Aug 27, 2025

Ireland's Work-Life Balance Act 2023: Payroll Compliance Requirements Every Employer Must Know

Published: August 2025
Author: Amergin Consulting Ltd.
Target Audience: SME Owners, HR Managers, Finance Directors

Book a meeting: https://calendly.com/amergin-group_free/30min?back=1&month=2025-08

Executive Summary

Irish small and medium enterprises are now facing sweeping new obligations under Ireland's Work-Life Balance Act 2023—changes that could trigger costly disputes and workplace disruption if handled poorly, or boost loyalty and productivity if managed proactively. Enacted on 4 April 2023, this legislation introduces groundbreaking employee rights: five days of paid domestic violence leave and five days of unpaid medical care leave annually, plus new rights to request flexible or remote working.

Most SMEs remain unprepared: industry sources indicate that a majority have yet to fully implement the required changes, leaving them exposed. With approximately one in nine employees juggling caring duties and one in four women and one in seven men experiencing domestic abuse in their lifetimes, the odds are that eventually someone in your organisation will need these new supports. Non-compliance isn't an option; workers can now bring claims to the Workplace Relations Commission (WRC) if their new rights are infringed, with potential awards up to 20 weeks' wages in compensation.

On the upside, forward-thinking companies that embrace these changes stand to gain a competitive edge. Research shows flexibility and work-life balance are key drivers of engagement and retention. 85% of businesses report increased productivity with flexible work policies, and offering remote work options has cut employee turnover by 25% on average. In short, compliance can pay off.

This guide distills what Irish employers—especially SMEs—need to know about the Work-Life Balance Act 2023 and how to stay compliant through payroll and HR practices. We break down the new leave entitlements, the rights to request remote or flexible working, and the practical steps you must take to meet these obligations. We also highlight the hidden risks of ignoring the rules, and how smart SMEs can turn these mandates into opportunities to improve morale and retention.

The reality is clear: fail to prepare and you risk costly compliance failures when you can least afford them—but prepare well, and you'll build a healthier, more resilient organisation.

Work-Life Balance Act 2023 Quick Facts

Signed into Law: 4 April 2023 (effective in stages late 2023 – early 2024)

Coverage: 250,000+ Irish businesses affected
Employee Impact: All employees with 6+ months service (remote work) or 26+ weeks service (flexible work for carers)

New Leave Entitlements:

5 days paid Domestic Violence Leave per 12 months
5 days unpaid Medical Care Leave per 12 months

Key Timelines:

8 weeks advance notice required for flexible/remote work requests
4 weeks maximum response time (extendable to 8 weeks)
3 years mandatory record-keeping period

Penalties:

Up to 20 weeks' pay for flexible work or leave-related breaches
Up to 4 weeks' pay for remote work claim breaches
€2,500 fines for record-keeping violations

SME Compliance Status: Only 10% report full compliance currently

1. New Leave Entitlements: Domestic Violence Leave & Medical Care Leave

The Work-Life Balance Act 2023 introduces two significant leave entitlements that Irish employers must accommodate:

Statutory Domestic Violence Leave – 5 Days Paid

Employees who are victims of domestic violence (or supporting a dependent who is a victim) are now entitled to up to five days of paid leave in any 12-month period. Ireland is one of the first EU countries with statutory domestic violence leave, intended to give victims time to seek medical attention, counselling, legal advice, protection orders, or to relocate as needed.

Key requirements:

Paid by employer at normal daily rate—no loss of earnings
No advance notice required—domestic crises arise suddenly
No proof required—employers cannot demand police reports or medical notes
Strict confidentiality—information must be handled with sensitivity
Individual days only—no half-day entitlements

Leave for Medical Care Purposes – 5 Days Unpaid

Employees gain the right to up to five days of unpaid leave per year to provide personal care or support to a family member or household member who needs significant care for a serious medical reason.

Eligibility covers care for:

Spouse, civil partner, or cohabitant
Parent, grandparent, or sibling
Child under 12 (or under 16 with disability/long-term illness)
Person living in same household

Requirements:

Written notification using prescribed form
Statement of facts describing medical reason and relationship
Evidence permitted—employers may request medical certificates
Unpaid leave—no salary compensation required
Day-by-day basis—no half-day entitlements

Payroll Implementation Requirements

From an employer perspective, the introduction of these leaves means immediate HR and payroll practice adjustments:

Update leave policies to include new categories
Configure payroll systems with "Domestic Violence Leave" pay code
Ensure 100% pay rate for DV leave (not 70% like sick pay)
Log unpaid medical care leave without triggering other accruals
Maintain accurate tracking—law requires 3-year record retention
Train managers on confidential handling procedures

Both entitlements are additional to existing leave arrangements and don't reduce annual holiday or affect other statutory leave.

