Payroll Risks on the Rise: Lessons from the latest Labour Court Annual Report

The Labour Court’s 2024 Annual Report has just recently been published, and it offers a revealing snapshot of the current employment landscape in Ireland, especially for payroll and HR professionals navigating increasingly complex compliance demands. With over 1,100 appeals and referrals, and a growing reliance on virtual and hybrid hearings, the message is clear: payroll processes must be watertight, transparent, and audit-ready. 

Here’s what you need to know and do to stay ahead. 

Of the 1,119 cases referred to the Labour Court in 2024, 79% involved employment rights, with unfair dismissal, wage disputes, and equality breaches making up nearly half. These trends highlight recurring vulnerabilities in: 

• Dismissal procedures
• Equal pay assignments
• Timely and accurate wage payments 

For payroll teams, this underscores the importance of precision, documentation, and proactive collaboration with HR and legal departments. 

The Labour Court continues to adjudicate on familiar but avoidable payroll issues: 

1. Underpayment or Non-payment of Wages 
   Example: Overtime or Sunday premiums not paid as agreed 
   Payroll Tip: Ensure payslips and time records match contractual obligations
2. Unlawful Deductions 
   Example: Deducting uniform costs without written consent 
   Payroll Tip: Always secure and document employee consent
3. Holiday Pay Miscalculations 
   Example: Excluding commissions or bonuses from holiday pay 
   Payroll Tip: Use rolling averages (13 or 52 weeks) for variable pay
4. Missing Written Terms 
   Example: No written statement of employment within 5 days 
   Payroll Tip: Automate onboarding documentation and deadlines
5. Equal Pay Claims 
   Example: Gender-based pay disparities for like work 
   Payroll Tip: Conduct regular pay audits and document justifications 

See also: How to Create a Gender Pay Gap Reporting Strategy 

Here’s a quick checklist to help payroll teams align with legal obligations and reduce risk: 

While the Labour Court handles appeals, the Workplace Relations Commission (WRC) is ramping up inspections and enforcement: 

• 5,156 workplace inspections in 2024
• €2.15 million recovered in unpaid wages
• 27% rise in prosecutions
• 894 mediations delivered, up 14% 

This proactive enforcement means payroll teams must be responsive, compliant, and audit-ready—not just reactive. 

The 2024 Labour Court Report is a wake-up call for payroll and HR teams. With disputes around pay and dismissal procedures driving a significant volume of appeals, now is the time to: 

• Review your payroll systems
• Digitise your documentation
• Collaborate closely with HR and legal
• Prepare for virtual hearings and inspections