Overview
Located in the North Atlantic Ocean to the west of Great Britain, Ireland has a population of about 5.1 million.
The country’s economy primarily relies on its service-based industries. The Republic of Ireland also has some of the best and most highly educated workforce in the world. For businesses that are looking forward to hiring contractual or full-time employees from Ireland, setting up an entity may be an option.
However, registering a legal entity is a time-consuming and expensive affair.
An easier alternative to this is using an Employer of Record in Ireland who can handle all the administrative tasks, such as payrolls, taxes, compliances, etc., on behalf of the employer.
An Ireland Employer Of Record service like Skuad can help companies grow and expand into new territories. With a vibrant economy and a low corporate tax rate, Ireland is a fantastic place for a company to hire talent and operate.
However, it is not easy to hire employees or set up operations remotely, as there are several laws and regulations that need to be taken into account.
One must also consider payroll taxes, workers’ compensation, liability insurance, employers’ contributions to pension funds, etc.
Companies can take advantage of Employers Of Record (EOR) organizations like Skuad, whose services unburden them from such issues so that they can focus on core business functions. Learn about our offerings here.
Additionally, you can use our employee cost calculator to give an accurate estimate—you only have to feed the data. This will make it easy for both parties to plan with their respective expansion ideas.
Ireland at a Glance
- population: 5.1 million
- Currency: Euro
- Capital: Dublin
- Languages spoken: Irish and English
- GDP: USD 533.14 billion
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Talk to an expertEmployment In Ireland
Ireland’s GDP per capita is one of the highest in the world. The reason for this is the low corporate taxes that have attracted big companies there.
These companies often set up their headquarters there, and all economic activities and underlying intellectual property are connected to these headquarters.
However, there is significant wealth inequality in Ireland, and the minimum wage in Ireland is just €10.20 per hour.
Ireland’s laws come into operation even before employment begins. Employers are prohibited from misrepresenting the terms of employment in job advertisements or during the interview process, which can result in lawsuits.
Moreover, employers must comply with equality and access to employment regulations when looking for candidates.
Ireland does not have a consolidated labor law. Instead, it has several labor laws that govern different industries and aspects of employment.
The Payment of Wages Act, of 1991 enumerates the approved payment method for employers.
The Maternity Protection Act of 1994 and 2004 guarantees 26 weeks of maternity leave for expecting mothers.
Entitlements | Explanation |
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Employment Equality Acts 1998-2015 | This Act prohibits discrimination based on nine grounds, namely: age, disability, family status, gender, race, religion, sexual orientation, and membership of the traveler community. It promotes equality, bans sexual harassment in the workplace, and enables employers to take positive actions to ensure equality. |
Payment of Wages Act, 1991 | The Payment of Wages Act gives employees the right to get a payslip that contains the amount of gross salary and any deductions to be paid. It enumerates the approved methods of payment to employees. Deductions from pay are only allowed in specified circumstances, such as when it is required by law, provided for in the terms of employment, towards pension, etc. |
Safety, Health, and Welfare at Work Act 2005 | This Act enhances the responsibility of employers, employees, the self-employed, and other parties towards creating a safe workplace for all. It fixes the roles and responsibilities of the health and safety authorities. It contains the health and safety guidelines for workplaces along with penalties for different safety violations. |
Minimum Notice & Terms of Employment Act 1973 - 2005 | Employees have the right to get a minimum of one week’s notice before they are terminated. The minimum notice period increases with the tenure of the employee. Employers are not obliged to give notice only in cases of misconduct or when the employee has worked for less than 13 weeks. |
Companies must ensure they know and comply with the relevant labor laws. Alternatively, they can leave this to an organization like Skuad that handles employee payments, payroll taxes, compliance issues, and other relevant matters. For payroll services in Ireland, click here.