2. Right to Request Remote & Flexible Work: New Obligations for Employers

Beyond leave, the Work-Life Balance Act significantly expands employees' ability to seek flexible working arrangements through two related rights commenced on 7 March 2024.

Right to Request Flexible Working (Parents and Carers)

Eligible employees with family caregiving responsibilities can request changes to working arrangements to help balance duties.

Eligibility criteria:

26 weeks continuous service minimum
Parent of child up to age 12 (or 16 with disability/illness)
Carer for spouse, partner, parent, grandparent, sibling, or household member needing significant care

Flexible arrangements can include:

Temporary part-time hours
Schedule or pattern changes
Compressed working hours
Other arrangements for specified duration

Right to Request Remote Working (All Employees)

All employees with at least 6 months' service have a legal right to request remote working arrangements—either fully or partially remote.

This reform:

Repealed the standalone Remote Work Bill
Removed mandatory written remote work policy requirement
Applies to all employees, not just carers
Covers full or partial remote arrangements

Legal Timeline and Process Requirements

Employee obligations:

8 weeks advance notice before desired start date
Written application detailing arrangement sought
Reason specification (especially for flexible work requests)

Employer obligations:

4 weeks maximum response time from receipt
Three possible responses: approve, refuse, or extend assessment (up to 8 additional weeks)
Written reasons required if refusing request
Good faith consideration of employee needs and business impact

Refusal Grounds (per WRC Code of Practice):

Role unsuitability for remote work
Quality or performance concerns
Disproportionate accommodation burden
Inability to reassign work
Planned structural changes
Substantial adverse business effects

Dispute Resolution

The WRC cannot override employer decisions on merit but can assess procedural compliance. Breaches include:

Ignoring requests or missing deadlines
Failing to consider employee needs
Not providing written refusal reasons
Procedural non-compliance

Maximum penalties:

20 weeks' pay for flexible working breaches
4 weeks' pay for remote working breaches

3. The Penalty Risk: Why Non-Compliance Could Hurt Your Business

The Work-Life Balance Act 2023 carries real enforcement consequences for Irish employers who ignore or mishandle obligations.

WRC Claims and Financial Awards

Primary enforcement occurs through WRC adjudication (with Labour Court appeals). Employees can lodge complaints for:

Unjust refusal of remote/flexible work requests
Being blocked or penalised for taking leave
Non-payment for domestic violence leave

Financial impact perspective:

20 weeks' pay = approximately 5 months' salary
Mid-level employee (€40,000): potential €16,000 award
4-week remote work penalty: €2,000-€3,000+ depending on salary
Multiple employee claims: costs multiply exponentially

Record-Keeping and Inspection Risks

WRC Inspectors conduct compliance inspections and expect:

Complete leave records for DV and medical care leave
3-year retention of all documentation
Proper payroll classification and tracking

Violations can result in:

Class C fines up to €2,500
Compliance notices with correction deadlines
Prosecution for serious neglect (rare but possible)

Penalisation Protection

The Act explicitly prohibits retaliation for exercising rights, including:

Dismissal or suspension
Hour reductions or benefit withdrawal
Negative evaluations due to leave/requests

Consequences:

Standard unfair dismissal claims (up to 2 years' salary)
Additional WLB Act penalties (20 weeks' pay)
Constructive dismissal claims for hostile treatment

Common Compliance Pitfalls SMEs Make

"We didn't know" defence: Legal ignorance provides no protection
No process establishment: Requests slip through cracks, deadlines missed
Improper refusal reasons: Knee-jerk "no" responses without business justification
Request dismissal: Mocking or discouraging legitimate requests
Record-keeping failures: Missing documentation during inspections

Reputational Consequences

Beyond financial penalties:

WRC decisions published online (employers named)
Social media and talent market reputation damage
Current employee trust erosion
Future recruitment difficulties

Non-compliance represents false economy—penalties far exceed upfront compliance investment.

4. Strategic Advantage: Turning Compliance into Competitive Benefit

Forward-thinking SMEs are leveraging Work-Life Balance Act compliance as a strategic advantage rather than viewing it as mere regulatory burden.

