Employer of Record in Ireland

An Employer of Record (EOR) in Ireland legally employs workers on your behalf. This means you can hire talent in Ireland without setting up a local entity. An EOR handles all the legal and HR responsibilities that come with employment. This includes payroll, taxes, benefits, and compliance with Irish labor laws. If you are looking to hire in Ireland, an EOR provider like Rivermate can simplify the process for you.

How an Employer of Record (EOR) Works in Ireland

An EOR simplifies hiring in Ireland. Here is how it works:

1. You Find the Talent. You recruit and select the best candidate for your team.
2. The EOR Hires Your Candidate. The EOR legally employs the person in Ireland under their local Irish entity.
3. A Service Agreement is Signed. You and the EOR sign a service agreement. This outlines the terms of the partnership.
4. An Employment Contract is Issued. The EOR provides your new team member with a compliant employment contract. This contract meets all Irish labor law requirements.
5. The EOR Manages HR. The EOR takes care of all HR tasks. This includes running payroll, withholding taxes, and providing benefits.
6. Your Employee Works for You. Your new team member performs their daily tasks for your company, just like any other employee.

Why use an Employer of Record in Ireland

Using an EOR in Ireland makes international hiring simple and efficient. It removes the major hurdle of setting up a legal entity in a new country. This saves you time and money. An EOR ensures you comply with all local labor laws, reducing your risk.

Here are some key benefits:

• Enter the Market Faster. You can hire employees and start operations in Ireland in a matter of days, not months.
• Ensure Full Compliance. EORs are experts in Irish employment law. They manage all legal requirements, from contracts to terminations. This includes navigating social security contributions, known as Pay Related Social Insurance (PRSI), as detailed by Ireland's Citizens Information Board (https://www.citizensinformation.ie/en/social-welfare/irish-social-welfare-system/social-insurance-prsi/).
• Reduce Costs. You avoid the significant expenses tied to establishing a legal entity. This includes legal fees, registration costs, and administrative overhead.
• Offer Competitive Benefits. An EOR can provide your employees with attractive benefits packages. This helps you attract and retain top talent in the Irish market.
• Simplify Payroll and Taxes. The EOR handles all payroll processing and tax deductions. They ensure compliance with the Irish Revenue Commissioners (https://www.revenue.ie/en/employing-people/index.aspx), the authority for taxes in Ireland.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Ireland includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Ireland.

Hiring in Ireland offers a vibrant talent pool, especially in the service and tech industries. The workforce is highly educated, and many companies are embracing remote and hybrid work models. If you're looking to hire in Ireland, understanding the local employment laws is key to a smooth process. This guide will walk you through the essentials.

Employment contracts & must-have clauses

You must give new employees a written statement of their core employment terms within five days of starting. A more detailed written statement of all terms and conditions must be provided within one month of their start date. While there's no legal requirement for the employee to sign it, you must keep a copy.

Your employment contract should include:

• Full names of the employer and employee
• Employer's address
• Job title and a brief description of the work
• Start date
• Expected duration if it's a temporary or fixed-term contract
• Pay rate and how it's calculated
• The number of hours you expect the employee to work in a normal day and week
• Details of rest periods and breaks
• Annual leave and public holiday entitlements
• Notice periods for termination

Probation periods

In Ireland, a probation period can't be longer than six months. You can only extend it up to 12 months in exceptional situations, and it must be in the employee's best interest. For fixed-term contracts, the probation period must be in proportion to the contract's length.

During probation, employees have the same rights as regular employees regarding pay, leave, and safe working conditions. However, protection against unfair dismissal generally applies after one year of service.

Working hours & overtime

A standard full-time workweek in Ireland is typically 39 hours. The maximum average working week is 48 hours, calculated over a four-month period. This includes any overtime. Employees are also entitled to 11 consecutive hours of rest in every 24-hour period and one 24-hour rest period per week.

There is no legal requirement to pay employees extra for overtime. Overtime pay is determined by what you agree upon in the employment contract. For employees who work on a Sunday, you must provide additional compensation, which can be through extra pay, an allowance, or paid time off.

Public & regional holidays

Ireland has ten public holidays each year. For 2025, these are:

Full-time employees are entitled to a paid day off on a public holiday. If they have to work, they are entitled to an additional day's pay, an extra day of annual leave, or a paid day off within a month.