Timings, holidays, and leave policies of Ireland
Entitlement | Explanation |
---|---|
Statutory Working Hours | The standard work hours in Ireland are 39 hours per week. According to legislation, the total working hours must not exceed 48 hours in a week. This is in line with the European Working Time Directive. |
Sick Leave | There is no sick leave policy in Ireland, and most employers decide on the sick leave policies. Moreover, employees have to get a medical certificate from a certified GP to get sick leave instead of deducting it from the annual leave. |
Break | Employees are entitled to get a 15-minute break after working for 4 hours and 15 minutes more after working for 6 hours. |
Public Holidays |
The official public holidays in Ireland are:
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Maternity Leave | Expecting mothers can get 26 weeks of maternity leave. In addition to this, they can avail 16 weeks of unpaid leave. |
Annual Leave Entitlement | The Organisation of Working Time Act of 1997 provides for an annual leave of 4 weeks in a year. Employees can negotiate for more annual leave in their terms of employment. |
Hiring In Ireland
The recruitment process in Ireland is just like that of any other developed economy. Candidates find jobs through recruitment agencies, social media, connections, and job websites.
Recruitment agencies are a popular route for job seekers in Ireland. These agencies sift through the thousands of CVs they receive and try to match candidates with jobs that suit their qualifications.
A good thing about recruitment agencies in Ireland is that they cannot charge for their services.
Job websites are a huge part of the job market in Ireland. They are efficient and open up plenty of opportunities for candidates.
In recent years, many websites such as CareerBuilder, Irish Jobs, Monster, Recruit Ireland, etc., have facilitated the employment of millions of people in Ireland.
The Irish Government has also created organizations like the Local Employment Service Network (LESN) that help job seekers find jobs.
Companies looking to hire employees in Ireland can use the services of an EOR like Skuad to handle the recruitment process.
This saves precious time spent on the long-drawn process of hiring candidates and prevents you from the complications of understanding Irish labor laws.
The EOR handles everything from hiring to onboarding and all HR services. Contact Skuad for further information.
Scope of negotiating terms
Ireland’s job market was in an excellent position before the COVID pandemic hit. After recovering from the global recession in 2008, its unemployment rate fell to just 5%.
However, after the pandemic, things worsened, and unemployment rose sharply in the country.
Experts have said that with the rollout of the vaccines, the job market is expected to recover significantly in the coming months.
Employment contracts in Ireland are well negotiated by employees. With big companies arriving due to the low corporate tax rate, there is a huge demand for well-versed employees in any STEM subject.
Employers need to provide employees with a fair contract to attract excellent candidates. Potential candidates can drive a hard bargain, particularly from a well-known university.
In Ireland, there is not much scope for negotiation in blue-collar jobs.
However, with the rising costs, millennials are challenging the status quo, and the discontent is growing slowly.
In the future, we might see the new generations fighting to increase wages.
EOR Solution
An Employer of Record (Ireland EOR) solution makes it easier and smoother for companies to expand into the country. Companies have to take on a range of employment responsibilities when expanding. These responsibilities can easily be taken care of by an EOR like Skuad.
Additionally, with the help of Skuad's services, they can expand without establishing an entity in the country. Skuad can help you with payroll management, payroll taxes, work permits, and other responsibilities in Ireland.
Click here to know more.
Setting up an entity in Ireland
Owing to its strategic geographic location and welcoming ambiance, Ireland is a great place to establish a business entity.
Ireland has some of the biggest foreign companies in the world. Business is booming in Ireland, and mainly due to the low corporate tax rate, there is a considerable increase in foreign multinational companies in Ireland.
Foreign investors can own 100% of the subsidiary in Ireland, making it a fantastic place to set up a subsidiary.
Moreover, the subsidiary’s liability, in this case, will be limited to the share capital.
Subsidiaries are to be registered with the Companies Registration office.
These are the steps that companies need to take to form a subsidiary in Ireland:
1. Articles of Association (AOA)
The Articles of Association (AoA) are a crucial document for every company. They contain the company's name, office address, directors' names and addresses, purpose, shareholding pattern, and other important information.
2. Registration
Companies need to register with the Companies Registration Office. After the office is satisfied with the submitted documents, it will approve them and issue a letter of incorporation.
3. Registration with tax authorities
Companies need to register themselves with the relevant local tax authorities and must apply for a VAT number.
4. Corporate bank account
Companies need to start a corporate account, which will be used to conduct all transactions associated with the subsidiary. The minimum share capital needed for the subsidiary should be deposited in this account.
These are the key steps in the process. Forming a subsidiary in another country while keeping in mind several laws and regulations can be a tedious task.
Companies can take the help of Ireland EOR services like Skuad to take care of all the paperwork so that you do not have to worry about compliance and other issues.