Enhanced Recruitment and Retention

Current workforce expectations:

80% of employees consider flexible work options key job factors
87% expect employer support for work-life balance
25% turnover reduction observed with remote work options
85% of businesses report productivity increases with flexible policies

Financial retention benefits:

Employee replacement costs: 20% of annual salary
SME average: €12,000-€18,000 per replacement
Institutional knowledge preservation
Reduced recruitment and training expenses

Productivity and Engagement Benefits

Work-life balance support drives:

Higher employee morale and engagement
Reduced stress and burnout
21% more high performers in wellbeing-focused companies
Discretionary effort and loyalty increases

Operational Advantages

Reduced unplanned absenteeism through structured leave options
Stable, predictable workforce planning
Faster domestic violence victim support (preventing long-term disruption)
Mental health improvements reducing sick leave

Market Positioning Benefits

SMEs can compete with larger corporations through:

Personal, understanding work environments
Flexibility advantages over rigid corporate policies
Enhanced client service through stable, experienced staff
Employer of choice reputation in tight talent markets

Risk Mitigation Value

Beyond penalty avoidance:

Reduced legal exposure and tribunal risks
Enhanced employee relations and trust
Proactive compliance culture development
Future regulatory change preparation

Smart implementation creates virtuous cycles: supported employees perform better and stay longer, improving business results and enabling continued investment in employee support.

5. The Amergin Advantage: Ensuring Seamless Compliance and Support

Adapting to the Work-Life Balance Act 2023 requires expertise across legal, HR, and payroll domains. Amergin Consulting Ltd. specialises in helping Irish SMEs navigate complex regulatory changes, transforming compliance obligations into strategic advantages.

Why SMEs Choose Amergin for WLB Act Compliance

Our comprehensive approach combines:

Deep legal expertise in Irish employment law
Practical HR implementation experience
Hands-on payroll system knowledge
Strategic business advisory capabilities

Complete Implementation Service

Policy and Documentation Development:

Audit existing contracts, handbooks, and leave policies
Provide bespoke, legally-compliant policy additions
Tailor documentation to company size and culture
Ensure clear employee understanding and manager guidelines

Payroll System Integration:

Configure systems for new leave types and payment rules
Ensure domestic violence leave 100% pay rate compliance
Set up unpaid leave tracking without accrual triggers
Train payroll administrators on classification and reporting

Manager Training and Change Management:

On-site or virtual supervisor training sessions
Real-world scenario practice and role-playing
Timeline and documentation requirement emphasis
Internal communication strategy development

Ongoing Compliance Support:

On-call HR compliance partnership
Regular policy updates for regulatory changes
Periodic compliance audits and assessments
WRC decision monitoring and guidance updates

Business Continuity Focus:

Absence coverage planning and contingency development
Cross-training recommendations and temp agency partnerships
Remote/flexible work agreement drafting
Clear expectation setting and review procedures

Expected Investment vs. Returns

Professional service investment:

Full implementation: €3,000-€6,000 (depending on company size)
Ongoing support: €1,200-€2,400 annually
Training programmes: €800-€1,500 per session

Risk avoidance benefits:

WRC penalty prevention: €5,000-€50,000+ potential savings
Employee retention value: €12,000-€18,000 per retained employee
Implementation error cost avoidance: €2,000-€10,000

ROI demonstration: Retaining even one employee through improved work-life balance policies typically offsets entire professional service investment.

Our Proven Four-Pillar Framework

Pillar 1: Legal Compliance Audit

Comprehensive gap analysis against Act requirements
Customised action plan development
Risk assessment and mitigation strategies

Pillar 2: Implementation & Training

Side-by-side change implementation
Document drafting and system setup
Interactive training workshops with feedback incorporation

Pillar 3: Employee Engagement

Positive change communication strategies
Q&A materials and information session planning
Culture adaptation guidance and support

Pillar 4: Monitoring & Support

Issue troubleshooting and case review
Outcome measurement and optimization
Continuous improvement recommendations

Over 500 Irish businesses have successfully navigated regulatory transitions with Amergin's expertise, from GDPR to Brexit and now work-life balance compliance.

Your Next Steps: Work-Life Balance Act Action Plan

Immediate Actions (Next 30 Days)

Policy Audit and Planning

Review existing leave policies and employee handbook
Identify sections requiring updates for new entitlements
Draft basic policy framework if none exists
Mark employment contracts needing amendments

Management Communication

Inform supervisors about new legal obligations
Set expectations for implementation timeline
Emphasise importance of proper request handling
Establish HR escalation procedures

Payroll System Preparation

Contact payroll provider for WLB Act guidance
Test system capacity for new leave categories
Verify domestic violence leave 100% pay capability
Create simple tracking spreadsheet for 5-day entitlements

Compliance Foundation

Download WLB Act compliance checklist
Update statutory leave information displays
Schedule all-hands meeting agenda inclusion
Begin manager training material collection

60-Day Implementation Targets

Policy Rollout

Finalise and circulate updated policies to all staff
Provide clear application procedures and contact points
Reassure employees about confidentiality and support
Establish defined request processing channels

Manager Training Delivery

Conduct supervisor training workshops
Practice real-world scenario handling
Emphasise timeline compliance and documentation
Role-play sensitive conversation management

