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Ireland is home to a skilled and well-educated workforce, and companies may benefit from hiring locally to tap into this talent pool.
If you are considering hiring employees in Ireland, it’s important to be aware of the country’s labour laws. Some of the key areas to consider include minimum wage rates, working hours, annual leave entitlements, and the process for terminating employment.
Irish law requires that employment contracts include written details of the job responsibilities, compensation, and duration of employment. Employers should ensure that they review and understand these contracts before signing them.
Ireland is an excellent location for finding remote employees due to its skilled workforce, English language proficiency, favourable business environment, convenient time zone, and access to technology.
With a strong emphasis on STEM education, Ireland boasts a large pool of talent with the necessary technical skills for remote work. English is the primary language spoken in Ireland, making communication with remote employees easy for English-speaking companies. Ireland’s time zone is also convenient for businesses in Europe or the US that need to collaborate with their remote teams during regular business hours.
The country’s low corporate tax rate and government incentives make it an attractive location for foreign companies.
Finally, Ireland’s status as a hub for technology companies means that remote employees in the country are likely to have access to the latest technology and tools needed to perform their jobs effectively.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Ireland. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Irish employee with Native Teams.
Employers in Ireland must follow certain legal requirements to align with local labour laws and regulations.
Employment law in the Republic of Ireland is governed by common law, statutory provisions, and fundamental rights set out in the Irish Constitution.
While employers and employees have considerable freedom to agree on the terms of employment, there is no strict requirement to issue a formal employment contract. However, under the Terms of Employment (Information) Acts 1994 to 2012, employers must provide employees with a statement outlining the main terms and conditions of their employment within two months of starting work.
Irish employment law generally provides consistent protections across different categories of employees. In particular:
In practice, most employers provide a detailed employment contract and an employee handbook. The handbook typically covers additional company policies and procedures, including grievance and disciplinary procedures, as well as IT and social media usage policies.
The two most commonly used types of employment contracts in Ireland are permanent contracts and fixed-term contracts.
Permanent (full-time) contracts provide for continuous, full-time employment with no predetermined end date. They typically set out the main terms and conditions of employment, including salary, working hours, annual leave entitlements, and additional benefits. Permanent employment generally provides greater job security and employment entitlements than other contractual arrangements.
Fixed-term contracts are agreed for a predetermined period, such as six months or one year. They are commonly used to cover temporary staffing needs, seasonal work, or specific projects. Fixed-term employees are entitled to the same fundamental employment rights as permanent employees. However, their employment ends automatically when the agreed term expires unless the contract is renewed or converted into permanent employment.
An employment contract is a legal agreement between an employer and an employee that sets out the terms and conditions of employment.
Under Irish legislation, an employment agreement should include:
Under the Terms of Employment (Information) Acts 1994 to 2001, employers must provide employees with a statement outlining specific terms and conditions of employment within two months of starting work. The statement must be signed by the employer.
If an employer fails to provide the required statement, the employee may lodge a claim with the Rights Commissioner service. The Rights Commissioner may award compensation of up to four weeks’ remuneration and require the employer to provide the employee with the statement of terms.
Download a free employment contract for Ireland through Native Teams.
Employment contracts in Ireland do not have to be in writing. Although legislation significantly influences the employment relationship, the legal relationship between an employer and employee is fundamentally based on contract law.
However, under the Terms of Employment (Information) Act 1994, employers are required to provide employees with a written statement of certain terms and conditions of employment.
This requirement does not apply to employees who:
In practice, written employment contracts remain the most commonly used form for formalising the employment relationship.
The maximum working time in Ireland is 48 hours per week on average. An employee may work more than 48 hours in a particular week, provided their average working time does not exceed the statutory limit.
When calculating the 48-hour average, periods of the following types of leave are excluded:
Overtime
There is no statutory entitlement to overtime pay in Ireland, and legislation does not prescribe specific overtime rates. However, many employers choose to compensate employees at higher rates for additional hours worked.
The employment contract should clarify:
Certain sectors may have specific arrangements requiring overtime to be paid at a higher rate than standard working hours. These may be governed by Employment Regulation Orders and Registered Employment Agreements.