Hiring employees in Ireland presents several challenges, and the complex labor laws may pose a considerable hurdle in your expansion plans.
However, there are some advantages to hiring in Ireland.
Pros
- Access to the EU market: The country's strategic location allows businesses to freely move capital, services, goods, etc.
- Skilled workforce: Ireland is home to a highly skilled and educated workforce.
- Low corporate tax rate: Ireland's corporate tax rate is 12.5%, one of the lowest in the European market.
- International connectivity: Its well-developed digital infrastructure and good air and sea connectivity make it an ideal location for many international businesses.
Onboarding and Agreements
What is onboarding?
Onboarding refers to the process employers use to integrate new employees into an organization after hiring through the employer of record services in Ireland.
It includes explaining the roles and responsibilities to the new employee and getting the individual acquainted with the organization’s culture.
How to successfully onboard employees in Ireland
After hiring employees through EOR Services in Ireland, it is important to follow these steps for the successful onboarding of new employees:
- Preparatory phase: Provide the employee with all the necessary tools and gadgets to execute the task. Share all the vital information and guidelines with the employee.
- Orientation: This may be in-person or virtual. The process aims to familiarize the new employee with the company culture and help set expectations.
- Training: Employers should arrange training sessions for new employees. These may be spread over days or weeks to ensure the employees acquire all the necessary skills.
- Regular check-ins: Managers of new employees should check on the new employees from time to time to understand the progress they are making or address the concerns they may be facing.
- Assigning a mentor: This helps create a safe space for the new employee and puts them at ease. It also fosters open communication.
- Evaluating: It is also important to gather feedback about the onboarding experience from the new employees.
Types of employment agreements
A standard employment contract for Ireland contains relevant information like gross pay, work hours, job responsibility, etc. An employee works under the terms of employment, whereas an independent contractor works under a contract of service.
An employee usually gets more benefits than an independent contractor. The employment contract law of Ireland says that the latter can be termed as an ‘employee’ if the working relationship between the service provider and recipient is that of an employer-employee in substance.
Employees are entitled to certain benefits that independent contractors do not get. They have the right to annual leave, maternity benefits, and not to be terminated without justification, to name a few.
In addition to this distinction, Irish law has different categories of workers. These are:
1. Permanent Employees
After the probation period, many employees get a permanent gig in the company, where they work for an indefinite period. Their employment status only changes when:
- They quit or change jobs.
- They are terminated for misconduct or breach of terms of employment.
2. Fixed Term Employees
Employees who work under a fixed-term contract of employment are called fixed-term employees. Irish law prohibits discrimination against fixed-term employees or any favorable treatment of permanent employees over fixed-term employees.
3. Zero-Hour Employees
According to The Organization of Work Time Act 1997, zero-hour employees are those whose terms of employment say that they have to be available on-call or work a specified number of hours every week. According to the Employment (Miscellaneous Provisions) Act of 2008, employers are prohibited from having zero-hour employees.
Onboarding Checklist
Looking to hire employees in Ireland? Make sure you keep this checklist handy:
- Send a welcome email. A personalized welcome email sets a positive tone, introduces company values, and outlines the new hire's next steps.
- Organize an orientation session to provide an overview of the company, its structure, culture, and key policies to help the employee integrate smoothly.
- Assign a mentor. Pairing the new employee with a mentor accelerates their learning process, offers guidance, and builds connections within the company.
- Arrange a session for the new hire to meet their team and key stakeholders, which will help them feel more comfortable in their new environment.
- Discuss the employee’s responsibilities and set short-term and long-term goals to clarify expectations and foster accountability.
- Show the employee around the office, including workspaces, meeting rooms, and amenities, so they become familiar with their surroundings.
- Gather feedback from the new employee to improve the onboarding process and address any initial concerns.
Work Permits
Ireland’s work permit for foreigners is an essential requirement for non-residents. Permission is usually only given to highly skilled and qualified workers rather than unskilled ones. It is not easy to get a work permit in Ireland.
Ireland work permit without a job offer
In Ireland, a work permit cannot be obtained without a job offer. Permission from immigration is only granted if your application has been accepted by an employer beforehand.
Taxes in Ireland
Let us now look at the Ireland tax brackets.
