1. Introduction
In an important step towards Ireland’s implementation of the EU Pay Transparency Directive (2023/970/EU), the Irish Government published the General Scheme of the Equality (Miscellaneous Provisions) Bill 2024 (the “GSE Bill”) on 15 January 2025.
The GSE Bill also proposes a number of significant amendments to equality legislation, including extending the time limit for discrimination claims and potential redress. In this article, we outline the key proposals in the GSE Bill and some practical steps that employers can take now to prepare.
2. Key changes proposed by the GSE Bill
The GSE Bill reflects a shift in Ireland’s employment equality framework and, if passed, will introduce a number of substantial changes, including:
- Requirement for pay transparency at the start of the recruitment process;
- Potential for prospective employees to take positive action against an employer;
- Ban on differential pay rates for disabled persons;
- Requirement for employers to objectively justify specific criteria in job ads; and
- Extensions of time limits to bring Workplace Relations Commission (“WRC”) claims for discrimination and harassment from six months to 12 months, potentially extendable to 18 months.
3. Overview of proposed changes
Pay transparency and recruitment practices
- Mandatory salary disclosure in job ads
Employers will be required to include salary ranges in job advertisements. The amendment transposes the relevant section of the EU Pay Transparency Directive that requires employers to provide information about salary levels or ranges either in the job advertisement or in advance of the interview. The goal is to address pay inequality and gender pay gaps, as well as ensure transparency from the outset of the recruitment process.
- Ban on asking about pay history
Employers will be prohibited from enquiring about a candidate’s previous or current salary, transposing the relevant section of the EU Pay Transparency Directive. The goal is to prevent historical pay discrimination being carried into new employment contracts. For example, if a female candidate was experiencing pay discrimination in her former role and was made an offer based on her responses to questions about her prior salary, the pay discrimination could carry into her new position. The ban seeks to prevent this situation from arising.
- Objective justification for job criteria
Employers must be able to objectively justify any educational, technical or professional qualifications listed as job requirements. The purpose of this requirement is to prevent indirect discrimination by ensuring qualification standards are necessary and proportionate to the role.
- Positive action
Measures are proposed to extend the possibility of taking positive action on grounds (other than gender) to include prospective employees (ie, persons seeking to access employment in a specific organisation). The employment participation rates of certain groups has historically been lower than average eg, lone parents, disabled individuals. This provision would expressly enable employers to develop specific recruitment initiatives targeted at persons from equality grounds other than gender where labour market participation rates are lower than average.
- Ban on pay differential for disabled employees
The removal of an existing provision that allows differential pay rates to be paid to disabled persons is proposed. Equality legislation currently provides that a disabled person can receive a lower rate of pay if their productivity is restricted compared to other employees.
Seeking redress in the WRC
- Extended time limits for discrimination claims
There is currently a six month limitation period for discrimination claims before the WRC. This will be extended to 12 months, with a possible extension of up to 18 months in total where there is reasonable cause. This amendment addresses the challenges imposed by the current time limits on employees, who fall within marginalised groups in society and who may be unaware of the redress mechanisms.
- Effective, proportionate and dissuasive redress mechanisms
Where an employee makes a successful complaint under the Equality Act, WRC adjudicators will be required to ensure that any redress ordered is effective, proportionate and dissuasive.
In addition, eligibility to the maximum compensation award will be increased for individuals who have left their employment prior to the referral of their discrimination/ harassment complaint to the WRC without necessarily being dismissed.
Currently, someone who was dismissed, or is still employed at the time or referral, is entitled to a maximum of 2 years' remuneration or €40,000, but someone who left the job prior to referral cannot be awarded more than €13,000. This discrepancy was noted in a recent WRC case, Jasmine Olaru and Remo Foods Limited t/a Domino’s Pizza (see here).
4. What should employers do now?
While the GSE Bill is still in the early stages of the legislative process, it could progress quickly through to law. With that in mind, we recommend employers begin reviewing the proposed changes and assess what action may be required to become compliant with those changes, particularly in relation to:
- Salary ranges: Give careful consideration to salary ranges that will be included in job ads and in the recruitment process.
- Recruitment: Review existing recruitment and interview processes to remove questions about current or previous salaries.
- Job descriptions: Ensure that specific job criteria contained in job descriptions and advertisements can be objectively justified.
Employers should note that there are a number key rights under the EU Pay Transparency Directive that are not currently addressed in the GSE Bill, including a ban on pay secrecy clauses, obligations relating to pay progression and the right to information on pay levels for employees doing the same work or work of equal value. Amendments to the GSE Bill or further legislative proposals can be anticipated over the coming months to address the additional requirements of the EU Pay Transparency Directive.
Contact Us
Matheson's Employment, Pensions and Benefits Group is available to guide you through the complexities of navigating the new trends and legal developments in this area.
For more information please contact our Employment, Pensions and Benefits group partner, Alice Duffy or your usual contact at Matheson.