Ireland
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
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Labor Law
Laws that regulate Labor Relationship
The laws that regulate labor relationships in Ireland include:
• The Employment Equality Acts 1998-2015
• The Organisation of Working Time Act 1997
• The Protection of Employees (Part-Time Work) Act 2001
• The Protection of Employees (Fixed-Term Work) Act 2003
• The Safety, Health and Welfare at Work Act 2005
• The Unfair Dismissals Acts 1977-2015
• The National Minimum Wage Act 2000
• The Terms of Employment (Information) Acts 1994-2014.
Onboarding guide
Requirements for a labor contract
• A contract of employment can be verbal or written, or a combination of both.
• Every employee has a contract of employment.
• The details of a contract of employment are referred to as its terms.
• All contracts of employment should contain basic terms and obligations particularly basic protections for employees.
Pre-hire Medical exam
Medical examinations are not required to onboard a new hire in Ireland, but some employers may choose to conduct them for certain roles or industries.
Types of contracts
• Full time or permanent that are signed for an indefinite amount of time.
• Fixed term that have a limited validity, they are valid for four years if you renew continuously.
• Part time.
• Temporary contracts.
Probation Period
Lasts for one year or less and is specified in the contract.
Are offer letters mandatory in the country?
Offer letters are not mandatory for labor contracts in Ireland, but it is common practice to provide a written statement of terms and conditions of employment within 5 days of starting work.
Are digital signatures in labor contracts valid?
Digital signatures are valid in labor contracts in Ireland.
Mandatory onboarding documents
Mandatory documents to hire an employee in Ireland include a P45 form, which shows the employee’s tax details from their previous job, and a P60 form, which shows the employee’s total pay and tax deductions for the year.
Statutory benefits
Annual Bonus
Doesn’t Apply
Additional bonus
Additional payment for people who receive a long-term social assistance payment, in 2021 they will receive 100% of their normal weekly long-term social assistance payment, a minimum payment of 20 euros.
Leaves (medical, maternity, paternity, etc.)
• Bereavement leave: three days of paid leave in the event of the death of an immediate family member, a contractual agreement rather than a legal right to leave.
• Maternity leave: 42 weeks of leave, 26 paid weeks and 16 unpaid weeks.
• Death of a parent: Fathers may be entitled to maternity leave or adoptive leave if the mother dies. The number of weeks you can take as leave depends on how many weeks after the birth the mother dies. The leave starts within 7 days of the mother’s death.
• Paternal leave: 2 weeks of paid paternity leave, it can be taken during the first 6 months of the baby’s life.
• Adoptive leave: 24 weeks leave off work to one parent of the adopting couple or a parent who is adopting alone.
• Sick leave and sick pay: your entitlement to paid sick leave from employment will depend on your contract of employment but, they have no legal right to be paid while you are on sick leave from work.
Annual Leave (days per year)
Employees in Ireland are entitled to 4 weeks of paid annual leave per year. After working for the same employer for 1 year, this increases to 4 weeks plus one day, and after 8 years it increases to 5 weeks.
How do vacation days expire?
Vacation days in Ireland do not expire, and employees must be allowed to take their full entitlement of annual leave each year.
Official Holidays
• January 01, New Year’s Day
• March 17, Saint Patrick’s Day
• April 17, Easter Monday
• May 1, May Day
• June 5, June Bank Holiday
• August 7, August Bank Holiday
• December 25 Christmas Day
• December 26 Saint Stephen’s Day
Working on holidays and Sundays
Rules regarding working Sundays and public holidays in Ireland vary by industry and employer. In general, employees who work on a public holiday are entitled to either an additional day’s pay or a paid day off in lieu. There are no specific rules regarding working on Sundays.
Number of Working hours
The statutory working hours per week in Ireland are 39 hours. There is no legal limit on the number of hours an employee can work per day.
Overtime
The overtime policy in Ireland is that an employee must not work more than an average of 48 hours per week, including overtime. Employers must pay overtime rates of at least 1.5 times the employee’s normal rate of pay for any hours worked over 39 hours per week.
Social Security (what does it cover)
There is contributory social security (social security) and non-contributory (social assistance), three main types of payments:
• Social security payments
• Payments with media verification
• Universal payments
Social Security in Ireland covers a range of benefits and services, including pensions, disability payments, and unemployment benefits.
Payroll
Salary payment currency
Euro (EUR)
Can salary be paid in a different currency other than the local currency?
Yes, it is possible for salaries to be paid in a currency other than the local currency. However, employers must ensure that the employee’s pay is not lower than the minimum wage in Euros.
Payment frequency
The typical payment frequency for employees is monthly, although some employers may choose to pay on a weekly basis.
VAT percentage
The Value-Added Tax (VAT) rate in Ireland is currently 23%.
Income Tax
Irish income tax is imposed on the worldwide income of an individual who is resident and domiciled in Ireland. The ranges varying from 20% to 40% and depends on the filing status (single or widow, couple with one or two income). For more information see https://taxsummaries.pwc.com/ireland/individual/taxes-on-personal-income
Tax Payer Identification Number
In Ireland, the Taxpayer Identification Number is called the Personal Public Service Number (PPSN). It is a unique reference number that is used to access social welfare benefits and public services.
Offboarding
Voluntary resignation
Employees who have had continuous employment for at least 13 weeks are required to notify their employer one week in advance of termination of employment. If a greater amount of notice is specified in the employee’s employment contract, then this notice must be given.
Contract termination
A labor contract can be terminated in the following cases:
• Mutual agreement between the employer and the employee
• Expiration of a fixed-term contract
• Dismissal for cause (justified dismissal)
• Redundancy or layoff due to economic reasons
Justified Dismissal
If notice periods shorter than the minimum stipulated in the law are given, it will have no effect. Employer is obligated to pay the employee for that period, likewise it is important to note that the laws do not prevent an employer or employee from waiving their right to notice or accepting payments in lieu of notice.
• The causes for justified dismissal include:
• Gross misconduct or negligence
• Breach of contract
• Poor performance after repeated warnings
• Refusal to carry out lawful instructions
• Theft or fraud
• Physical violence or harassment
Unjustified Dismissal
When an employee believes that his or her employer has violated a provision of the laws, he or she may file a complaint with the Workplace Relations Commission for resolution.
If an employee is unfairly dismissed, they may be entitled to compensation. The amount of compensation varies depending on the employee’s length of service and the circumstances of the dismissal. The maximum compensation is 104 weeks’ pay.
Employers must pay a statutory severance payment, calculated as two week’s pay for every year of service, and one further week’s pay.
Minimum Notice Period
Employers must give advance notice to employees as follows:
• Less than thirteen weeks: No notice required.
• Thirteen weeks to two years: one week.
• Two to five years: two weeks
• Five to ten years : four weeks
• Ten to fifteen years: six weeks
• Over fifteen years: eight weeks
Immigration
Visa process
Non-EU/EEA/Swiss nationals require a valid employment permit to work in Ireland. The employer must apply for the permit on behalf of the employee. The employee must also apply for a visa or entry permission to enter Ireland.
Visa documents
The mandatory documents to obtain a work visa include:
• Valid passport
• Employment permit
• Evidence of qualifications or skills
• Proof of financial support
• Medical insurance
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