Night work in Ireland refers to work carried out between midnight and 7:00 AM.
A night worker is generally an employee who works for at least three hours between midnight and 7:00 AM, with at least half of their annual working hours falling within this period.
Night workers must not work more than an average of eight hours within a 24-hour period.
Where night work involves specific hazards or significant physical or mental strain, employees must not work more than eight hours in any 24-hour period. Employers are responsible for identifying any hazards or strains associated with the work, assessing the potential risks, and taking appropriate measures to reduce them.
The Organisation of Working Time Act (OWTA) sets out employees’ statutory entitlements to rest breaks in Ireland. Breaks are not counted as working time and do not have to be paid unless the employee’s contract provides otherwise.
Employees are entitled to:
The length of an employee’s working day therefore determines the minimum rest breaks they are entitled to receive.
Most employees in Ireland are entitled to a minimum of four weeks of paid annual leave each year.
Annual leave is calculated according to the leave year, which generally runs from 1 April to 31 March, although some employers use the calendar year instead.
There are three main methods for calculating annual leave. Employees can use whichever method provides the greatest entitlement:
Pay rates in Ireland are generally agreed between the employer and employee. However, under the National Minimum Wage Act 2000, most employees are entitled to receive at least the applicable minimum wage.
Where hourly pay rates are set through an Employment Regulation Order (ERO), employers must still ensure that employees receive no less than the statutory minimum wage.
These requirements are intended to protect employees from underpayment and ensure they receive fair compensation for their work.
To calculate the salary and taxes in Ireland, click here.
From 1 January 2024, employees in Ireland are entitled to five days of Statutory Sick Pay (SSP) per year, increased from three days previously.
Employees cannot receive Illness Benefit for days on which they receive SSP. If an employee’s first period of illness in 2024 lasts fewer than five days and they qualify for SSP, they do not need to apply for Illness Benefit. Where the illness lasts longer than five days, Illness Benefit begins from day six.
If an employee has already used all five days of SSP and becomes ill again within the same year, Illness Benefit is payable from day four of the illness, following the standard three waiting days.
To qualify for Illness Benefit, an employee must:
There is generally no Illness Benefit payment for the first three days of illness, known as waiting days. Sundays are not counted as waiting days. Waiting days do not apply where the employee received certain other social welfare payments within three days before the illness began.
Employees in Ireland can take up to 26 weeks of parental leave for each eligible child, generally before the child reaches the age of 12.
To qualify for parental leave, an employee must:
Generally, employees must have worked for their employer for at least one year to qualify.
Parental leave is separate from parents’ leave and other statutory entitlements such as maternity, adoptive, and paternity leave. The legislation establishes the minimum parental leave entitlement, although an employment contract may provide more extensive rights.
Female employees in Ireland are entitled to 26 weeks of maternity leave, commonly referred to as ordinary maternity leave.
Employees may also be entitled to two weeks of paternity leave following the birth or adoption of a child. Paternity leave can be taken at any point within the first 26 weeks following the birth or adoption, regardless of whether the employee works full-time, part-time, or casually. Eligibility is not affected by the employee’s length of service or weekly working hours.
Paternity leave is available to:
For an adopted child, the relevant parent is the parent who is not taking adoptive leave. This allows one parent to take adoptive leave while the other takes paternity leave. A person adopting alone may take paternity leave if they are not taking adoptive leave.
Employees must notify their employer in writing at least four weeks before the intended paternity leave dates. They must also provide appropriate supporting documentation:
Employers are not necessarily required to pay employees during paternity leave. However, eligible employees may qualify for Paternity Benefit.
The main methods of terminating an employment relationship in Ireland are dismissal by the employer, resignation by the employee, and termination by mutual agreement.
Individual dismissal
Under the Unfair Dismissals Act (UDA), a dismissal is generally considered unfair unless the employer can demonstrate valid grounds for terminating the employee’s contract, taking all relevant circumstances into account.
Employees ordinarily need at least one year of continuous service to bring a claim under the UDA, although certain exceptions apply.
