Ireland’s labor market is resilient. Plus, with a recent drop in remote work opportunities across the country, now could be a good time for U.S. companies to hire employees in Ireland, especially in fast-growing sectors like tech.

Companies hiring in Ireland must be aware of Ireland’s labor laws and legal requirements. Cultural expectations are important, too (yes, Saint Patrick’s Day is an important public and religious holiday in Ireland, and employees will expect to have it off at full pay).

This guide will cover how to hire employees in Ireland, as well as how a workforce management platform can help organizations to source, hire, pay, and manage employees with lower risk and more reward.

How to hire employees in Ireland

American companies hiring in Ireland can take one of several routes towards building an Irish team:

1) Set up a legal entity in Ireland

A legal entity enables U.S. companies to hire employees in Ireland directly. Establishing a legal entity can be a lengthy (and expensive) process with lots of paperwork. So while it appears straightforward, this option isn’t the fastest or most flexible way to hire in Ireland.

2) Hire contractors in Ireland

Contractors and employees are classified differently in employment law, so you may be able to hire contractors in Ireland without a legal entity. That said, if you hire a contractor and then use them like an employee (with set work hours, for example), you are at risk of worker misclassification and may need to pay substantial fines.

3) Use a workforce management platform

A workforce management platform acts as the temporary work agency in Ireland while your company manages the day-to-day work of local hires. 

This streamlines the hiring process from onboarding and payroll to benefits and compliance, by offering local expertise and dedicated support.

Learn more about using a workforce management platform in Ireland.

Where to find employees in Ireland

There are several candidate sourcing options available in Ireland, depending on how hands-on you want to be:

Popular job boards in Ireland

Given Ireland’s English-speaking talent pool, U.S. companies should find no barriers to entry with Ireland’s online job boards. 

The most popular places to advertise jobs when hiring in Ireland include:

• JobsIreland.ie
• IrishJobs.ie
• Jobs.ie
• Jobbio
• Indeed Ireland
• RecruitIreland

Work with local recruitment agencies

Recruitment agencies can handle some of the legwork of hiring employees in Ireland. But you’ll need to fit recruitment fees into your hiring budget. Recruitment companies typically charge between 15% and 25% of a new hire’s first-year salary and up to 30% for senior or hard-to-fill positions.

Recruit with the support of a workforce management platform

If you’re already working with a workforce management platform’s temporary work agency to hire employees in Ireland, candidate sourcing may be an additional service offering. 

Unlike recruitment agencies, they will also support with employment contracts, onboarding, benefits, and payroll compliance. Think of them as a go-to partner throughout the employee lifecycle.

Onboarding employees in Ireland

A new hire’s first 90 days really set the tone for their total employee experience. A workforce management platform may assist with employee onboarding, making sure the workers have everything they need to hit the ground running. 

This can include:

• Sending welcome emails and welcome packs
• Issuing and configuring work devices
• Registering employees with Ireland’s Jobs and Pension Service and/or Revenue Online Service (ROS) 
• Registering each new hire in the company’s payroll and benefits systems

Hire in Ireland: Key employment laws and requirements

There are several key laws and regulations to follow when hiring in Ireland.

Employment contracts

Ireland’s Employment (Miscellaneous Provisions) Act 2018 stipulates that workers are entitled to the core terms of their employment, in writing, within 5 days of starting a job.

Contracts should include:

• The full name of the employer (the business name) and the employee
• The employer’s address
• Place of work (or where there is no set place, a statement defining what remote or hybrid working looks like)
• Start date of employment and expected duration of contract (i.e., fixed or open-term)
• The job title, seniority, and/or nature of the work
• The rate or method of calculating pay (i.e., daily, monthly, yearly) 
• Typical working hours
• Conditions of the probationary period (if applicable)

Details around other benefits (such as paid leave, training, pension scheme, etc.) and payroll cycles may be included in the employment contract or provided at a later date, as long as this information is shared within 1 month of the employee starting work. 

Employee benefits

Ireland’s minimum wage is €12.70/hour for employees aged 20+. Aside from pay, employees in Ireland will expect the following benefits:

• Public holidays as paid leave: Ireland observes 10 public holidays a year.
• A sick leave allowance: Employees are entitled to 5 days of paid sick leave each year.
• Maternity leave: The statutory requirement is 26 weeks of maternity leave at full pay from state benefits and a further 16 weeks unpaid.
• Pension contributions: Pension contributions must be paid as part of a shared contribution to Ireland’s social security/insurance fund (PRSI). 

Working hours and holidays

In addition to public holidays, Irish workers also receive statutory vacation leave. By law, this must amount to at least 4 weeks of paid time off. Public holidays are not included in vacation leave and must be offered in addition to statutory vacation allowances.

Learn more about the leave policy in Ireland.

Employment contracts can be for a maximum of 48 hours of work a week. Unlike other countries, Ireland has no legal standard for overtime: employees can be asked to work extra hours without extra pay. This should be clearly communicated and explained in the employment contract.

