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Hiring Employees in Ireland: A Comprehensive Guide

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Written by Asma Makni
Updated this week

Hiring Employees in Ireland: A Comprehensive Guide

Table of Contents

  1. Introduction

  2. Key Considerations for Employing in Ireland

  3. Benefits

  4. Employment Contracts

  5. Onboarding

  6. Leaves

  7. Payroll & Taxes

  8. Termination Process

  9. Invoice Schedule

  10. Get Started with Omnipresent


1. Introduction

Hiring employees in Ireland involves compliance with local labor laws, robust employee protections, and specific requirements around taxes and benefits. Omnipresent’s Employer of Record (EOR) service streamlines the process and ensures compliance.


2. Key Considerations for Employing in Ireland

  • Currency: Euro (€)

  • Language: English

  • Employer Costs: Moderate (~11.05% of salary)

  • Termination Complexity: Moderate

  • Onboarding Timeline: Approximately 15 calendar days

  • Payroll Frequency: Monthly


3. Benefits

Types of Benefits Offered

  • Mandatory Benefits: Public healthcare access, pension contributions, maternity & paternity benefits, illness and disability insurance.

  • Supplementary Benefits: Private healthcare, life insurance, income protection, gym memberships.

Healthcare

  • Ireland operates a public healthcare system with optional private health insurance coverage.

  • Employers often offer private medical insurance as a supplementary benefit.

Retirement

  • State pension is provided through Pay-Related Social Insurance (PRSI) contributions.

  • Employers must offer access to a pension scheme; auto-enrollment is expected to be introduced in 2024.


4. Employment Contracts

Contract Types

  • Indefinite-term contracts

  • Fixed-term contracts

  • Part-time contracts

Requirements

  • Written employment contracts are mandatory.

  • Language: English

  • Signature Requirements: Simple electronic or wet signature

  • Backdating: Not permitted under Omnipresent’s policy

Probation Period

  • Standard probation period: Up to 6 months, extendable to 12 months with justification.

  • Notice periods still apply during probation.

Contract Customisation

  • Optional clauses include unlimited PTO, enhanced sick pay, or extended parental leave.

  • Some elements (e.g. minimum notice, statutory entitlements) cannot be altered.


5. Onboarding

Timeline

The onboarding process in Ireland typically takes 15 calendar days, including:

  1. Platform Setup

  2. Right-to-Work Check

  3. Employment Contract Processing

  4. Benefits & Payroll Enrollment

Registration & Approvals

  • Employers must register employees with the Revenue Commissioners and Department of Social Protection (DSP).

Immigration & Visas

  • Omnipresent does not sponsor visas in Ireland.

  • Employees must already hold valid work authorization.

Right-to-Work Verification

  • Employers must verify employee eligibility before employment starts.

Employee Transfers from Another EOR

  • Previous service may be recognized in the new contract.


6. Leaves

Leave Entitlements

  • Annual Leave: Minimum 20 days per year (pro rata for part-time employees).

  • Additional leave may be granted by employer or agreement.

Parental Leave

  • Maternity Leave: 26 weeks paid (+16 weeks unpaid).

  • Paternity Leave: 2 weeks paid.

  • Parents Leave: 7 weeks (paid by the state).

Sick Leave

  • Statutory Sick Pay (SSP): 5 days in 2023, increasing annually to 10 days by 2026.

  • Employers must pay 70% of wages (capped at €110 per day).

Public Holidays

  • Ireland has 10 public holidays, including:

    • New Year’s Day, St. Patrick’s Day, Easter Monday, May Day, Christmas Day, St. Stephen’s Day


7. Payroll & Taxes

Payroll Cycle

  • Frequency: Monthly

  • Cut-off Date: 6th of each month

  • Payment Date: Last working day of the month

Compensation

  • Minimum wage (2024): €12.70/hour

  • Bonuses and commissions: Allowed but must be outlined in the contract

Standard Work Schedule

  • 39–40 hours per week, Monday to Friday

Employer Costs

  • Estimated 11.05% of gross salary. Use the OmniCalculator for a detailed breakdown.


8. Termination Process

Notice Period

  • Based on length of service:

    • <13 weeks: No notice

    • 13 weeks–2 years: 1 week

    • 2–5 years: 2 weeks

    • 5–10 years: 4 weeks

    • 10–15 years: 6 weeks

    • 15+ years: 8 weeks

Termination Grounds

  • Must be fair and reasonable, supported by procedure and documentation.

  • Examples: redundancy, misconduct, underperformance.

Severance Pay

  • No statutory requirement unless redundancy applies (then statutory redundancy applies).


9. Invoice Schedule

Initial Fees

  • Setup Fees: Due upon signing Terms

  • Deposit: Payable when the local employment contract is ready for signature

  • First Salary Prepayment: Invoiced on the first day of employment

Ongoing Monthly Payments

  • Labour costs invoiced monthly in arrears after payroll processing

  • Each invoice includes:

    • Monthly service fee

    • Deposit insurance (if applicable)

    • FX fee (if applicable)


10. Get Started with Omnipresent

We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey toward hassle-free global employment.

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