Tax | Explanation | |||||||||||||||
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Corporate Tax | The corporate tax rate in Ireland is just 12.5%, one of the lowest in the world. | |||||||||||||||
Income Tax Rates |
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Financial Year | 1st January - 31st December | |||||||||||||||
Universal Social Charge (USC) |
A Universal Social Charge (USC) is charged on an employee’s gross income before taxes, employees’ contributions to a pension fund, etc. The rates to be charged in 2021 are as follows:
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Employees Contribution to National Social Infrastructure Fund (Unemployment Insurance - Ireland) |
Employers, as well as employees, need to contribute to the National Social Insurance Fund. The fund is set up to provide security in case of future unemployment. The employees pay their contributions according to their class category. Here are the different classes of employees and the contributions they need to make: Employee PRSI - Class A Employees who make less than €352 per week do not need to pay anything. They are still covered by Class A insurance. Employees who make more than €352 per week need to pay 4$ on their earnings. Employees who make between €352.01-€424 per week can get a credit of up to €12. They have to pay €14 if they earn €352.01 per week. Subtracting the tax credit, they effectively need to pay €2. |
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Employers’ Contribution to National Social Insurance Fund |
Employers must pay 8.8% employer PRSI Class A on earnings of up to €398 per week. Employers must pay 11.05% employer PRSI Class A on earnings of more than €398 per week. |
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Payroll Tax - Ireland | Employers must deduct income tax, PRSI contributions, etc. | |||||||||||||||
Sales Tax (amongst the most significant employer taxes in Ireland) | The Value Added Tax (VAT) stands at 23% of the net value and 18.70% of the gross value of goods. | |||||||||||||||
Public Pension |
There are two systems in place for this. First is the contributory state pension system, which is a pay-as-you-go system. Only those employees who have made 520 full contributions are eligible to benefit from this. The benefits are paid after the age of 56. In addition, there is a non-contributory state pension system for those who can’t get the benefit of the first one. |
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Medical Insurance | Ireland relies on the private insurance sector for medical insurance for employees. Employees need to select their options and pay for the insurance themselves. Employers can decide to contribute and can get tax credits on such expenditures. |
The tax applies to foreigners working in Ireland according to the labor laws in Ireland. It applies to Irish income alone, not worldwide income.
Employer tax obligations
Employers also pay PSRI at the rate of:
- 8.9% on weekly earnings up to €496.
- 11.15% on weekly earnings over €496.
Social security contributions
Ireland has provisions for social insurance (PRSI), which is money paid for by the Social Insurance Fund. This money is utilized to pay for pension schemes and other social benefits.
Employers deduct the amount from the employee’s salary and pay it forward.
Employee tax deductions
The amount of PSRI an employee pays depends on their salary and the class under which the individual is insured. Following are the tax rates in the Republic of Ireland as deducted from employees:
- Employees earning €352 or less a week do not have to pay social insurance.
- Employees earning over €352 a week must pay 4.1% as PRSI.
VAT
The standard value-added taxes in Ireland rates are 23% with three reduced rates of 13.5%, 9%, and 4.8%.
Other tax contributions and incentives
Some other taxes in Ireland are:
- Corporate Tax
- Income Tax (Income tax rate in Ireland varies on a Pay as You Earn basis)
- Universal Social Charge (0.5% - 11% - paid by employee)
Compliance
Legal landscape (Employment Laws in Ireland)
Employers should abide by the following work laws in Ireland:
- Terms of Employment (Information) Acts 1994–2014: Employers should inform employees about the employment type, job description, remuneration, contract type, etc.
- Employment (Miscellaneous Provisions) Act 2018: This Irish labor law prohibits zero-hour contracts.
- General Data Protection Regulation (GDPR) 2018: Safeguards employee’s personal data.
- Payment of Wages Act 1991: This Irish employment law mandates that employees should have a play slip that will clearly display their total earnings before and after deductions.
- Minimum Notice and Terms of Employment Acts 1973–2005: This law enlists the amount of notice an employee is entitled to before terminating a contract.
- Organization of Working Time Act 1997: This law encompasses employment conditions like annual leave, public holidays, maximum working hours, etc.
Employee/ Contractor classification
It is crucial to determine whether an individual is an employee or an individual contractor, however, it may be difficult to distinguish between them.