Documentation Systems

Create dedicated WLB Act record-keeping files
Prepare request logging templates and forms
Draft response letter templates (approval/refusal/extension)
Establish 3-year retention procedures

Process Testing

Conduct internal dry-run simulations
Time decision-making workflows
Test manager escalation procedures
Adjust processes based on trial feedback

90-Day Compliance Readiness

Outstanding Issue Resolution

Address implementation challenges discovered
Develop absence coverage solutions
Ensure formal documentation exists
Finalise backup procedures

Final Compliance Verification

Complete comprehensive checklist review
Verify all systems, training, and policies operational
Consider external audit for assurance
Address any remaining gaps

Employee Support Communication

Announce availability of new supports
Encourage open communication culture
Establish confidential consultation options
Set positive tone for rights utilisation

Monitoring and Adaptation

Track request volumes and handling
Solicit anonymous employee feedback
Identify clarification needs
Plan first-year learning period adjustments

Following this 90-day plan positions SMEs for full compliance while maximising employee engagement and business benefits.

Conclusion: Compliance, Culture, and Competitive Advantage

The Work-Life Balance Act 2023 represents a permanent transformation in Irish employment standards. For SMEs, this creates either significant compliance risks or strategic competitive advantages—the outcome depends entirely on implementation approach.

Current reality check:

Only 10% of businesses report full compliance currently
Domestic violence disclosures increased 17% in 2024
Remote working requests have become routine business
WRC enforcement framework is robust and active

Success determinants:

Proactive policy development and manager training
Integrated technology solutions and record-keeping
Professional guidance utilisation where needed
Employee engagement and culture adaptation

The companies thriving through this transition are those responding proactively rather than reactively. They recognise that supporting employees as whole people creates virtuous cycles of performance, retention, and business success.

Strategic choice framework:

Reactive compliance: Risk penalties, employee dissatisfaction, competitive disadvantage
Proactive compliance: Avoid penalties, maintain employee relations, baseline competitive position
Strategic implementation: Transform requirements into competitive advantages, enhanced culture, market differentiation

Ready to Turn Compliance into Competitive Advantage?

Don't wait for WRC complaints or problematic requests to force action. Implement changes strategically while you have time for thoughtful planning.

Amergin Consulting Ltd. offers a complimentary 45-minute Work-Life Balance Strategy Session for SME leaders ready to get ahead.

In this no-obligation consultation, we will:

Assess your current WLB Act readiness through targeted policy and workforce questions
Identify business-specific risk areas requiring attention
Outline tailored compliance roadmap with immediate implementation actions
Answer pressing questions about Act requirements and procedures

Whether you need extensive support or basic guidance, you'll finish with:

Clear understanding of compliance requirements
Specific action plan for your business situation
Risk mitigation strategies and timelines
Useful implementation blueprint

Secure your free consultation:

Schedule your free 45-minute consultation

Email us: info@amerginconsulting.com
Book a meeting: https://calendly.com/amergin-group_free/30min?back=1&month=2025-08

Preparing for Work-Life Balance Act compliance isn't just penalty avoidance—it's positioning your business to thrive in Ireland's evolving employment landscape. With Amergin's expertise, achieve 100% compliance confidence while unlocking the full benefits of happier, more dedicated employees.

Act now to ensure your company isn't just compliant, but stronger and more resilient because of these changes. We look forward to partnering with you to build a workplace that supports your people and propels your business forward.

About Amergin Consulting Ltd.

Amergin Consulting Ltd. is a Dublin-based consultancy specialising in Irish corporate compliance and SME regulatory advisory services. With a proven track record of successfully guiding over 500 Irish businesses through major regulatory transitions—from GDPR data protection reforms to Brexit adjustments, pension auto-enrolment, and now the Work-Life Balance Act—we combine deep legal knowledge with practical implementation expertise.

Our team understands the unique challenges SMEs face and provides hands-on support tailored to your specific needs. We pride ourselves on not only ensuring full legal compliance for our clients but also identifying efficiencies and competitive advantages throughout the process. Our comprehensive services span HR compliance, payroll consulting, training delivery, and strategic planning, all delivered with a personal touch that reflects our commitment to SME success.

Let us help you turn compliance challenges into opportunities for organisational growth and improvement.

Disclaimer: This publication provides general information and does not constitute legal advice. While every effort has been made to ensure accuracy as of the publication date, employment law and guidance may evolve. Employers should consult with qualified professional advisors or legal counsel for advice on specific situations and to stay updated on any changes or further regulations related to the Work-Life Balance Act 2023. Compliance with the Act remains the responsibility of each employer, and failure to comply can result in legal consequences. Amergin Consulting Ltd. accepts no liability for actions taken based on information provided in this document without seeking personalised professional advice.