Hiring contractors in Ireland

When you hire independent contractors in Ireland, it's crucial to classify them correctly. Misclassifying an employee as a contractor can lead to significant penalties, including back taxes and fines. An independent contractor is self-employed, controls their own work, and is not entitled to employee benefits like paid leave.

An Employer of Record (EOR) can help you hire contractors in Ireland without the risk of misclassification. An EOR ensures that your contractors are classified correctly according to Irish law. This saves you from potential legal issues and allows you to focus on your business.

In Ireland, your payroll process is straightforward. You pay your employees and handle taxes through a system called Pay As You Earn (PAYE). This means you deduct income tax, Pay Related Social Insurance (PRSI), and the Universal Social Charge (USC) directly from your employees' wages. You'll report these deductions in real-time to the tax authority, known as the Revenue Commissioners.

Payroll cycles & wage structure

You can pay your employees on a schedule that works for your business, but it must be at regular intervals. The most common pay cycle is monthly, usually paid between the 25th and the last day of the month. However, weekly and fortnightly payments are also common, especially in sectors like retail and hospitality. You are required to provide a payslip with each payment.

The wage structure in Ireland is based on a national minimum wage, which varies by age.

Overtime & minimums

There is no legal requirement to pay employees extra for overtime work. Any overtime pay is typically negotiated and set out in the employment contract. Many employers choose to pay higher rates for overtime, such as time and a half or double time, especially for Sundays and public holidays. The maximum average working week is 48 hours, usually calculated over a four-month period.

As of January 1, 2025, the national minimum wage is €13.50 per hour for employees aged 20 and over.

Here are the minimum hourly rates by age:

• Aged 20 and over: €13.50
• Aged 19: €12.15
• Aged 18: €10.80
• Under 18: €9.45

Employer taxes and contributions

As an employer, your main contribution is to Pay Related Social Insurance (PRSI). This funds social welfare programs in Ireland.

Employee taxes and deductions

You will deduct three main items from your employees' pay.

In Ireland, you'll find a strong system of employee benefits and leave entitlements. The law provides a solid foundation of mandatory benefits. Many companies then build on this with additional perks to attract and retain talent. This approach shows a culture that values work life balance and employee wellbeing.

Statutory leave

By law, you must provide your employees in Ireland with certain types of leave.

• Annual leave: Employees are entitled to four weeks of paid annual leave per year.
• Public holidays: There are 10 public holidays each year.
• Maternity leave: Expecting mothers get 26 weeks of paid leave. They can also take an additional 16 weeks of unpaid leave.
• Paternity leave: New fathers or partners can take two weeks of leave in the first six months after birth or adoption.
• Parental leave: Parents can take time off for older children as well.
• Adoptive leave: An employee who adopts a child is entitled to 24 weeks of leave.
• Sick leave: Employees are entitled to five days of sick pay per year as of 2024. This is set to increase to seven days in 2024 and ten days in 2025.
• Carer's leave: Employees can take leave to care for someone with serious medical needs. The minimum leave is 13 weeks and the maximum is 104 weeks.
• Domestic violence leave: Employees are entitled to five days of domestic violence leave.

Public holidays & regional holidays

Ireland has 10 public holidays, which are also known as bank holidays. While Good Friday is not an official public holiday, some businesses close on this day.

Typical supplemental benefits

To stay competitive, many companies in Ireland offer more than the legal minimum.

How an EOR can help with setting up benefits

An Employer of Record (EOR) simplifies offering benefits in Ireland. Instead of navigating the complexities of local laws and providers yourself, an EOR handles it all.

An EOR can:

• Ensure you comply with all statutory requirements.
• Advise on competitive supplemental benefits.
• Manage the administration of all benefits.
• Onboard new employees and explain their benefits.

Using an EOR saves you time and reduces risk. You can be confident that you are offering a compliant and attractive benefits package to your employees in Ireland.

When an employee leaves your company in Ireland, you need to follow a clear process. This is called termination and offboarding. It ensures you treat your former employee fairly and stay on the right side of the law. The process involves things like giving enough notice, calculating final pay, and handling paperwork. A smooth offboarding protects your business and respects the departing employee.

