Do I Need to Update My Employment Contracts for 2026?

Auto-Enrolment Has Arrived

My Future Fund - Ireland's auto-enrolment pension scheme - went live on 1 January 2026. Every eligible employee (aged 23-60, earning over EUR 20,000 per year, not already in a qualifying pension scheme) must be automatically enrolled. Employers must contribute 1.5% of gross salary in the first year, rising over subsequent years. The State adds an additional 0.5% top-up.

If your employment contracts were drafted before 2026, they almost certainly do not reference auto-enrolment. While the statutory obligation applies regardless of what your contract says, your contracts should be updated to reflect pension contributions, opt-out provisions (employees can opt out after 6 months), and how auto-enrolment interacts with any existing pension schemes you offer.

The Karshan Employment Status Test

Although the Karshan Supreme Court decision was handed down in 2023, its practical impact has intensified in 2025 and 2026 as Revenue has stepped up enforcement. The Revenue reclassification amnesty ended in January 2026 - meaning late compliance now carries full penalties. If your business uses freelancers or contractors, your employment contracts and freelancer contracts must be structured to clearly delineate between employees and genuine contractors.

Employment contracts should include provisions that are clearly consistent with employee status: control over work methods, set working hours, company equipment, and integration into the team. This sounds obvious, but many older contracts contain ambiguous language that could be read either way.

Work Life Balance and Remote Working

The Work Life Balance and Miscellaneous Provisions Act 2023 introduced new rights including the right to request remote working and the right to request flexible working. While employers are not obliged to grant these requests, they must have a process for considering them and can only refuse on specified grounds. Employment contracts should address: the process for requesting remote or flexible working, how the company handles such requests, data protection obligations for remote workers, and any home office equipment provisions.

Retirement Age Changes

The Employment (Contractual Retirement Ages) Act 2025 changed the rules around mandatory retirement ages. Employers can no longer enforce a contractual retirement age below 66 without objective justification. If your existing contracts specify retirement at 65 (which many do), they need to be updated. Employees who reach their contractual retirement age now have the right to request to continue working, and employers must consider the request.

What to Update Now

If your employment contracts were last updated before 2026, they likely need changes in at least four areas: auto-enrolment pension provisions, Karshan-conscious employment status language, remote and flexible working request procedures, and retirement age provisions compliant with the 2025 Act. Updating now protects you from WRC complaints, Revenue audits, and employee disputes.

You do not necessarily need to issue entirely new contracts. A contract addendum or variation letter covering the changes may be sufficient, provided both parties agree. However, for new hires, issuing a fully updated contract is the cleaner approach.

This is a self-service document generation tool. It does not constitute legal advice. For complex or high-value situations, we recommend consulting a solicitor.