Whether an individual is an employee or a contractor depends on whether they pay social security payments and other deductions under the PAYE system.
Fines/Penalties
- The Workplace Relations Act 2015 (Fixed Payment Notice) Regulations 2023 introduce a set of on-the-spot fines for non-compliance with key areas of Irish employment law.
- These fines, known as fixed payment notices, apply when employers fail to meet specific legal obligations.
Situation | Fine(€) |
---|---|
Failure to consult with employee representatives during collective redundancy | 2,000 |
Failure to provide terms of employment or provide false information within one month | 1,500 |
Failure to provide a written statement of wages and deductions | 1,500 |
Failure to provide a statement of average hourly rate on employee request | 1,500 |
Failure to provide a written statement on tips distribution or improper service charge treatment | 750 |
Failure to display a ‘tips and gratuities notice’ or ‘contract workers tips and gratuities notice’ | 500 |
IP protection
- IP allows businesses and enterprises to protect and control their property rights. Ireland has a strong legal framework that allows IP rights holders to be rewarded for their innovation and benefit from their achievements.
- The Intellectual Property Office of Ireland is the authority responsible for granting patents, registering industrial designs, and assigning trademarks.
Payroll in Ireland
Employers must know the local rules and regulations to set up a payroll system. Compliance is a major hurdle that costs companies time and money.
They can outsource tasks such as payroll management and payroll taxation. Working with an EOR company like Skuad for payroll outsourcing in Ireland will help you gain an advantage.
By handing over compliance and accounting matters, you can focus on growing your business.
How to pay employees in Ireland?
Paying an employee in Ireland includes the following steps:
- Collecting the personal details of the individual like the name, address, and RPNs.
- Calculating the employee’s gross pay and determining the net pay after social security and tax deductions.
- Paying the due amount.
- The employer then has to transfer the employee’s tax and USC contributions on the employee’s behalf.
Best ways to pay employees in Ireland
Irish employees are paid in Euro.
Employers can pay employees either weekly or monthly. It is mandatory to pay on the last day of every month.
You can pay employees using:
- Direct deposit.
- Bank transfers.
- SEPA - It’s a payment method that is used across the European Union.
- Using an EOR, like Skuad, to manage the Irish payroll.
Benefits & Compensation
There are a number of benefits that Irish employees are entitled to:
Employee benefits
- Ireland employees' rights are safeguarded by strict labor laws, which protect them against discrimination, ensure a minimum wage, and provide them with a safe working space.
- Employers and employees collaboratively pay an amount that is deposited as Pay Related Social Insurance.
- Employees are entitled to annual leaves and other leaves such as sick leaves, maternity leave, carer’s leave, and even leave if an employee is facing domestic violence.
- Employees attaining the age of 66 also receive a weekly pension that is counted on the basis of their contributions to social insurance.
Government Benefits
- Employees in Ireland are entitled to social security as encompassed under PSRI.
- Irish employees (66 and above), who have ever paid any social insurance contributions, are likely to receive a weekly payment on the basis of the contributions they have made.
- The Automatic Enrolment Retirement Savings Systems Bill 2022 also marks a historic era in the landscape of Irish pensions.
Insurance Benefits
- No law in Ireland mandates employers to provide healthcare benefits like life insurance, health insurance, etc. They, however, have to pay statutory sick pay.
Worker Rights
The employees hired through EOR Ireland enjoy several rights that safeguard their interests as employees. They are discussed below:
Working hours
- The average working hours of an employee per week should not exceed 48 hours.
Ireland’s minimum wage
- The minimum salary in Ireland of employees per hour since 1st January 2024 is €12.70.
Specific labor laws
According to the Irish norms, here’s a comprehensive list of the specific labor laws in Ireland:
- Maximum Working Hours: Employees cannot work more than 48 hours per week, averaged over a period of time. Rest breaks must also be provided during each 24-hour period.
- Banning of Zero-Hour Contracts: Zero-hour contracts are banned in most situations. Employees must receive a minimum payment if they are not provided with the hours of work they were scheduled for.
- Paid Annual Leave: Most employees are entitled to 4 weeks of paid annual leave per year, in addition to public holidays.