Notice periods

When you end an employment contract, you must give the employee notice. The amount of notice depends on how long they have worked for you. The legal minimums are:

• 13 weeks to 2 years of service: 1 week's notice
• 2 to 5 years of service: 2 weeks' notice
• 5 to 10 years of service: 4 weeks' notice
• 10 to 15 years of service: 6 weeks' notice
• 15 or more years of service: 8 weeks' notice

You can also choose to pay the employee for the notice period instead of having them work. This is called payment in lieu of notice.

Severance pay

In Ireland, there is no general legal requirement to pay severance to an employee when their job ends. The main exception is in the case of redundancy.

If an employee is made redundant and has worked for you for at least two years, they are entitled to a statutory redundancy payment. This payment is calculated as:

• Two weeks of pay for each year of service
• An additional one week of pay

The weekly pay used for this calculation is capped at a certain amount. This statutory redundancy payment is tax-free.

You can choose to offer a more generous redundancy package. Also, if you have a history of paying more for redundancy, you may be required to continue this practice. Any payment above the statutory amount is called an ex-gratia payment and may be taxable.

How Rivermate handles compliant exits

At Rivermate, we make sure that every employee exit is handled correctly and complies with Irish law. We know that navigating termination procedures can be complex, so we manage the process for you.

We ensure that you follow fair procedures for every termination. This is crucial because, in Ireland, an employee with at least one year of service can claim unfair dismissal if the process isn't handled properly.

Our process includes:

• Clear documentation: We handle all the necessary paperwork, from warning letters to the final termination notice.
• Fair procedures: We guide you through the required steps, which may include investigations, meetings with the employee, and offering the right to appeal.
• Compliance with notice periods: We make sure you provide the correct statutory notice period based on the employee's length of service.
• Final pay calculation: We take care of calculating and processing the employee's final salary, including any unused holiday pay.

Getting the right paperwork to work in Ireland can seem complicated. It’s a two-part process: you usually need an employment permit first, then a visa to enter the country. Think of the permit as your right to work, and the visa as your ticket to get here. This applies if you are not a citizen of the European Economic Area (EEA) or Switzerland. Citizens from those countries can live and work in Ireland without a permit. For everyone else, let's break down what you need to know.

Employment visas & sponsorship realities

When you work with an Employer of Record (EOR), we handle the complex parts of employment. This includes payroll, taxes, and making sure you comply with local labor laws. For foreign hires, an EOR can often support the work permit application process.

Here’s what that looks like in practice:

• What an EOR can do: An EOR acts as your legal employer in Ireland. This means we can manage the administrative side of your employment, which is a key part of the permit and visa process. We ensure your employment contract and payroll meet Irish standards, which are necessary for any application.
• What an EOR can't do: An EOR cannot magically create a visa for you. The Irish government grants work permits based on specific needs in the job market. You still need a job offer from a company, and that job often needs to meet certain criteria.
• The direct employer role: For most permits, there needs to be a direct relationship between you and the company you'll be doing work for. The Irish authorities want to see a clear employment contract and a real job.

Practical Routes to Working in Ireland

The most common paths to getting a work permit are:

1. Critical Skills Employment Permit: This is for professionals in fields where Ireland has a skills shortage, like tech and healthcare. It's a popular route because it offers a clear path to residency.
2. General Employment Permit: This permit is for jobs that aren't on the critical skills list. Your employer will likely need to prove they couldn't find a suitable candidate in the EEA for the role. This is done through a Labour Market Needs Test.

The process generally follows these steps:

1. Secure a job offer: You must have a job offer from an employer in Ireland.
2. Employer starts the permit application: Your employer will typically apply for the permit on your behalf through an online system.
3. Apply for your visa: Once the employment permit is approved, you can apply for an entry visa to come to Ireland.

Business travel compliance

If you're coming to Ireland for a short business trip, you'll likely use a Short Stay 'C' visa. This allows you to stay for up to 90 days for specific business activities.

What you can do on a business visit:

• Attend meetings
• Negotiate contracts
• Sign agreements
• Engage in work for a period of 14 days or less

What you cannot do:

• Work for longer than 14 days
• Use public services like hospitals

It's important to be clear about the purpose of your visit to immigration officers when you arrive. Even with a visa, they have the final say on your entry.

Visa Waivers

Ireland has a Short Stay Visa Waiver Programme. If you have a valid UK short-stay visa and are a citizen of a participating country, you may be able to travel to Ireland without a separate Irish visa. You must have legally entered the UK on that visa before traveling to Ireland.