Employment Law 07 08 2026 The Labour Court's Annual Report 2025: Key Takeaways

The Labour Court's Annual Report (the “Report”) for 2025 has recently been published. The Report marks the Court's 79th year of operation as it prepares to celebrate its 80th anniversary in 2026. Below, we have highlighted some of the key statistics from the year and explore notable developments from the Report.

The Labour Court (the “Court”) is an independent workplace dispute resolution body established under the Industrial Relations Act 1946. In industrial relations disputes, it operates as a tribunal, hearing both sides and issuing non-binding written recommendations. In employment rights cases, it hears appeals of Workplace Relations Commission (the “WRC”) decisions and issues legally binding and enforceable decisions. Decisions of the Court may be referred by either party to the High Court by way of an appeal on a point of law or by way of judicial review.

The Annual Report demonstrates that the Court is navigating an increasingly complex caseload while maintaining its core function as Ireland's court of last resort for workplace disputes.

Key Statistics and Some Notable Trends

In 2025, there has been an 11% decrease in the number of referrals/appeals to the Court, falling from 1,119 in 2024 to 992. However, given the increasing complexity of cases and the number of sitting days required to complete some appeals, this does not necessarily equate to a reduction in workload.

Employment rights appeals accounted for 78% of the Court's total cases (being 775, down 14% from 885 in 2024). Referrals and appeals under the Industrial Relations Acts 1946 to 2015 accounted for the remaining 22%, with industrial relations referrals decreasing by 7% (from 234 in 2024 to 217). A total of 270 cases were withdrawn during 2025, with 81 of those withdrawals relating to cases which had already been scheduled for hearing, impacting significantly on the Court's capacity to manage its resources effectively.

The most common statutory appeals before the Court in 2025 were:

• Unfair Dismissals (147 appeals, up 9% on 2024);
• Employment Equality (151 appeals);
• Payment of Wages (113 appeals, down 29% on 2024); and
• Organisation of Working Time (90 appeals, down 27% on 2024).

Employment Rights Cases in 2025

Age Discrimination

In Irish Prison Service v Don Culliton (EDA256), the Court dismissed an appeal alleging age discrimination arising from pay disparity between the appellant and a director-level comparator. The appellant argued that a job advertisement requiring "a minimum of 7 years managerial experience in a healthcare/health services or related field" constituted an "age proxy" and was an example of direct discrimination. The Court rejected this argument, finding that the higher pay originated from the comparator's lawful appointment to a director role, where the alternative eligibility criterion was objectively justified due to recruitment challenges during decentralisation.

In An Garda Síochána v Tom Ronan (EDA2560), the Court set aside a WRC decision which found that a civilian driver was discriminated against on grounds of age when forced to retire at age 70. The Court found that forced retirement at 70 was not discriminatory but rather an implementation of state policy, noting that in Mallon v The Minister for Justice [2024] IESC 20 the Supreme Court upheld the State's policy of a mandatory retirement age of 70 as being entirely consistent with the jurisprudence of the CJEU.

Employment Status and the Karshan Test

In Department of Education v Piggott (TED255), a home tutor sought recognition that they had a contract of service with the Department of Education. The Court found that the arrangements in place were not consistent with a contract of employment between the parties, as the Department merely acted as a payroll agent administering grants paid to parents who directly engaged tutors. Applying Revenue Commissioners v Karshan (Midlands) Ltd T/A Domino's Pizza [2023] IESC 24, the Court determined that the Department did not exercise sufficient control over how the tutoring service was provided.

Reinstatement as a Remedy for Unfair Dismissal

In Contemporary Music Centre Clg v Linda O'Shea Farren (UDD2538), the Respondent conceded that the dismissal was unfair at both the WRC and the Court. The Appellant sought reinstatement; however, the Court found that reinstatement or re-engagement were not appropriate remedies, referring to O'Siurd v Bord Bainistíochta [2024] IESC 38, and held that compensation was the appropriate remedy. The Court further reduced the total financial loss awarded by the WRC by 30% to reflect the measures adopted by the Appellant to mitigate her loss. This case has been appealed to the High Court.

High Court Appeals of Court Decisions

There were notable point of law appeals of Court decisions to the High Court in Charpentier v Verizon Ireland Ltd [2025] IEHC 628 (“Charpentier”) and Debenhams Retail Ireland (In Liquidation) v Jane Crowe [2025] IEHC 141 (“Debenhams”).

These cases considered specific aspects of the law relating respectively to European Works Councils (“EWCs”) and collective redundancies.

While the High Court found the Court erred in its narrow interpretation of the law in Charpentier, this was the first Irish case examining the Transnational Information and Consultation of Employees Act 1996 (“TICEA”) and EU Directive 2009/38/EC on EWCs. Leave to appeal to the Supreme Court has since been granted.

In Debenhams, the High Court provided clarification on the interpretation of consultation requirements in collective redundancy situations and commented on the appropriate approach to compensation for breaches of the Protection of Employment Act 1977.

