14 May 2025
With an increased focus on pay transparency, we examine the General Scheme of the Equality (Miscellaneous Provisions) Bill 2024, including what it is missing and the overall impact it is expected to have on both employees and employers.
Earlier this year, the Irish Government published the General Scheme of the Equality (Miscellaneous Provisions) Bill 2024 (the “Bill”). The Bill aims to transpose the EU Pay Transparency Directive (2023/970) (the “Directive”) which has a transposition deadline of June 2026. The Bill includes various amending provisions including those in relation to the Employment Equality Act 1998, and the Equal Status Act 2000. Considering the Bill only partially addresses the requirements of the Directive, we expect to see additions and amendments in subsequent drafts.
The Bill intends to amend several provisions of the Employment Equality Act 1998 (as amended) (the “1998 Act”) to provide for increased pay transparency and other enhanced protections. The Bill seeks to amend section 10 of the 1998 Act and include a prohibition on advertisements for employment that do not include the remuneration rate or its range and prohibit employers from asking about the current or former remuneration rates of job applicants. It is envisaged that the definition of vocation training under section 12 of the 1998 Act will be expanded to include practical work experience which will bring more education providers within scope. In relation to the provision made for positive action under section 33, the Bill extends this section beyond employees to include prospective employees, with the intention of enabling employers to adopt recruitment initiatives targeted at those whose participation in the labour market is lower.
The Bill aims to remove the entitlement of employers to pay employees with a disability a lower remuneration rate than other employees, which is currently permitted under section 35. Amendments are intended to be made to section 36 which permits employers to require the holding of a specific educational, technical or professional qualification which is a generally accepted qualification in Ireland for a particular post. Under the Bill, this requirement will need to be necessary and proportionate to the requirements of the post and be objectively justified for achieving that purpose. It is intended that this additional requirement will prevent indirect discrimination.
The timeframe for seeking redress under section 77 is proposed to be extended from 6 months to 12 months and the extension period will be expanded from 12 months to 18 months. The maximum compensation that can be given by the Workplace Relations Commission (the “WRC”) will be available to those who have left employment, not just those who have been dismissed.
The Bill intends to include victimisation in the definition of prohibited conduct and includes victimisation as its own standalone ground that does not require a comparator under a new proposed section 11A. An amendment would allow discrimination cases to be taken under more than one ground of discrimination. Provision is made for the creation of a new section 4(2A) which would outline that public bodies, credit unions, financial institutions, insurance undertakings and public transport operators who refuse or fail to provide the special treatment facilities under section 4(1) will not be deemed reasonable unless such provision of the special treatment/facilities would impose a disproportionate burden on the provider of the service in question. Factors for determining whether the burden is disproportionate are provided in the Bill.
The timeframe for notifying the person/organisation alleged to have discriminated is proposed to be extended from 2 months to 4 months and the extension period for reasonable cause being moved from 4 months to 6 months. The time periods for taking a claim to the WRC are also proposed to be extended time from 6 months to 12 months and with reasonable cause from 12 months to 18 months. The redress that can be awarded is proposed to be extended to the maximum amount that could be awarded by the Circuit Court, rather than the District Court, as is currently the limit. It is further proposed that the WRC will be required to draft guidelines for compensation that can be ordered.
While the Bill is in draft stage, and while it includes many general employment equality amendments, we note that it is a long way from transposing the full requirements of the Directive. We expect to see many amendments or separate draft legislation to address the Directive over the coming months.
The Employment and Immigration Law team in KPMG Law LLP can assist employers in preparing for the anticipated changes outlined in the Bill, as well as preparing for the broader pay transparency and additional reporting requirements of the Directive. Please contact a member of the team for more information.
[1] Right to request flexible and remote working
[2] [ADJ-00051600]
[3] [ADJ-00052414]
[4] [ADJ-0042625]