- Minimum Wage: The National Minimum Wage applies to all employees, with specific rates for different age categories.
- Rest Breaks and Public Holidays: Employees are entitled to daily rest periods, rest breaks during shifts, and paid leave on public holidays.
Notice period
The notice period that an employee has to serve depends on how long the individual has been engaged with the employer.
Duration for which an employee has been engaged | Notice period |
---|---|
13 weeks to 2 years | 1 week |
2 years to 5 years | 2 weeks |
5 years to 10 years | 4 weeks |
10 years to 15 years | 6 weeks |
More than 15 years | 8 weeks |
Severance pay
- After a contract in Ireland terminates, the employee receives the outstanding wages and payslips.
- This also includes reimbursement for earned leaves. Employers are, however, not required to pay any mandatory severance pay.
Working conditions
- Employers must ensure a secure and conducive work environment for their employees.
- The workplace must be free from risks, including discrimination, harassment, and inappropriate behavior that could undermine safety and comfort.
Anti-discrimination laws/acts
- The Employment Equality Acts 1998-2015 ensure that employees are not discriminated against and are given equal opportunities regarding skills, promotions, training, etc.
- There are also laws to ensure equal pay for men and women and equal pay for employees, regardless of the employment contract the individual is engaged in.
Health & Safety
- In Ireland, workplace health and safety is majorly governed by the Safety, Health and Welfare at Work Act 2005.
- This act ensures that both employees and employers follow health and safety requirements in the workplace. It mainly includes provisions for penalties for breaches of health and safety laws.
Remote & Hybrid Work
Flexible work arrangement
The remote working setup allows both employers and employees to enter into a flexible arrangement, allowing tasks to be accomplished while keeping the convenience of both parties in mind.
- The Organization of Working Time Act of 1977 mandates that employers note employees' working hours.
- Employees should get adequate rest and breaks. They are also entitled to annual leave and public holidays as applicable.
Technology requirements
- An employee should have the appropriate conditions, including a stable internet connection, to amplify the remote-readiness of the work.
- The employer should ensure safe working conditions for the employee. This includes safeguarding the personal data of employees, ensuring safe video conferencing, and so on.
Infrastructure requirements
- Employers should provide the gadgets and access to all the software that the employee might require.
- Employees, on their end, should ensure an ergonomic setup to ensure proper and efficient execution of the work assigned to them.
Salary
An Irish employee earns an average of €44,202 annually, or a gross salary of €3,683 monthly. An individual’s salary, however, depends on the skill, experience, expertise, education level, and so on.
Use our salary calculator to get an estimate of how much you should pay your employees based on the kind of employment agreement you are entering.
It can also help you compare job salaries, know about salary trends, and offer competitive salaries to your employees.
Leave Policy
Let’s have a look at Ireland’s leave policy:
Public Holidays
In the Republic of Ireland, there are nine government-designated days off throughout the year. While not all bank holidays qualify as public holidays, most businesses will honor Good Friday with recognition, like paid leave or shorter working hours.
Employers have a few options when it comes to compensating employees for working on public holidays: workers can take a day off on the actual holiday, receive an additional holiday day within four weeks, get an extra annual leave day, or accept an extra day’s wages.
Ireland’s public holidays for 2024 are listed below:
Date | Holiday |
---|---|
Sunday, January 1 | Lá Caille (New Year's Day) |
Friday, March 17 | Lá Fhéile Pádraig (Saint Patrick's Day) |
Friday, April 17 | Aoine an Chéasta (Good Friday) |
Monday, April 10 | Luan Cásca (Easter Monday) |
Monday, May 1 | Lá Bealtaine (May Day) |
Monday, June 5 | Saoire i mí an Mheithimh (June Holiday) |
Monday, August 7 | Saoire i mí Lúnasa (August Holiday) |
Monday, October 30 | Saoire i mí Dheireadh Fómhair (October Holiday) |
Monday, December 25 | Lá Nollag (Christmas Day) |
Tuesday, December 26 | Lá Fhéile Stiofáin (St. Stephen's Day) |
Sick Leave
- Irish employees can take three days’ paid leave for sickness. The employee must provide the employer with relevant details of the illness.
Maternity Leave
- According to the Ireland maternity leave policy, female employees are given 26 weeks of maternity leave, irrespective of their tenure.
