Looking for an employer of record in Ireland? Here’s what you need to know

Any company looking to hire in Ireland must follow Irish employment laws and labor practices. For a company based outside of Ireland, that can be tough. 

Companies usually choose to partner with an Employer of Record (EOR) to streamline the process. However, the EOR model may not be permitted or recognized in Ireland, so you may use a Temporary Work Agency. It can help onboard and pay employees without setting up a local entity, providing a quicker way to build and manage an international team.

Find out more about Payoneer Workforce Management’s services in Ireland, or keep reading to learn what hiring in Ireland involves.

How to hire employees in Ireland

Organizations have three main options for hiring teams in Ireland:

1. Setting up a local entity: This involves establishing a legal entity in Ireland, through which you can then make your hires. However, establishing an entity takes time and money and isn’t always practical for agile or scaling companies that want to move fast.
2. Hiring independent contractors: International companies can hire contractors in Ireland without a local legal entity. Proceed with caution when hiring contractors, though. Misclassifying an employee as a contractor can result in significant penalties.
3. Working with a Temporary Work Agency: This is a streamlined approach to engage local talent without a local entity, run payroll for the local team, and assist with administrative tasks with compliance support as per local labor laws.

Partnering with a Temporary Work Agency in Ireland

Typically, EOR helps businesses onboard talent quickly.  However, the EOR model may not be permitted or recognized in Ireland, so you may use a Temporary Work Agency.

They offer support with drafting employment contracts, payroll, and tax deductions while acting as the legal employer for the Irish team. 

They also guide with navigating benefits and expenses according to local standards.

Compared to setting up a local entity or hiring contractors, using a Temporary Work Agency in Ireland offers a faster, more flexible, and cost-effective way to build and support your team.

How to onboard employees in Ireland

A key part of the onboarding process in Ireland is acquiring a new Revenue Payroll Notification (RPN) number for each employee, so you can enrol them into your payroll and benefits system. 

If your hire hasn’t worked in Ireland before, they’ll need to register with Revenue, the government agency responsible for taxation, as well as the Jobs and Pensions service. 

Other onboarding activities may include:

• Introducing them to their team and colleagues
• Providing work equipment and setting up work accounts
• Sharing any relevant documentation and guides to help them get started

Pay employees in Ireland

Here’s what you need to know about managing payroll and paying employees in Ireland.

Payroll overview

• Ireland’s fiscal year runs from January 1st to December 31st.
• Employees are paid weekly or monthly.
• The national minimum wage is EUR 12.70 per hour for employees above the age of 20.

Payroll deductions and other contributions

• Social security:  Ireland’s social security system is statutory and consists of Social Security PRSI.

Employment laws in Ireland

To comply with local laws, employers must abide by the following legislation in Ireland:

• Terms of Employment (Information) Act 1994–2014: This outlines an employee’s right to receive written terms of employment.
• National Minimum Wage Act 2000: As above, Ireland’s minimum wage varies by age. 
• Payment of Wages Act 1991: Here you’ll find the regulations for how wages are paid, plus lawful and unlawful deductions.
• Employment Equality Act 1998–2015: Irish labor law prohibits discrimination based on an employee’s gender, marital and family status, sexual orientation, religion, age, disability, race, or ethnic origin. 
• Unfair Dismissals Act 1977–2015: This act protects employees from being unfairly dismissed without valid cause or due process.
• Organisation of Working Time Act 1997: This act governs maximum working hours (standard is 37.5 – 40 hours per week; law caps at 48 hours), breaks, paid leave, and public holidays.

Ireland’s labor laws do not have a statutory policy on overtime pay. 

Most employers will offer higher rates for additional hours worked, though this is defined and agreed upon in the employment contract.

Contracts can also include probationary periods of up to 6 months. On certain occasions, this can be extended by a further 6 months, if required.

Minimum wage in Ireland

Here are the current minimum wages in Ireland based on age:

Age	Minimum Wage (EUR)
20 and over	EUR 12.70
19 years old	EUR 11.43
18 years old	EUR 10.16
Under 18	EUR 8.89

The Irish government reassesses Ireland’s minimum wage every year.

Employment contracts in Ireland

The Employment (Miscellaneous Provisions) Act 2018 dictates that employers must send employees a clear, written contract within the first 5 days of their employment. 

