European Union: Employee Rights/ Labour Relations

Italy's Legislative Decree No. 96/2026 implements the EU Pay Transparency Directive, introducing a comprehensive framework that shifts equal pay from an HR objective to a rigorous legal mandate with severe consequences for non-compliance. The legislation reverses the burden of proof in discrimination cases, prohibits pay secrecy clauses, and grants government agencies unprecedented access to corporate pay structures through automated reporting systems.

Irish employers are increasingly exploring the 'PIP or Go' model as an alternative to traditional performance management processes, offering underperforming employees a choice between entering a formal performance improvement plan or accepting an exit package. While this approach can expedite internal processes and reduce administrative burden, it carries significant legal risks including constructive dismissal claims, discrimination allegations, and potential challenges to subsequent dismissal procedures.

The Tax Appeals Commission examined whether an employee working in Ireland under an A1 certificate, who paid social security contributions in another EU jurisdiction rather than Irish PRSI, could claim tax exemption on a redundancy payment. The case centered on the interpretation of the Redundancy Payments Act 1967 requirements and whether EU Regulation 883/2004 on social security coordination could override Irish tax law provisions for statutory redundancy payments.