leave. If medical certificates are missing or disputed, raise the issue promptly with the employee and provide written requests or warnings where appropriate. Failure to follow internal procedures and employment law requirements, including S.I. 146/2000, may result in a finding of unfair dismissal, even where an employer believes they acted in good faith. 

Read the full Review here.
 

Gary Hogan v Tesco Ireland Limited ADJ-00048560

Summary: WRC found dismissal unfair due to disproportionate response and lack of fair procedures.

Practical Guidance for Employers: 

Employers should:

• Always Consider Proportionality: Even where misconduct is proven, dismissal must be a last resort. Reasonable alternatives (such as final warnings) should be properly assessed and documented before termination.
   
• Maintain Fair Procedures: Ensure all stages of investigation and disciplinary actions follow written policy and give the employee every opportunity to respond. A fair chance to reply to allegations is essential.
   
• Document Everything and Communicate Clearly: Suspension letters, meeting minutes, and notices of decisions must be shared with the employee and properly recorded. Where anonymous complaints arise, confirm early that they are not relied upon or form part of final decisions to avoid future procedural challenges.

Read the full Review here.

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These case reviews were written by Patrick Barrett BL.

Patrick's legal education is robust, beginning with a BCL Law Degree from University College Cork (2012-2016), followed by an LL.M in Business Law from the same institution (2016-2017), and culminating in a Barrister-at-Law Degree from The Honorable Society of King’s Inns in Dublin (2019-2021). He has extensive experience on the South-West Circuit, handling Civil, Family, and Criminal Law cases, as well as advising the Citizen Advice Service.  He has worked as an employment consultant, dealing with workplace investigations and bankruptcy procedures.

Remember: Our Irish case law reviews are now held in our case law section on our fully-searchable employment law hub website.

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Quarter of businesses that use AI are unclear of regulatory obligations, according to new report

A quarter of Irish business that are using artificial intelligence (AI) do not know whether they qualify as “providers” or “deployers” under the EU AI Act. Almost four out of 10 businesses here have not appointed a named individual for an AI seat, as required under the law. A new Governing AI report from Irish law firm Arthur Cox shows that almost all businesses in Ireland, 97pc, are using AI, though just 10pc say it is “fundamental” to their operations. More from the Irish Independent.

Software engineers and customer service agents will be first to lose jobs to AI, Oireachtas to hear

Software engineers, junior lawyers, and customer service roles will be among the first in Ireland to be affected by job losses to artificial intelligence, experts on the AI Advisory Council predict. Members of the council, made up of 15 independent experts who advise the Government on Ireland’s AI strategy, appeared before the Oireachtas AI Committee on Tuesday. It heard the even moderate workforce reductions could collectively lead to "noticeable increases" in unemployment. The Irish Examiner has more.

Why GenAI still needs a good lawyer

Without close collaboration between legal professionals and developers, LLM-powered drafting tools risk becoming impressive at a superficial level but fundamentally unsuitable for real-world legal practice. The team from Clarilis LLP explore why solutions need to be developed with lawyers, as well as for them. Read it in full here.

AI or Die: Why Waiting Is a Losing Strategy

This week Barry Phillips looks at a few stats that suggest HR needs to make bold moves in AI.

AI or Die: Why Waiting Is a Losing Strategy

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Pay cap scrapped: Will bankers' salaries skyrocket?

More than 15 years after the banking collapse rocked the economy and public trust, the Government has lifted the long-standing cap on bankers' pay. Introduced following the 2008 financial crash, the €500,000 salary limit was meant to rein in excess and signal a new era of responsibility. Its removal marks a significant turning point - one that's being welcomed by industry leaders but met with unease by others who remember the high cost of past mistakes reports RTÉ. Read full story here. 

Minister Foley welcomes new proposals for 10% increase in minimum rates of pay for Early Years Educators and School-Age Childcare Practitioners

The proposals have been put forward by the Joint Labour Committee, which is made up of employer and worker representatives. It has the responsibility for setting minimum rates of pay for over 35,000 staff in the early years and childcare sector. The Minister expressed her appreciation for the collaborative efforts of the Joint Labour Committee and acknowledged their independence in the negotiation process. You can read the full press release here.