In Ireland, an employment contract should include:

• Start date of employment
• Description of job role, including title, grade, and nature of the work
• Place of work, or a definition of hybrid, remote, or flexible working
• Whether the contract is for a fixed or open term
• Pay expectations, including core salary, how pay is calculated, available bonuses, etc.
• Definition of the employee’s working hours and working weeks
• The probationary period and process

Additional terms may also be shared within the first month of employment, including:

• Pay intervals (weekly, fortnightly, monthly)
• Paid time off, public holiday entitlement, sick pay
• Pension scheme and the other employee benefits offered
• Termination practices, including periods of notice

Leave policy in Ireland

Here are key details about the leave policy in Ireland:

• Ireland observes 10 public holidays per year, and most full-time employees are automatically entitled to paid time off on these days. 
• Employees may take 5 days of sick leave per year, paid by the employer at 70% of the employee’s salary up to EUR 110 per day.
• Employees have a statutory entitlement to 4 weeks of paid time off. 
• New mothers can take up to 26 weeks of maternity leave at full pay and a further 16 weeks unpaid. Paternity leave is up to 2 weeks at full pay from the state.
• Employees can take 26 weeks of unpaid parental leave, which must be taken within the first 12 years of the child’s life (or 16 years if the child has special needs).
• Parents are entitled to 9 weeks of Parents’ Leave within the first 2 years of the child’s life. This leave is supported by a state payment, and employers are not required to pay during this period.

It’s important to note that these are minimum requirements for leave, and many employers offer more generous leave allowances to stay competitive. 

Background check in Ireland

Employee background checks may be a legal requirement for certain roles in Ireland. Background checks may be required for roles in the following sectors:

• Healthcare
• Working with children or vulnerable individuals
• Financial management, including investing, accounting, and treasury management

For other roles, it may be up to the employer’s discretion.

To comply with local law, a background check must follow the requirements of the General Data Protection Regulation (GDPR) and the Data Protection Act 2018. 

Under the Irish Employment Equality Act, employers cannot use information gathered during a background check for discriminatory purposes. You’ll also need to get written consent from the candidate before a check begins.

Employment termination in Ireland

Employers can terminate an employee’s contract in the event of:

• Incapability and incompetence: Employers can terminate an employee who cannot deliver the role requirements, even after several documented warnings and attempts to support their performance.
• Improper conduct: This includes minor and gross misconduct. In the case of gross misconduct, an employee can be terminated without notice.
• Misrepresentation: An employee can be terminated if they misrepresented their qualifications or otherwise lied during the recruitment process, to the detriment of their suitability for the role. 
• Criminal activity: Employers have the right to terminate an employee if keeping them employed would mean breaking the law.

Notice periods vary based on the employee’s length of service:

Length of service	Minimum notice period
13 weeks to 2 years	1 week
2 to 5 years	2 weeks
5 to 10 years	4 weeks
10 to 15 years	6 weeks
Over 15 years	8 weeks

Company registration in Ireland

Registering a company in Ireland is a complex process, but it can make sense if you’re looking to establish a strong, long-term presence in the country.

To register a business in Ireland, you’ll need to:

• Choose your company name and structure.
• Apply for permission from the Irish Immigration Service to register a company if you are not a European Union (EU), European Economic Area (EEA), or Swiss national.
• Register with the Companies Registration Office (CRO).
• Obtain a company tax number from Revenue.
• Apply for relevant business permits or licenses, depending on your industry.

You can learn more about registering a company in Ireland on the CRO and Business Regulation websites. 

PEO in Ireland 

Typically, a PEO (Professional Employer Organization) and an EOR both help manage HR and payroll responsibilities when expanding your team internationally. However, there are a few key differences.

While PEOs are useful for outsourcing HR tasks, they don’t act as the legal employer for your team in Ireland, unlike EORs. This means you still need to establish a registered legal entity in Ireland if you want to hire employees there.

However, the EOR model may not be permitted or recognized in Ireland, so you may use a Temporary Work Agency instead.

It can help streamline the way to hire in Ireland without creating a local entity.

Try Payoneer Workforce Management

Payoneer Workforce Management’s services in Ireland help businesses with compliant support when onboarding local talent.

When you onboard through Payoneer Workforce Management, we may assist with employment contracts, taxes, payroll, and benefits, while helping you navigate and comply with Ireland’s local labor laws.

Book a demo today to learn more.

FAQs 

1) What is an employer of record in Ireland?

Typically, an Employer of Record (EOR) is a third-party organization that acts as the legal employer on behalf of international businesses and manages onboarding, payroll, taxes, benefits administration, and compliance without requiring a local entity. However, the EOR model may not be permitted or recognized in Ireland, so you may use a Temporary Work Agency instead for support with onboarding and paying Irish talent.

2) Can a U.S. company employ someone in Ireland?

Yes. A U.S. company can hire in Ireland by establishing a local legal entity, hiring exclusively contractors (rather than full-time employees), or partnering with a Temporary Work Agency.

3) Does an EOR help with tax filings in Ireland?

The EOR model may not be permitted or recognized in Ireland, so you may use a Temporary Work Agency, which may help calculate relevant taxes, deduct these from employees’ pay (where applicable), and file the appropriate amounts each month. However, this depends on the service provider.