Hire and pay employees in Ireland

Employer of Record (EOR) vs. entity

To start, you need to decide if you’d like to set up your own legal entity or hire your Irish employees through an EOR.

• Irish EOR. An EOR is an external service provider that acts as an employer on behalf of the company, eliminating the need to establish your own entity. With an EOR, you can hire full-time Irish employees and they’ll handle all the legal requirements for complying with Irish laws for payroll, contracts, and benefits. EOR services encompass a range of tasks including calculating and withholding taxes, onboarding and managing employees, and payroll administration.
• Legal entity in Ireland. Establishing a legal entity from the ground up usually requires registration with local authorities, appointing an EEA Director, and seeking guidance from local experts to ensure compliance with tax and labor regulations.

Deciding between an EOR and setting up your own entity will depend on your company’s resources, size, and how you plan to scale. Here are the advantages and disadvantages:

After choosing an EOR, you can start the onboarding process by collecting your employee’s information (including name, date of birth, date of hire, contact, and bank information).

To thoroughly understand the steps of hiring through an EOR in Ireland, and learn how Rippling can help you hire and onboard Irish employees in 90 seconds, see our guide.

Classifying Ireland workers: employees vs. contractors

An essential aspect in the early stages of hiring is understanding how to correctly classify workers, so as not to rack up fines and penalties. 

Ireland has different definitions for “employees” and “independent contractors.” Here’s a primer on how Irish labour law distinguishes between contractors and employees:

Want help keeping compliant with Irish labor and employment laws? You can better understand worker classification with our Ireland misclassification guide.

Work permits for Ireland employees

Before proceeding with the hiring process, you must ensure your new employee is allowed to work in Ireland. Hiring employees without proper work authorization in Ireland is illegal, and both you and your new team member may be subject to penalties, which include fines and serious prison time (up to 10 years for employers).

There are two main work permits in Ireland:

• Critical Skills Employment Permits. For employees whose skills are in short supply in Ireland. You can find a Critical Skills Occupations List with the Department of Enterprise, Trade, and Employment to determine whether their job falls into this category.
• General Employment Permits. Open to anyone applying for a job that isn’t on the Ineligible Occupations List and pays at least €30,000 per year.

For more information, like details on how to apply, see our guide to work permits in Ireland.

New hire onboarding checklist

After you’ve verified that your employee is legally allowed to work in Ireland, you’re ready to continue with onboarding. This is a great opportunity to lay the groundwork for a strong working relationship.

Tip: the onboarding experience goes beyond the employee’s first day—make sure you’re thinking beyond payroll and benefits. Keep these things in mind:

Pre day 1

• Complete a background check. 
• Send offer letter (more on that below).
• Prepare for tax withholdings. 
• Enroll them in benefits.
• Add them to payroll. 
• Order and configure their devices. 
• Schedule their orientation.

On day 1

• Make sure their workspace is ready. 
• Send an email to welcome them. 
• Give them an agenda. 
• Schedule a meeting with their onboarding guide. 
• Give a tour of the office. 

During their first 90 days

• Schedule training. 
• Assign their work and set goals. 
• Schedule recurring check-ins. 
• Seek feedback on how to improve the experience.

Want the complete onboarding checklist for Ireland? Check out our guide to new hire onboarding in Ireland.

What to include in an offer letter in Ireland

Offer letters (also known as employment agreements) are essential in hiring. Here are the basics of what to include in an offer letter:

• Position, job description, and job duties
• Start date and hours of work
• Probationary period
• Compensation and benefits
• Salary
• Pensions
• Benefits
• Vacation policy
• Payment frequency
• Termination policy
• Confidentiality and non-disclosure agreements
• Contact information
• Parallel employment conditions

From probation period to vacation time, get a full checklist with our guide to sending a legally compliant offer letter.

NDAs and confidentiality agreements in Ireland

Non-disclosure agreements (NDAs) are commonly included in employment contracts to ensure confidentiality. These agreements should clearly state the full names of all parties involved, provide a comprehensive description of the confidential information that must not be disclosed, outline specific circumstances under which the NDA may become void, and establish provisions for upholding confidentiality even after an employee's termination. The NDA should also specify the remedies that are available to the parties in the event of a breach of the NDA. In Ireland, a breach of an NDA can result in damages, injunctive relief, and even criminal prosecution.

In Ireland, an NDA can protect:

• Original ideas
• Trade secrets
• Customer information
• Business plans

Learn more about the different types of NDAs and their essential components in our guide to NDAs in Ireland.

Running background checks on Irish employees

It’s natural to feel urgent about filling a position quickly, but don’t overlook the importance of a background check during onboarding. Some professions don’t require background checks in Ireland, but the following do:

• Roles in which an individual makes strategic choices involving large sums of money
• Roles that work with children or safeguard people
• Anyone working with money (e.g. financial advisors, accountants)
• Jobs in healthcare
• Roles that come into contact with physically harmful substances
• Roles in food manufacturing

If you want to learn more about background checks, including what’s illegal, see our guide to background checks in Ireland.