Income tax

Companies that hire employees in Ireland need to understand their tax responsibilities. Income tax in Ireland depends on an employee’s salary and marital status. It is the employer’s responsibility to withhold income tax payments and submit them to the Revenue as part of the monthly payroll.

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. 

Here are Ireland’s income tax rates:

Taxpayer type	Income taxed at 20%	Income taxed at 40%
Individual taxpayers	Up to EUR 44,000	Over EUR 44,000
Single parents	Up to EUR 48,000	Over EUR 48,000
Married couples/civil partnerships (1 income)	Up to EUR 53,000	Over EUR 53,000
Married couples/civil partnerships (2 incomes)	Up to EUR 88,000	Over EUR 88,000

Social security (PRSI)

Ireland’s Pay Related Social Insurance (PRSI) pays out on social welfare benefits and pensions. It is the employer’s responsibility to withhold PRSI contributions from the employee’s pay.

PRSI can get complicated. There are 11 different classes of PRSI, with private sector employees paying different rates than public servants and the self-employed. 

Universal social charge (USC)

USC is only paid by workers who earn more than EUR 13,000 per year. If a worker’s earnings exceed this figure, they will make contributions as follows:

• 0.5% of earnings up to EUR 12,012
• 2% of earnings of EUR 12,012.01 to EUR 27,382
• 3% of earnings of EUR 27,382.01 to EUR 70,044
• 8% of earnings of EUR 70,044.01 and over.

Termination and severance

Under Ireland’s employment laws, an employee can challenge a termination if they deem it to be an unfair dismissal. 

In Ireland, an employment contract may be terminated due to issues regarding:

• Capability: i.e., the employee’s inability to perform due to lateness or absence (non-medical or short-term and long-term illnesses).
• Competence: i.e., the employee’s inability to meet the expected standards.
• Conduct: i.e., if the employee commits any misconduct, including theft, violence, breaches of health and safety, etc.
• Qualifications: i.e, if the employee lacks the qualifications that are necessary to perform the role (this can be validated thoroughly in an employee background check) or fails to achieve certain qualifications required for the role.
• Redundancy: i.e., if the organization decides that the employee’s work is no longer required.
• Contravening the law: i.e., if it becomes clear that continuing the employment contract would mean breaking the law (as a result of an employee’s actions).

The statutory minimum notice periods for dismissal are:

Employee tenure	Minimum notice
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 in Ireland may offer “pay instead of notice,” and tax and other contributions may not need to be paid on income earned during this notice period.

In the event of redundancy, the same notice periods apply. Employers must provide the worker with a written explanation for why their role is being terminated. Statutory redundancy pay is owed to all employees who’ve been with the organization for at least 2 years. The statutory allowance is 2 weeks’ pay for every year of service plus 1 additional week’s pay.

Payoneer Workforce Management helps hire employees in Ireland

Ireland’s talent pool presents a good opportunity for U.S. and other overseas companies hiring in Ireland.

To hire quickly and move efficiently, partnering with a workforce management platform, like Payoneer Workforce Management, helps companies onboard independent contractors and full-time employees without the complexities of setting up a local legal entity. 

Our unified platform can assist you:

• Onboard local talent quickly and compliantly without a local entity
• Run global payroll securely in a few clicks
• Manage taxes, benefits, timesheets, and more.

From hiring in days to multi-currency payroll, Payoneer Workforce Management helps businesses hire, pay, and manage a global team. Speak to our expert team to get started today.

FAQs

1) What are the options for American companies hiring in Ireland?

Companies can choose one of three main options to hire employees in Ireland. 

• Establishing a local legal entity: This involves incorporating your business in Ireland so that you can directly hire workers as required. Incorporation takes time and money, though. 
• Hire contractors: American companies hiring in Ireland can employ independent contractors if they need support on short-term and/or project-based tasks. But misclassifying employees as contractors can come with significant penalties.
• Partner with a workforce management platform: To avoid setting up a legal entity, a business can partner with a workforce management platform’s temporary work agency in Ireland. It helps handle payroll, paperwork, compliance, and other necessary admin.

2) What is the 11 hours rule in Ireland?

Ireland’s employment laws stipulate that employees are entitled to a daily rest period of 11 consecutive hours for every 24 hours. For example, if an employee finishes work at 6 pm, then they cannot be asked to start work again until after 7 am the following day.

A typical working week in Ireland is 48 hours total.

3) Are foreigners allowed to work in Ireland?

Yes. Foreign and international citizens can legally work in Ireland. Workers from outside the European Economic Area, the UK, or Switzerland will need the proper work authorization and an appropriate employment permit. 

In these cases, an employer will “sponsor” the worker, paying for their work authorization and associated legal fees. This is an attractive proposition for talented workers in Ireland, and many will proactively seek out companies hiring in Ireland with visa sponsorship.