- Employees qualifying for maternity benefits receive €245 per week.
Paternity Leave
- According to Ireland's paternal leave policy, new fathers are also eligible to receive five weeks of paternity leave within six months of welcoming a child (whether born or adopted) to the family.
Carer’s Leave
- Employees who have served for at least one year in an organization may be entitled to a minimum of 13 weeks and 104 weeks to care for someone in need.
Adoption Leave
- Adoptive parents may take 24 weeks of leave from the day the child is placed with them.
Parents’ Leave in Ireland
- According to Irish parental leave law, parents can apply for seven weeks of paid leave until their child turns two (or, if adopted, has spent two years in the family).
Background Checks in Ireland
An Employer of Record in Ireland has to perform the following checks to assess the credibility before it hires employees in Ireland:
- Confirming the identity by verifying the candidate’s original documents.
- Conducting a bankruptcy record search to assess a candidate's financial decision-making ability.
- Checking the educational background.
- Verifying a candidate’s employment history.
- Looking for any possible criminal record.
- Cross-verifying the candidate’s character, work ethic, etc., with the references mentioned in the candidate’s CV.
These steps are essential for employment background checks in Ireland. An individual must pass the checks to be eligible for easy Visa processing.
Types of Visas in Ireland
Visa category | Explanation | Duration |
---|---|---|
Short Stay Visa | This visa allows people to visit Ireland to study or for sightseeing for up to 90 days. However, this visa does not allow a person to work or to use public services. | 90 days |
Short Stay Business Visa | The short-stay tourist visa does not allow a person to do business or work in Ireland. With a short-stay business visa, a person can come for business or work and stay in Ireland for up to 90 days. | 90 days |
Employment Visa (Ireland Work Visa) | There is only one type of work visa in Ireland. People need to get permission from immigration before applying for this visa. After getting permission, one can apply for a long-stay employment visa to work in Ireland. It must be noted that one needs an employment letter before applying for immigration permission. Ireland work visa requirements: One needs to have a job offer in place. Permission is only given if the person is highly skilled or if Ireland has a skill shortage. Companies should also consider background checks. |
Depends on the type of employment and application. |
Single or Multi-Entry Visa | A single entry visa only allows a person to visit Ireland for one time between the dates of validity of their visa. A multi-entry visa, on the other hand, allows a person to have multiple short trips in Ireland while their visa is valid. |
Depends on the validity of the underlying visa |
Probation & Termination
The Unfair Dismissal Act does not come to the rescue of employees on probation until and unless they are removed from service for the following reasons:
- Avoiding payment of entitlements such as maternity leave or adoptive leave.
- Pregnancy-related dismissals.
- Trade Union activity or membership.
In the usual course, the Act will not apply to employees on probation. However, it can come into effect if the employment contract is not in writing or if the probation lasts for less than a year (this should be specified in the contract).
In Ireland, employees are usually on probation for 3 to 12 months. After assessing the employee’s performance, the employer decides whether or not to retain the person in full-time employment.
Termination of employment in Ireland
According to Irish law, an employer must have cause to terminate an employee. Moreover, the Redundancy Payments Act of 1967 to 2014 says that employees with more than two years of service must be paid redundancy payments. They have the right to two weeks of pay for each year of their service and an additional one week’s pay.
Notice of termination of an employee
Employees are entitled to be served a notice of their termination. The notice period depends on their years of service. Here are details of the required notice period:
Duration of Employment | Notice period |
---|---|
13 weeks to 2 years | 1 week |
2 years to 5 years | 2 weeks |
5 years to 10 years | 4 weeks |
10 years to 15 years | 6 weeks |
15 years or more | 8 weeks |
If the duration of employment is more than the duration specified in the legislation, the notice period must be given according to the terms of employment.
Employers can terminate employees without providing notice only in cases of gross misconduct, provided the conduct is so severe that it requires immediate termination.
In Ireland, the notice period during probation is one week. Employers can dismiss employees on probation as long as the probation criteria are met.
Offboarding
Employees’ idea of an organization’s culture depends on how they have been treated until the last minute. After the termination of the contract, the offboarding involves the following steps:
- Informing all relevant departments about the employee's departure.
- Conducting an exit interview to gather insights on the employee’s experience.
