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Global HR Compliance in Ireland

Ireland is a mature, business-friendly economy with deep integration into global markets, strong IP protection, and a highly skilled workforce. Its legal framework is governed by a combination of domestic law and EU regulations, making employer obligations highly structured but enforceable. Companies hiring in Ireland, whether local or foreign nationals, must comply with labour legislation, tax obligations, and social contribution schemes.

This guide is designed for experienced international operators navigating employment compliance in Ireland. It covers employment contracts, benefits, taxation, dismissal processes, and employer obligations in detail.

Employment Models in Ireland

Ireland recognises multiple employment arrangements:

  • Permanent full-time and part-time employment
  • Fixed-term contracts for project or seasonal work
  • Casual/variable hours contracts, but zero-hour contracts are prohibited
  • Agency-supplied workers, who are protected under the Protection of Employees (Temporary Agency Work) Act.

Independent contractor arrangements must be handled with caution due to clear criteria for employment status and increasing Revenue scrutiny on worker misclassification.

Employment Contracts

Irish law mandates that a written statement of employment terms must be provided to employees within five days of starting work, with a full contract issued within two months. The contract must specify:

  • Employer and employee identity and contact details
  • Job title and description
  • Start date
  • Expected duration (if fixed term)
  • Location of work
  • Remuneration, pay frequency, and working hours
  • Terms related to probation, notice, and dispute resolution
  • Sick pay and pension entitlements (if any)
  • Disciplinary and grievance processes

Contracts must reflect statutory minimums and cannot waive legal entitlements even by mutual agreement. Deviations from standard protections (e.g., in probation terms) must be contractually justified and compliant.

Working Hours and Rest Periods

Irish law limits average working hours to 48 per week, calculated over a reference period of four months. Some sectors (e.g., transport, healthcare) use longer averaging windows under specific regulations. The legal minimum rest provisions include:

  • 11 consecutive hours rest in every 24-hour period
  • 24 consecutive hours rest each week (or two days over a 14-day period)
  • 15-minute break after 4.5 hours worked; 30-minute break after 6 hours

Sunday work must be compensated by additional pay, time off, or another benefit, as agreed.

Overtime

Overtime pay is not required by statute. Entitlement depends on contractual terms or sector-wide collective agreements. In practice, overtime rates of 1.5x or 2x normal pay are common for weekend or public holiday work. Employers must track actual hours and ensure breaks and maximum limits are respected.

Probation

Most employment contracts include a probationary period of up to six months, extendable to 11 months. During this time, dismissal processes are more flexible, but fair procedures must still be followed, especially for underperformance or conduct issues. The Unfair Dismissals Acts do not apply until 12 months of continuous service, though wrongful dismissal claims can still arise.

Annual Leave

Employees are entitled to the greater of:

  • 4 working weeks (if 1,365+ hours worked in the leave year),
  • 1/3 of a week per calendar month (if working 117+ hours), or
  • 8% of hours worked (up to a maximum of 4 weeks)

Holiday accrual begins from day one. Leave must be taken within six months of the end of the leave year unless carried over by agreement. Public holidays (nine per year) are additional.

Sick Leave

There is no universal statutory sick pay scheme unless specified in the contract. From 2023, the statutory Sick Leave Act requires employers to pay for three days of sick leave per year (rising gradually to 10 days). Medical certification is required. Some employers offer more generous terms under internal policies.

Parental Leave

Maternity leave includes 26 weeks paid leave and 16 weeks unpaid additional leave. Paternity leave covers two weeks within six months of birth. Parents may also claim parental leave (26 weeks per child up to age 12), parent’s leave (seven weeks), and adoptive leave, depending on eligibility and tenure. Pay for statutory leave is funded by the Department of Social Protection, not the employer.

Termination and Severance

Dismissals must be for a legally valid reason: capability, conduct, redundancy, or statutory restriction. The Unfair Dismissals Acts apply after 12 months of service (exceptions apply for certain dismissals such as pregnancy-related or union membership). Employers must:

  • Give written notice (statutory minimum: 1 to 8 weeks, depending on tenure)
  • Conduct a fair process (investigation, opportunity to respond)
  • Avoid discrimination or retaliation
  • Keep written records to support termination decisions

Redundancy entitles the employee to two weeks’ pay per year of service (plus one bonus week), subject to eligibility. No severance is legally required outside redundancy unless contractually agreed or offered via a mutual separation agreement.

Employee Benefits and Contributions

Mandatory contributions include:

  • PRSI (social insurance)
  • Universal Social Charge (USC)
  • PAYE (income tax, withheld by employer)

Voluntary employer benefits may include:

  • Occupational pensions
  • Private health insurance
  • Meal and travel allowances
  • Remote work allowances
  • Employee assistance programmes

Tax treatment depends on benefit type. Employers must account for benefit-in-kind taxation where applicable.

Immigration and Work Permits

Non-EEA nationals require an employment permit. Categories include:

  • General Employment Permits (most roles)
  • Critical Skills Permits (in-demand fields such as IT, engineering, healthcare)
  • Intra-Company Transfer Permits

Employers must sponsor the application and provide evidence of role, salary, and compliance with the Labour Market Needs Test. Once approved, workers apply for a visa and residence permission. Non-compliance can result in fines or restrictions.

Risk and Compliance Considerations

Employers must maintain compliance with:

  • Employment law and sector regulations
  • PAYE/PRSI and Revenue reporting
  • Working Time and Health & Safety rules
  • Immigration permissions (when applicable)

Failure to comply may result in litigation, workplace inspections, reputational damage, and financial penalties. Worker misclassification is a particular risk in remote or hybrid setups.

Acumen International: Global Employment Services in Ireland

Service Scope

We act as the legal employer for your staff in Ireland, eliminating the need to establish a local entity.

  • Enable fully compliant hiring of local or foreign personnel
  • Cover both permanent and fixed-term engagements
  • Offer agile market entry or project-based staffing

Employment Administration

  • Draft and issue compliant employment contracts
  • Handle payroll in EUR with full PAYE, PRSI, and USC compliance
  • Manage pension enrolment and statutory benefit administration
  • Maintain accurate records and submit reports to Irish authorities

Immigration Support

  • Sponsor and coordinate employment permits
  • Liaise with GNIB and Department of Justice
  • Handle renewals and terminations of permit-based workers

Risk and Compliance

  • Ensure adherence to Irish employment law and EU directives
  • Protect clients from misclassification or unfair dismissal disputes
  • Maintain readiness for Revenue audits and labour inspections

Use Cases

  • Testing Ireland as a new market
  • Retaining remote Irish employees post-restructuring
  • Scaling without establishing a subsidiary
  • Employing all nationals compliantly.
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