Over half of firms ‘will hike employee salaries this year’

Over half of Irish companies plan to increase staff salaries this year, according to a survey by FRS Recruitment. Of those, 55% expect raises of 1%–3%, 26% aim for 4.5%–5%, and 6% plan increases of 6%–10%. However, 11% have no plans to raise wages. FRS's Lynne McCormack noted that many employees do expect a pay rise in 2025, reports Business Plus.

Bus Eireann recorded €4.2m loss in 2024 and 'projecting similar losses for 2025'

Bus Éireann told the Labour Court it lost €4.2m last year and expects similar losses in 2025. Despite this, the Court recommended a 6.75% pay rise over two years and a €500 voucher for the company’s 3,200 workers. The dispute arose after staff, represented by several unions, rejected WRC pay proposals by 64% to 36%. RTÉ has more on this.

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DPC Annual Report 2024: Proportionate, Fair and a Balanced Approach to Regulation

On 19 June 2025, the Data Protection Commission published its annual report for 2024 together with the results of its first ever Public Attitudes Survey and a booklet of case studies with key learnings. Read McCann Fitzgerald's comprehensive analysis of the report here. 

Irish staff data ruling ‘may open door’ to more US tax probes, experts warn

Last month, an American judge told Dublin-headquartered Eaton, a power systems multinational, to ignore GDPR rules and hand over controversial employee-performance evaluations to the IRS following a long-running legal dispute. The IRS hopes to use the evaluations to judge how much work Irish-based staff were doing on some of its intellectual property (IP), potentially showing whether Eaton was being taxed correctly or not. Reacting to the judgment, Brendan Murphy, tax lead and partner at Baker Tilly Ireland, said some multinationals will worry that the ruling could “open the door” for more IRS investigations into the work of Irish staff. The Irish Independent has more here.

DPC: Inquiry into City of Dublin Education and Training Board (CDETB)

The Data Protection Commission (DPC) has fined the City of Dublin Education and Training Board €125,000 after finding multiple GDPR breaches stemming from a 2018 personal data incident affecting around 13,000 individuals. The compromised data included sensitive personal and special category information, with the breach left unreported to both regulators and affected parties in a timely manner. The DPC highlighted this as the second recent sanction for similar failings, reinforcing the need for proactive governance in public sector data handling. You can read the full details here.  

Irish businesses show ‘disconnect between perception and reality’ on cybersecurity

More than 90 per cent of Irish businesses believe they are adequately protected against cyberattacks, even though almost six in 10 do not regularly update their software, according to research by insurance broker Gallagher. The company commissioned a survey of 300 businesses across Ireland and Britain, 100 of which are based in Ireland, to assess what critical cybersecurity tools organisations are using to protect themselves. More than half fail to run regular automated data backups, indicating a “worrying lack of protection against cyber criminals”. The Irish Times has more on this.

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Recent Caselaw: Mandatory Retirement Ages and Post- Retirement Fixed Term Contracts

Anne O'Connell Solicitors in this article discusses a recent Workplace Relations Commission decision and a recent Labour Court decision on the knotty subject of mandatory retirement ages. Read it in full here. 

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A New Construction Industry Sectoral Employment Order – August 2025

A new Sectoral Employment Order (SEO) will take effect in Ireland on 1 August 2025, this SEO will introduce enhanced minimum hourly rates of pay, minimum pension contributions, and sick pay entitlements for workers in the construction sector (including craft persons, construction operatives and apprentices).

SEO’s are legislative instruments that establish legally binding rates of pay and working conditions for workers in a particular sector. Five trade unions submitted an application to the Labour Court seeking a review of pay, pension, and sick pay entitlements for various construction sector employees, which resulted in the new SEO. Following this application, the Labour Court recommended the new SEO to the Minister for Business, Employment and Retail. This was then approved by the Oireachtas on 7 November 2024. Patrick Walshe from Philip Lee has more. 