- Transferring responsibilities to a new employee and collecting company equipment and materials.
- Removing the departing employee’s access to all company systems and digital platforms.
- Processing final payments and completing necessary paperwork.
- Updating company records to reflect the employee's departure.
Cultural Considerations
Employees love the light-heartedness of Irish cultural values. Although all messages are kept clear, they are delivered with a touch of humor. Unlike many other European countries, Irish professionals maintain an informal atmosphere.
Alongside these, non-verbal cues are an important part of Ireland's cultural values. Maintaining eye contact signifies attentiveness, and flaunting a smile enhances the welcoming atmosphere.
Companies should try to get new employees acquainted with Irish norms and help them understand what is important to Irish culture so they don't feel left out.
Professional Employer Organization
A Professional Employer Organization (PEO) provides businesses with services such as consultancy, payroll, filing payroll taxes, handling health benefits, and employers’ liability. However, its services are not just limited to those functions. It exists to handle all those issues that burden businesses and hinder their growth.
A PEO is different from an EOR. EORs put employees on their payroll, whereas with PEOs, the employees are on the company's payroll. Likewise, EORs hold employment agreements with themselves. With PEOs, companies hold employment agreements. Both have their benefits and their use case. For example, if you want to employ people for a short term, it’s best to go for an EOR. For a long-term arrangement, a PEO is advisable.
Companies can take the benefit of a PEO service such as those provided by Skuad to grow and expand their business in Ireland. Learn more here.
Conclusion: What Gives Skuad’s Ireland Solutions an Edge?
Skuad is a platform to build, pay, and manage teams worldwide. Global recruitment in Ireland is made possible by Skuad’s services. If you are looking to hire exceptional talent from Ireland, Skuad will handle everything from hiring to compliance. It provides an efficient and effective service that aims to provide companies with the option of hiring talents from across the world with ease. Sign up for a demo now.
FAQs
1) What is an employer of record in Ireland?
An Employer of Record (EOR) in Ireland legally hires employees without setting up a local entity. An EOR, like Skuad, manages payroll, taxes, benefits, and compliance with Irish labor laws, ensuring legal and efficient hiring for foreign companies.
2) How long do employers keep records of past employees in Ireland?
In Ireland, employers are required to keep records of past employees for three years.
3) How much does an EOR cost in Ireland?
The cost of using an Employer of Record (EOR) in Ireland typically ranges from 10% to 20% of the employee's salary. Some providers offer flat fees or custom pricing based on your needs. For instance, Skuad starts at just $199 per employee. Click here to calculate the cost of employment in Ireland.
4) What is the difference between EOR and PEO?
An Employer of Record (EOR) assumes full legal responsibility for employees, including compliance with labor laws, payroll, and benefits administration. A Professional Employer Organization (PEO) involves co-employment, with the client company sharing responsibilities and liabilities.
5) What are the termination laws in Ireland?
As per termination laws in Ireland, the notice periods depend on the length of service, ranging from one week for short-term employees to eight weeks for those with more than 15 years of service.
6) What is the difference between employer of record and payroll?
The EOR Republic of Ireland is a third-party body that helps organizations hire, retain, and pay employees. It manages all the HR-related tasks associated with managing international employees. Payroll companies, on the other hand, rely on software solutions, and their expertise lies in payroll-centric tasks.
7) What are the benefits of an EOR in Ireland?
An Ireland EOR helps hire employees in Ireland from across the globe without the employer having to take the administrative burden.
8) How do I choose an employer of record in Ireland?
Choose an EOR Ireland based on the services it offers, such as tax compliance, payroll, legal support, etc., its experience in the domain, its scope for scalability, the technology it uses, its reputation in the market, and its pricing structure.
Table of Content
- Overview
- Ireland at a Glance
- Employment In Ireland
- Hiring In Ireland
- Onboarding and Agreements
- Work Permits
- Taxes in Ireland
- Compliance
- Payroll in Ireland
- Benefits & Compensation
- Worker Rights
- Remote & Hybrid Work
- Salary
- Leave Policy
- Background Checks in Ireland
- Probation & Termination
- Offboarding
- Cultural Considerations
- Professional Employer Organization
- Conclusion: What Gives Skuad’s Ireland Solutions an Edge?
- FAQs
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