Employer of record in Ireland | Employment Law

Employment Law in Ireland

Contracts

Irish law provides strong protections for employees under fixed-term, part-time, and agency contracts, regulated by the Protection of Employees (Fixed-Term Work) Act 2003 and other statutory instruments. Employers are expected to provide written terms of employment within five days of the employee’s first day. Fixed-term employees are entitled to the same benefits as permanent employees, and after four years of continuous service, they may be entitled to a contract of indefinite duration. Ireland also has apprenticeship contracts, mainly for training, which are governed by national apprenticeship programs and relevant legislation.

Termination and notice periods

In Ireland, statutory laws generally require written notice for termination, with periods ranging from one to eight weeks based on the employee’s length of service. In most cases, terminated employees are entitled to a warning and a fair hearing. Just cause for a dismissal includes serious misconduct, breach of contract, incapacity, incompetence, lack of qualifications, and redundancy.

Employees with at least two years of service may be entitled to redundancy payments, calculated based on their length of service and weekly earnings. As your employer of record (EOR) in Ireland, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with labor laws and minimize legal risks.

Probation periods

In Ireland, probation periods are indirectly addressed in local law, typically lasting up to six months in the private sector and up to twelve months in government roles, with extensions permitted only on an exceptional basis.

Working hours and overtime

The standard working week in Ireland typically consists of 39 to 40 hours, spread across five days, with a legal maximum of 48 hours per week averaged over a four-month reference period. Employees are entitled to 11 consecutive hours of rest in every 24-hour period and one full day off each week.

Any work beyond the standard working time is considered overtime. While Irish law does not mandate a specific rate for overtime pay, it is common for employers to offer premium rates, such as time and a half or double time, based on the employee’s contract or collective agreement. Some industries have sector-specific agreements that define minimum overtime pay obligations.

Taxes

In Ireland, withholding tax is known as Pay As You Earn (PAYE) and is deducted by employers before paying salaries to employees. Employers must deduct PAYE from employee salaries based on applicable income tax rates and submit it to the Revenue Commissioners.

Employer payroll contributions

Ireland’s social security system, Pay Related Social Insurance (PRSI), requires employer contributions that are dependent on the total number of employees, and these contributions cover pensions, medical care, disability insurance, and parental leave. In addition, workers’ compensation is financed by contributions from state governments, employers, and employees.