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3 Things to Know: Remote Working

The long-awaited introduction of the Work Life Balance and Miscellaneous Provisions Act in 2023 was generally welcomed by employees but was greeted with some apprehension by employers. The concern for employers was the fear that they would be overwhelmed with requests for flexible working and remote working arrangements. However, two years on, a small number have issued under this legislation with only one decision so far in favour of the employee.

In this article Alison Devine of AG specifically looks at the Code of Practice for Employers and Employees introduced by the WRC in March 2024 which aimed to provide some guidance on the procedures to be invoked when dealing with remote and flexible working requests under the 2023 Act. This article highlights aspects of the Code of Practice that employers and HR advisors should be aware of in light of recent decisions of the WRC. Read the article here. 

The Unspoken Agreement that Could Make or Break Your People Strategy
 

With AI, automation, and digital transformation revolutionising the workplace, the nature of the employee-employer relationship is undergoing unprecedented change. Amid these advancements, the concept of the psychological contract (an unwritten set of expectations between employees and their employers) has never been more critical. As traditional job roles evolve and new working models emerge, is the psychological contract more relevant now than ever before? Ryan Calvert, Head of HR, Sales, Marketing and Legal Recruitment at MCS Group looks at how employers can respond:
Read it in full here.

Case Law Insights: Getting Fair Procedures in the Disciplinary Process Right

Missed our webinar with Roisin Boyle, Trade Union and Employment Lawyer, SIPTU and Patrick Barrett BL? Don't worry, you can catch up here.

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HR Directors among Ireland’s most influential leaders – but leadership gaps remain

A rising strategic role, increasing pressure from CEOs, and a looming leadership gap – these are just some of the key insights from the Principal Connections HR Directors Consensus 2025, a major study into the state of HR leadership across Ireland. The research gathered input from more than 130 senior HR executives working in organisations of all sizes and sectors. What emerges is a picture of HR Directors as indispensable to corporate strategy – yet increasingly burdened, under-resourced, and in many cases, without a successor in sight. More from HR Director.

Is the open office failing today’s workforce?

A global study by Crown Workspace found a growing gap between traditional office design and employees' needs. Surveying 1,250 professionals in six countries, the report, “Is it Time to Kill the Open Office?”, revealed that 91% would return to the office more often if it offered quieter, more focused spaces. Despite high attendance, many feel current layouts don’t support productivity or wellbeing in a hybrid work context. More on this story from Crown.

HR underprepared for likely increase in M&A activity

Despite a record slow start for 2025, more than half of companies (54%) expect M&A activity to increase, according to a survey of senior HR professionals by WTW, the global advisory, broking and solutions company. Only a fifth (19%) anticipate deal activity to decrease. HR teams state that they are under increasing pressure, however, with 65% feeling less than fully prepared to handle their potential M&A deals. Respondents acknowledged significant challenges in executing HR due diligence, which typically includes a thorough review of a target company’s HR policies and practices to assess potential liabilities, synergies and risks related to the workforce. Personnel Today has more.

Psychological safety for neurodiversity: One size does not fit all

Psychological safety is the secret sauce of brilliant teams, but how does it actually play out, especially when neurodivergent minds are in the mix? This article from the Training Journal explores what it means to feel safe, seen and supported at work, and why listening better might just be the leadership superpower we all need. Read it here. 

And at the opposite end…

Outdated reviews are ‘flattening excellence into mediocrity’

David Murray discusses the harm of old-fashioned performance reviews and their potential to render atypical employees invisible in this article from Silicon Republic. 

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Two separate disputes between the same shareholders of an Irish recruitment firm that has made millions of euro sourcing nurses and carers for clients including the HSE are now being heard by courts in Ireland and the UK. Dr Judith Kundodyiwa, who owns a stake in Ireland-based Minana International, which trades as GoodPeople, has made “very serious allegations” in Ireland of breach of duty against Minana’s co-owner and managing director, Gerard Chimbganda, the UK’s High Court has been told. Irish Independent has more on this.

