Using an employer of record in Ireland

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. As an easier option, many companies choose to partner with an Employer of Record (EOR) in Ireland.

An Employer of Record in Ireland can hire, onboard, and pay employees on your behalf, providing a faster and easier way to build an international team.

Find out more about Payoneer WFM’s Employer of Record services in Ireland, or keep reading to learn about EOR services in Ireland.

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. Hire employees through an employer of record: Employer of record services in the Republic of Ireland will already have a legal entity in the country. Not only can they hire on your behalf, they’ll also help you stay compliant with local labor and tax laws, run payroll for your international team, and perform other administrative tasks.

Partnering with an employer of record in Ireland

In Ireland, EORs like Payoneer WFM help businesses hire and onboard talent quickly. They handle employment contracts, work permits and authorization, payroll, and tax deductions while acting as the legal employer for your Irish team. 

EORs also manage benefits and expenses according to local standards, saving you from navigating Ireland’s employment laws yourself. 

Compared to setting up a local entity or hiring contractors, using an EOR 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 Pension 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 13.50 ($15.80) per hour.

Payroll deductions and other contributions

Deduction	Description	Contribution/rate
Social security (PRSI)	Both employers and employees pay pay-related social insurance (PRSI) contributions on all salaries exceeding EUR 352 per week. This covers pension contributions too.	Employers pay 8.9% on incomes up to EUR 395 per week and 11.15% on salaries over this amount. Employees contribute 4.1%.
Universal Social Charge (USC)	This fund provides support to employees and their families through unemployment assistance and other essential needs.	On a sliding scale from 0.5% on annual incomes up to EUR 12,012 through to 8% on incomes over EUR 70,0044.01.
Income tax	Income tax is calculated based on tax bands. The salary limits differ based on marital/family status, where single parents benefit from a higher top range of the 20% taxable rate.	Tax rates range from 20% to 40%.

An Employer of Record in Ireland will have experience with handling Ireland’s tax laws and can determine what’s required for your organization. 

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 (averaging 48 hours), breaks, paid leave, and public holidays.

Employees may be asked to work beyond the 48-hour workweek, and 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

The Irish government reassesses Ireland’s minimum wage every year. Your Employer of Record in Ireland usually helps you be informed about annual changes. 

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

Age	Minimum Wage (EUR)	Approx. USD Equivalent
20 and over	EUR 13.50	$15.80
19 years old	EUR 12.15	$14.23
18 years old	EUR 10.80	$12.65
Under 18	EUR 9.45	$11.06

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.
• Parents of children under 2 years of age can take a further 9 weeks of “Parents’ leave” at full pay.

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

Your EOR in Ireland can help you create the ideal leave policy for your Irish team.

Work permit in Ireland

Most people from outside the European Economic Area (EEA) require an employment permit to work in Ireland. Employers or employees can submit permit applications to the Department of Enterprise, Tourism, and Employment. 

Speak to your Employer of Record in Ireland about which work permit is most applicable for your hires, because there are several options depending on the job role, expected salary, and employee classification. 

Most Irish work permits come with fees based on the permit’s validity period:

• Up to 6 months: EUR 750 ($880) 
• Up to 36 months: EUR 1,500 ($1760)

The application process usually takes 2 to 3 months.

Background check in Ireland

Employee background checks are a legal requirement for certain roles in Ireland. Background checks are 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’s 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.

A background check will typically look into the candidate’s:

• Employment history: Verifying a candidate’s work history, skill set, and aptitude with previous employers can help avoid potential issues further down the line.
• Work authorization: An Irish work visa is required for most people who aren’t European Economic Area (EEA) citizens.
• Criminal record: Employers can obtain a candidate’s criminal record from the Garda (Ireland’s police force). This is only applicable and available for roles that work with children or vulnerable people.

Background checks into credit history and other financial information are not common in Ireland, unless the role involves handling finances at a senior level. 

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

Employers can also make employees redundant in Ireland. If an employee has been with your organization for 2 years or more, they are entitled to statutory redundancy pay, equivalent to 2 weeks of tax-free pay for every year of service, plus 1 additional week, up to a maximum of EUR 600.

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. 

For many U.S.-based companies, partnering with an EOR in Ireland is a quicker and easier alternative for hiring employees in Ireland without establishing a local entity.

PEO in Ireland 

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. This means you still need to establish a registered legal entity in Ireland if you want to hire employees there.

Working with an EOR, on the other hand, provides a straightforward way to hire in Ireland without creating a local entity. The EOR becomes the legal employer for your team in Ireland and helps you stay compliant with local employment laws.

Payoneer WFM offers one of the best EOR services in Ireland

Payoneer WFM offers employer of record services in Ireland and 160+ countries. Our expert team partners with growing businesses to support compliant hiring and team management.

When you hire through Payoneer WFM, we handle onboarding, employment contracts, taxes, payroll, benefits, and work permits, all while helping you navigate and comply with Ireland’s local labor laws.

FAQs about the Ireland employer of record 

1) What is an employer of record in Ireland?

An Employer of Record (EOR) in Ireland 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.

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 an Employer of Record, such as Payoneer WFM.

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

Yes. Your Employer of Record will help calculate relevant taxes, deduct these from employees’ pay (where applicable), and file the appropriate amounts each month.