Ireland's economy is primarily powered by accounting, technology services, and banking. It is one of the countries where employers can witness heavy government spending on Information technology and digital services.

With the perfect combination of public  spending on IT infrastructure and private investments, Ireland has developed a noteworthy talent pool. Employers building globally distributed teams can benefit from hiring in Ireland. However compliance with local laws and regulations is one of the biggest challenges when hiring foreign workers. 

An Employer of Record (EOR) can be a great solution to this problem. An EOR acts as a legal employer for the purpose of payroll, tax, and other HR-related responsibilities, allowing companies to hire workers in foreign countries without having to set up a legal entity.

As a member of the European Union, Ireland’s workforce is protected by a wide range of employment rights. Ireland labor laws are informed by the Irish constitution, the law of equity, Common law and European Union labor laws. 

For instance, employees in Ireland are entitled to both maternity and paternity leave. Only recently, Ireland amended its laws for employees to a statutory minimum of three paid leaves. In contrast to the labor laws in the US where there are statutory minimums mandated by the federal government for paid annual leave and sick leaves.

An EOR in Ireland can also give you the flexibility you need to hire workers quickly and efficiently. EORs also offer in-market experts to help you navigate the complexities of local employment laws and regulations. At Gloroots’ we offer round-the-clock customer support to help you manage your employee’s employment lifecycle as failure to comply with local laws can result in significant penalties and legal issues.

The cost of an EOR service in Ireland depends on several factors: the number of employees you need to hire, the length of the engagement, and the level of support you require.

EORs charge a monthly fee per employee- a few hundred to a few thousand dollars per month. Employers should also be aware that EORs may charge a fixed fee or may charge a certain percentage of the employee’s salary. 

Gloroots charges a fixed fee per employee for EOR services in Ireland. Gloroots’ EOR solution is more cost-effective when considering the time and resources required to set up a legal entity in a foreign country.

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Key Metrics For Foreign Employer 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Ireland.

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Source: The Global Talent Competitiveness Index 2023

Proper worker classification is crucial to avoid the risks associated with employee misclassification. Employing a PEO/EOR in Ireland ensures accurate classification, precise payroll processing, and compliance with labor laws. Our seasoned professionals handle employment agreements and provide comprehensive benefits, empowering your business to focus on core operations. Trust us to navigate the complexities and protect your workforce with expertise and precision.

Ireland treats contractors, sole proprietors, self-employed individuals, and full-time workers differently, with significant risks associated with misclassification.

Employment Contract

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In Ireland, the written statement outlining the terms of employment should include:

• Identification of both parties
• Date of commencement (and employment duration for temporary contracts)
• Workplace details
• Job title and description
• Salary and payment details
• Applying pension scheme
• Working hours and overtime regulations
• Total number of holidays
• Regulations on sick leave and sick pay
• Notice periods for employment termination
• Reference to collective agreements

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This might sound overwhelming, but it doesn't have to be. Gloroots can eliminate these barriers for you. With Gloroots' Employer of Record offering, hiring and managing employees globally is a piece of cake.

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Get an overview of what you need to know when hiring in Ireland. Contact us.

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Working hours

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The maximum working week in Ireland is 39 hours for full-time employees. Employers have the responsibility to ensure that employees receive adequate rest. According to the Organization of Working Time Act 1997, the following rules apply:

•  The average working week cannot exceed 48 hours over a four-month period.
•  Employees are entitled to 24 consecutive hours of rest within a 7-day period, usually following one of the 11-hour rest periods.
•  Alternatively, employers can provide two 24-hour rest periods in a week if the previous week did not include any 24-hour rest periods.
• Unless specified in the employment contract, the 24-hour rest period should include a Sunday.

Overtime

There is no legal requirement for employers to provide overtime pay in Ireland. The payment of overtime is determined by the terms outlined in the employment contract or collective agreements.

In practice, many employers choose to compensate employees at higher rates for overtime work as specified in their employment contracts.

Certain industries may have specific regulations known as employment regulation orders and registered employment agreements, which establish higher rates of pay for overtime hours compared to regular working hours.