More than 100 Cork-based people seeking protection in Ireland have been honoured by SECAD Partnership CLG. The event, last Friday, coincided with World Refugee Day to mark the completion of job skills training to enhance employment opportunities in key sectors, such as healthcare, construction, security, and hospitality. The event brought together participants from diverse backgrounds and 15 nations, all of whom have taken significant steps toward building new lives in Ireland through upskilling and employment readiness. Echo Live has more.

The Health Service Executive has agreed with unions to extend working hours across HSE and its funded agencies. The aim is to improve patient flow and discharge rates by scheduling staff like consultants and social workers over seven days instead of five. You can read more on this from RTÉ.

A total of 45pc of employers still had to submit a gender pay gap report over a month after the closing date last year, according to new research.  The survey by HR professionals’ organisation CIPD Ireland and Industrial Relations News also reveals that the gender pay gap increased at 18pc of businesses. It found that it fell at a third of them. The Irish Independent has more.

Around 100 jobs are to go at Penneys head office in Dublin as the company outsources roles in HR and finance to a third party in India. Primark, which trades as Penneys in Ireland, will cut back around 150 roles in its finance, procurement, and human resources from head office operations in Ireland, the UK, and the US. The company anticipates around 7% of the 1,500-strong workforce based at the international headquarters in Dublin, with 100 jobs to go, reports the Irish Examiner.

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A&L Goodbody opens redeveloped Dublin HQ

Taoiseach Micheál Martin joined A&L Goodbody for the official opening of its newly redeveloped headquarters at 25 North Wall Quay, Dublin 1.

Mr Martin addressed nearly 600 staff from ALG’s Dublin office to celebrate the next chapter for the firm in the heart of Dublin’s International Financial Services Centre (IFSC).

Following the conclusion of the redevelopment project, which began in 2022, the office now includes two additional floors, landscaped terraces, a new atrium and a purpose-built client suite, designed to enhance the client experience and foster deeper collaboration.

Congratulations from Legal Island!  Irish Legal News has more. 

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MCS Lunch and Learn: What Top Recruiters Know that You Don’t (Yet)       

🔔 Please note that the webinar has been rescheduled to 23rd July.

🗓  Thursday, 23 July 2025
🕚 12:00 – 12:45 (45 mins)
💻 Online

Register HERE.
                                                            
Join Julie from Legal Island for an MCS Lunch and Learn webinar with leading recruitment experts Ryan Calvert and Rebekah Mulligan. In the first quarter of 2025, the business and recruitment landscape has already been reshaped by macroeconomic, socio-economic, and political forces. Policy changes, inflationary pressures, and shifts in the labour market are compelling organisations across the UK and Northern Ireland to reassess their HR strategies. As workforce dynamics continue to evolve and skills demands grow, it’s essential for HR professionals to adapt their approaches to remain competitive and effectively meet new challenges.

In this 45-minute webinar, Ryan and Rebekah will share the latest trends in recruitment, exploring how organisations are addressing skills shortages, meeting the demand for flexible work, and adapting to the changing expectations of today’s candidates. From the rise of AI-assisted applications to the impact of global DEI rollbacks on local employer brands, they’ll outline the trends that will define talent acquisition in 2025 and beyond.

In this session, we’ll cover:

• Evolving Hiring Trends – Gain insight into where job demand is expected to increase in the next year.
   
• Practical Strategies for Addressing Skills Shortages and Talent Demands – Learn how organisations are responding to economic pressures and shifting labour markets.
   
• Building an Authentic and Competitive Employer Brand – Discover how cultural fit and retention efforts can strengthen your recruitment strategy.

Learn how to build trust and strengthen your employer brand in an era where candidates are more informed than ever. Our experts will also discuss how HR teams can stay authentic and competitive in a rapidly shifting environment - ensuring your organisation’s values shine through at every touchpoint, from job adverts to interviews and beyond. Expect practical tips, straight-talking insights, and just enough humour to make your talent challenges feel (almost) manageable.

Got questions? Bring them along! Ryan and Rebekah will be answering audience questions, giving you the chance to get expert advice on the issues that matter most to you.

Check out previous discussions:
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