New legislation on the use of Non Disclosure Agreements now enacted into Irish law
Minister for Children, Equality, Disability, Integration and Youth, Roderic O’ Gorman announced the updates to the Maternity Protection (Amendment) has been enacted into Irish legislation.
The amendment to the legislation included:
Amending the Maternity Protection Act 1994 to allow for a pause in maternity leave in the case of a very serious physical or mental illness for a period of up to 52 weeks.
Amend the Employment Equality Acts 1998-2015 to provide that an Employer shall not enter into a non-disclosure agreement [NDA] with an Employee where the Employee has made allegations of discrimination, harassment, sexual harassment or victimisation unless it has been requested by the Employee.
Maternity Protection Act 1994
The provisions will included a new insertion which will permit an Employee who is on maternity leave and who requires a necessary intervention to be carried out for a serious physical health condition that carries with it a high risk to the life of the Employee to:
- postpone all or part of the maternity leave,
- the maternity leave may not be postponed for a period longer than 52 weeks.
The new provision also states that where an Employee intends to postpone the leave, the Employee must notify her Employer in writing of her intention to postpone the leave and the date on which the intended postponement will commence. The notification must be provided not later than 2 weeks before the intended date of commencement of the postponement and the notification must include a medical certificate stating the nature and extent of the Employee’s health condition, and the intervention(s) required.
Amendments to the Employment Equality Act of 1998 – Update on non-disclosure agreements
The new proposal have to update the Employment Equality Acts by the insertion of a new section after Section 14 to the 1998 Act in relation to Non-Disclosure Agreements (NDAs). Section 14 of the 1998 Act states that a person shall be guilty of an offence if they procure or attempt to procure another person to do anything that constitutes discrimination or victimisation as noted in the Act. The Act did not previously include the use of NDAs where allegations of sexual harassment or discrimination have been made.
The new provisions prohibit the use of NDAs in instances where allegations of discrimination, harassment or victimisation occur and the purpose of the NDA is to conceal information in relation to that allegation, unless the employee requests for an NDA to be signed.
Furthermore, in order for an NDA to be enforceable, the Employee must be provided with independent legal advice, at the expense of the Employer. The terms of the NDA must be set out in writing, be for a limited duration and have a 14-day waiting period after the NDA is signed to allow the Employee to withdraw from the agreement (if they wish) before it comes into force.
The impact of these proposed changes may result in the regulation of non-disclosure agreements where allegations discrimination, harassment or victimisation so Employers will have to be cognisant of the impact of this.
Employers need to:
Update policies: Change your Organisations HR policies to include the new rule that lets employees postpone maternity leave if they are seriously ill. This means employees can allow for their health to get better for up to a year without it affecting their maternity leave time.
Review non-disclosure agreements (NDAs): The new rules about NDAs mean Organisations need to be careful about what their NDAs say. Organisations must also make sure they follow the law update and do not try to stop employees from reporting harassment or discrimination.
Why these changes are important:
Essentially, these changes give employees more flexibility and protection regarding maternity leave and NDAs. Employers need to be aware of these changes and adapt their practices accordingly.
Updated pay, pensions, and sick leave in the construction sector has been approved
The Labour Court’s recommendation for updated pay, pensions, and sick leave in the construction sector has been approved. The revised Sectoral Employment Order (SEO) specifies pay rates based on employee categories, including apprentices and operatives, effective August 2024, with scheduled increases through 2026. Employers must evaluate the impact on labor costs and contracts. These changes aim to attract talent and address skill shortages. Minimum rates of pay will increase by 3.4% from the current SEO rates in August 2025, with provision for a further rise of 3.2% in August 2026.
Announcing the new Sectoral Employment Order, The Minister of State for Business, Employment and Retail, Emer Higgins stated:
“I am very pleased to sign a new Sectoral Employment Order for the Construction Industry. I have carefully considered the statutory report that was submitted to me alongside the recommendation from the Labour Court, and, on this basis, I have formally accepted the Labour Court’s recommendation and made an Order giving it statutory effect.
I believe that these measures are clearly critically important for our economy and for the ongoing provision of quality housing. Ensuring our construction industry is strong and dynamic is an absolute priority for this government.
This Order will also underpin continued good relations between workers and employers in the sector. It will also help maintain the attractiveness of this sector as a viable career option as apprentices will also benefit from the SEO, seeing their legal minimum pay increase as they remain in training.”
Coverage Under the SEO
The Sectoral Employment Order (SEO) applies to:
- Employers operating in the construction sector.
- Employees working in this sector, classified as apprentices, new entrant operatives, construction operatives, or craftspersons.
The SEO specifies the activities that define construction employers and outlines the qualifications and experience required for each employee class.
Impact on Organisations
The updated terms aim to make careers in the construction sector more appealing and address skill shortages for housing and infrastructure projects. Although the next increase in minimum rates begins in August 2025, construction businesses must evaluate the financial implications of the SEO on labor costs and review relevant employment contracts to ensure compliance.
Adare can Help
Our team of Employment Law and Human Resource experts can be your HR partners and guide you through compliance, ensuring your business knows its obligations, staying protected and informed. Reach out to us at (01) 561 3594 or info@adarehrm.ie for support tailored to your needs. Learn more about our services at www.adarehrm.ie.