Minimum Wage:

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Starting from 1 January 2023, the minimum wage in Ireland is set at 11.30 EUR per hour. The minimum wage rates vary based on age, with different rates applicable to different age groups:

•  Employees aged 20 and above: 11.30 EUR per hour
•  Employees aged 19: 10.17 EUR per hour
• Employees aged 18: 9.04 EUR per hour
•  Employees under the age of 18: 7.91 EUR per hour

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Maternity Leave and Paternity Leave

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Female employees in Ireland are entitled to 26 weeks (156 days) of maternity leave, with the option to take an additional 16 weeks of unpaid leave immediately after. 

It is mandatory for mothers to take a minimum of two weeks of leave before the expected birth and at least four weeks after. 

The payment for maternity leave is dependent on the worker's contribution to social insurance (PRSI), and employers are not obliged to provide payment.

To be eligible for PRSI payment, the following conditions must be met:

• At least 39 weeks of PRSI paid in the 12 months preceding the start of maternity leave.
• At least 39 weeks of PRSI paid since the commencement of employment, along with at least 39 weeks of PRSI paid or credited in the relevant tax year or the subsequent tax year.
• At least 26 weeks of PRSI paid in the relevant tax year and at least 26 weeks of PRSI paid in the tax year immediately preceding the relevant tax year.

The standard weekly rate for maternity benefits is 262.00 EUR.

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Annual leave

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In Ireland, the minimum annual leave entitlement is 20 days, equivalent to four weeks. However, employers and employees can mutually agree to additional days off.

There are nine public holidays observed in the country. If an employee is unable to take a day off on a public holiday, they have the following options:

• A replacement day off, which must be granted and taken within one month after the public holiday.
• An extra day of annual leave.
•  Compensation in the form of an additional day's pay.

Starting from 2023, a new public holiday has been introduced in Ireland. The first Monday of February is now designated as a public holiday to commemorate St Brigid's Day.

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Sick Leave:

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Starting from January 1st, 2023, a new law in Ireland guarantees workers the right to receive 3 days of sick pay per year, beginning from the first day of illness, provided they present a medical certificate by the 4th day of sickness. 

Here are the key points:

• Sick days can be taken consecutively or on non-consecutive days.
• Employers are required to pay sick pay at a rate of 70% of the employee's normal pay, up to a maximum of €110 per day.
• Workers must be employed for at least 13 weeks before they can claim statutory sick pay.
• Companies have the option to offer more generous sick pay policies.

This new entitlement is part of a phased approach to sick pay legislation over a 4-year period:

•   2023: 3 days sick pay entitlement
•   2024: 5 days sick pay entitlement
•   2025: 7 days sick pay entitlement
•   2026: 10 days sick pay entitlement

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INCOME TAX

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Other Taxes and Social Security contribution

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Employer Payroll Contributions

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(Reduced to 8.80% where earnings are below the threshold of 441 EUR)

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Employee Payroll Contributions in Ireland

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Termination Process

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Employers have the right to terminate a fixed-term contract based on specific grounds such as business needs, personal reasons, or worker misconduct. In such cases, notice must be given to the employee, accompanied by a written explanation for the termination. If the reason for termination is misconduct, the employee should be provided with a warning and given an opportunity to explain their actions.

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When employment comes to an end, employers are required to settle any outstanding payments owed to the employee and provide them with a payslip detailing the final salary and deductions.

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With the implementation of real-time information, Revenue Payroll Notifications (RFNs) are now available in real-time for new employees. This eliminates the need for issuing P45 and P46 forms in Ireland.

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Notice Period

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The length of the notice period in Ireland is determined by the duration of the employment. Both the employee and the employer are required to give notice based on the following guidelines:

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Alternatively, the employer may choose to make a payment in lieu of notice instead of requiring the employee to work during the notice period.

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Severance Pay

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Severance pay in Ireland is provided to employees who have completed a minimum of 2 years of service. The standard rate is 2 weeks' pay for each year of service, with an additional week's pay. However, the maximum weekly payment is capped at EUR 600.

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Probation Periods

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Typically, the probationary period in Ireland ranges from 3 to 11 months, with a maximum duration of 12 months.

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When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR, and similar data protection. If it is painstaking to set up infrastructure and kick-start your hiring, monitoring the ever-changing compliance landscape is another uphill task. 

Gloroots helps you minimise all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. They do this by helping you generate employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for you and your employees.

Contact our experts today to kickstart your global hiring campaign.

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Ireland must have a local legal organisation and use local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Ireland demands compliance with employment laws.

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With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.