These decisions are a reminder for employers of the evolving nature of Irish employment law and the importance of obtaining legal advice at the earliest opportunity when such matters arise.

Review of Industrial Relations and Other Notable Developments in 2025

In 2025, the Court had another busy year dealing with industrial disputes covering approximately 21,000 workers. This figure rises to over 90,000 when the Court's role in the making of Employment Regulation Orders (“EROs”) is included, spanning the Contract Cleaning sector (covering 20,000 workers), the Security sector (covering 16,000 workers) and the Early Learning and Childcare sector (covering 35,000 workers). This highlights the crucial role that the Court, as the "court of last resort," plays in maintaining the industrial stability of the country.

In 2025, 30%of the industrial relations referrals to the Court involved joint referrals of a collective bargaining nature by workers and employers, covering several issues including pay agreements, re-organisation, and shift cycles. An overview of some of the notable industrial relations disputes handled by the Court in 2025 is set out below.

Bus Éireann and five Trade Unions (CD/25/121)

This was a claim in respect of several issues including a pay rise, an increase in night work allowance and an increase in subsistence payments. The Court’s recommendation, which provided for pay increases of 6.75% over the two calendar years 2025 and 2026, as well as higher subsistence payments and an increased night work allowance, was accepted by a 62% margin in an aggregate ballot of all five unions.

Kyte Powertech and SIPTU (CD/25/97)

The Court's recommendation on pay at this Cavan-based automotive parts manufacturer was backed by over 400 SIPTU workers by an 81% margin. The Court recommended a two-year pay deal of 7.75%, in two phases of 4.5% from 1 January 2025 and 3.25% from 1 January 2026, with a small increase in voucher payments.

National Ambulance Services and SIPTU/UNITE (CD/25/123)

This dispute concerned a modernisation programme for the National Ambulance Service. While substantial agreement had been reached through WRC-facilitated talks, a disagreement arose over whether a new pay scale for paramedics would be phased or implemented altogether. The Court recommended that the agreed pay scales be introduced from 1 August 2025 without phasing but did not recommend retrospection. The recommendation was rejected by ballot of the workers and the issues remain unresolved.

Industrial Relations- Committees, Orders, Agreements and Sectoral Employment Orders

The Industrial Relations Acts 1946–2015 provides for Joint Labour Committees (“JLC’s”), which set statutory minimum pay rates and employment conditions in specific sectors through EROs. When a JLC drafts ERO proposals, it must publish them and invite public submissions. If the Court approves the proposals, they are forwarded to the Minister for Enterprise, Tourism and Employment who makes an ERO giving the proposals legal effect.

The following EROs came into effect during 2025:

• A new ERO for the Security Industry came into effect on 22 July 2025 (SI No. 326 of 2025), amending the 2024 ERO and setting statutory minimum rates of pay and other conditions for persons employed in the security sector.
• The Contract Cleaning Industry ERO 2025 came into effect on 17 October 2025 (SI No. 430 of 2025), fixing statutory minimum rates of pay and other conditions of employment for workers in the contract cleaning industry.
• New EROs for the Early Learning and Childcare sector came into effect on 13 October 2025 (SI Nos. 477 and 478 of 2025), amending the 2024 Order and providing for minimum hourly rates of pay and other conditions of employment in the sector.

Registered Employment Agreements (“REAs”)

An application was made during 2025 for the variation of the REA (Veterinary Ireland), which was recommended by the Court in September 2025 and signed into law in January 2026.

A further application was received from Connect Trade Union in relation to the variation of the REA for the Overhead Powerline Industry.

Sectoral Employment Order

The Court gave notice during 2025 of its intention to conduct an examination into terms and conditions in the Commercial Archaeology sector, following a request from a trade union of workers.

Key Observations from the Court's Annual Report 2025

• Employers and their advisors should expect hearings before the Court to require more thorough preparation than ever before.
• The application of the Karshan test continues to be a significant area of litigation before both the WRC and the Court. Employers should review their working arrangements carefully to ensure they accurately reflect the true nature of the working relationship.
• The Court's decision in An Garda Síochána v Tom Ronan (EDA2560), finding that forced retirement at 70 was consistent with state policy and Supreme Court jurisprudence in Mallon v The Minister for Justice [2024] IESC 20, is significant. However, the fact that the case has been appealed to the High Court is a reminder that this area of law remains contested. Employers should ensure that any mandatory retirement age in their contracts is objectively justified and supported by appropriate policy.
• The Court's decision in Contemporary Music Centre v O'Shea Farren (UDD2538) confirms that, even where a dismissal is conceded as unfair, reinstatement will not automatically follow. However, the appeal to the High Court may provide further guidance on the circumstances in which reinstatement ought to be considered. Watch this space.
• Employers in unionised sectors should monitor Court recommendations carefully, as they frequently set the benchmark for pay negotiations across industries.

Our RDJ Employment Team has extensive experience advising employers in front of the Court in employment rights and industrial relations disputes. Please reach out with any queries arising from this Report, and we would be happy to assist.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.