Paying employees in Ireland

After deciding between an EOR or your own entity, you need to pick a payroll solution. There are two kinds of international payroll solutions: global payroll processors and global payroll aggregators. Read more about them in our guide.

After selecting a payroll solution:

• Verify that your employees are correctly classified.
• Gather their details, like full name, date of birth, contact information, and bank details.
• Enter the payment amount in EUR, unless you have written consent from the employee to pay them in a different currency.
• Ensure compliance with statutory obligations when calculating deductions in payroll.
• Process payroll.

Read our step-by-step guide to running payroll for employees in Ireland.

Mandatory employee benefits in Ireland

Employment law in Ireland provides employees with a comprehensive range of rights and protections in the workplace, including entitlement to various statutory benefits. This intricate legal framework comprises multiple Acts and Orders that continue to be updated and revised. 

Mandatory benefits include:

• Pension plans/retirement contributions. Employers are not legally required to provide a pension plan but must offer access to at least one Standard PRSA; employers may contribute to PRSAs but are not obligated to.
• Workers’ compensation insurance. Companies must have workers' compensation insurance to cover lost wages and medical expenses in case of work-related injuries or illnesses.
• Paid sick leave. Under the new Statutory Sick Pay (SSP) scheme, employees are entitled to three paid sick days per year, with increasing entitlement in subsequent years.
• Parental leave. Employers must grant seven weeks of leave to employees who give birth or adopt—this includes maternity and paternity leave.
• Paid annual leave. All employees are entitled to a statutory minimum of 20 days of paid annual leave per year, excluding public or bank holidays.
• Bank holidays. There are 10 paid bank holidays in Ireland, including a new one added in 2023.

The specific benefits that you offer will depend on your company's budget and culture. However, it is important to offer a competitive benefits package in order to attract and retain top talent in Ireland. To learn how to go above and beyond when offering benefits (like private health insurance) to your Irish employees, read our full guide on meeting statutory requirements.

Managing remote employees’ computers and apps

Employees need to be set up with all the apps, tools, and integrations used by your company. With Rippling, you can:

• Swiftly set up and secure employees’ accounts, ensuring employees have the access and permissions they need. 
• Create a single place to set up, manage, and disable all employee apps—like Google Workspace and Slack.

In our guide, you can learn more about setting up and managing remote employee devices.

Protecting company IP in Ireland

It is essential to safeguard your intellectual property (IP) rights, preventing others from exploiting your ideas, inventions, trademarks, and other creative works for their own economic benefit. 

The Irish government has established its own IP regulations, which are further governed by the laws of the European Union. Consequently, navigating the protection of your IP requires engaging with multiple agencies and authorities.

In Ireland, you can register patents, trademarks, and industrial designs with the Intellectual Property Office. Copyright protection is automatically granted upon creation, typically lasting for 70 years after the creator's death. However, there are exceptions for certain works:

• Database rights are valid for 15 years from the date of completion.
• Sound recordings created before November 1, 2013, are protected for 50 from their creation or public availability. Recordings made after this date are protected for 70 years. 
• Broadcasts are protected for 50 years from the first transmission.
• TV shows or cable programs are protected for 50 years from their public debut.

In our beginner’s guide to IP ownership and rights in Ireland, you can learn more about intellectual property protections.

Complying with Ireland labor laws

Irish employment law is a maze of Acts, Codes, and other regulations to protect employee rights. Learn about the most important regulations to keep in mind when hiring in Ireland, from minimum wage to maternity leave, and be aware of the following: 

• At-will employment is not recognized, and terminating an employee without providing a valid reason and appropriate notice period after their first 12 months of employment can be deemed unfair dismissal, potentially leading to legal consequences.
• Workers have the constitutional right to join or leave a trade union of their choice, and employment laws safeguard them against dismissal or discrimination based on their trade union activities; additionally, the Irish Congress of Trade Unions ensures the confidentiality of member information and handles various aspects of trade union activities, including memberships, campaigns, and collective bargaining.
• Caregivers who are responsible for the full-time care of a dependent person are entitled to Carer's Leave, a temporary and unpaid leave program that allows them to take a minimum of 13 weeks and up to a maximum of 104 weeks of leave, during which their employer must keep their position open for their return.

Terminating employees in Ireland

In Ireland, employees are safeguarded against unjustifiable or abrupt terminations through a stringent labour code, and failure to comply with minimum notice periods and payment obligations, or provide valid justifications for dismissal can result in legal consequences such as wrongful dismissal claims and penalties imposed by Irish courts.

Below are the statutory minimum notice periods for Irish employees:

If you fail to adhere to the statutory minimum notice periods or pay requirements, or you are unable to prove your decision was justified, you could be subject to a wrongful dismissal claim and penalties in Irish courts. To learn more about handling terminations in Ireland, from just case to severance pay, see our full guide to terminations in Ireland.

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.