Even where there is a potentially fair reason for dismissal, such as misconduct or redundancy, the employer must follow a fair and reasonable procedure. Depending on the circumstances, this may include:
Redundancy
Redundancy may constitute a legitimate ground for dismissal under the UDA. However, the employer must demonstrate that a genuine redundancy situation exists under the Redundancy Payments Acts 1967–2015 and that a fair redundancy process was followed.
Although legislation does not prescribe a specific redundancy procedure, established principles generally involve:
Where employment is terminated due to redundancy, the employee may generally be entitled to:
Employers in Ireland may dismiss employees on legitimate grounds such as misconduct, poor performance, redundancy, or legal restrictions. However, employers must follow fair procedures when doing so.
Depending on the circumstances, a fair dismissal process may include:
If an employer breaches the terms of the employment contract, such as by failing to comply with applicable notice requirements, the employee may bring a wrongful dismissal claim in the civil courts and seek compensation under common law. In certain circumstances, the employee may also seek injunctive relief.
Employees who have been continuously employed for at least 13 weeks must provide their employer with at least one week’s notice when terminating their employment. If the employment contract specifies a longer notice period, the contractual period must be followed.
Employers must provide employees with minimum notice based on their length of continuous service:
Any contractual provision that provides for a notice period shorter than the applicable statutory minimum is invalid.
Employers and employees may agree to waive their right to notice or use payment in lieu of notice. Where an employer does not require an employee to work some or all of their notice period, the employee must be compensated for that period.
Unemployed individuals in Ireland may be entitled to apply for various social welfare benefits provided by the Irish government, including:
They may also access government employment services that provide support with job searching, career guidance, training programmes, and educational opportunities.
In many cases, unemployed individuals are required to register with government employment services, such as Intreo, to access benefits and other forms of support. This may involve attending regular meetings with employment officials and participating in job activation programmes.
Under the Redundancy Payments Acts 1967–1991, employees generally need at least two years of service with their employer to qualify for statutory redundancy pay. As a result, not all employees in Ireland are entitled to redundancy or severance payments.
Eligible employees are entitled to:
Statutory redundancy pay is tax-free and is subject to a maximum weekly earnings cap of €600.
When calculating an employee’s total length of service, certain periods of absence within the preceding three years may be treated as non-reckonable service. These include:
The maximum probationary period in Ireland is generally six months. The probationary period is typically set out in the employment contract and commonly lasts between three and six months.
A probationary period may be extended in certain circumstances, including:
During probation, employers may assess the employee’s performance, conduct, and suitability for the role. If the employee does not meet the required standards or expectations, the employer may terminate the employment without following the same notice requirements that apply to permanent employees.
Intellectual property (IP) created by employees in the course of their employment is generally owned by the employer. This applies to different forms of IP, including research, databases, and other innovative works produced during employment.
Employment contracts should include clear provisions covering:
Employees should maintain appropriate records of innovative work carried out on behalf of their employer. These records should document the nature of the work, when it was created, and its relevance to the employer’s business.
The employment contract should also clearly establish that IP rights in materials created or discovered during employment are to be disclosed to and owned by the employer, regardless of whether the work was carried out during normal working hours.
Employee data privacy in Ireland is governed by the Data Protection Acts of 1988 and 2003, together with the General Data Protection Regulation (GDPR), which took effect on 25 May 2018.
Under the GDPR, employers have significant responsibilities regarding the collection, use, processing, and protection of employees’ personal data. Employers must implement appropriate data protection policies and procedures, inform employees about GDPR requirements, and provide relevant training so employees understand their responsibilities under data protection law.
Employers must also establish a lawful basis for processing employee personal data. This may include:
Under Irish employment law, employers may protect their legitimate business interests against certain forms of competition by employees, particularly in relation to trade secrets, confidential information, and client relationships.
All employment contracts include an implied duty of fidelity and loyalty, which prohibits employees from engaging in competitive activities while they are employed. Irish courts have consistently recognised an employer’s right to protect confidential information and trade secrets under common law.
The Employment Appeals Tribunal (EAT) has upheld dismissals involving breaches of good faith and loyalty and, in some cases, where employers had genuine concerns about potential breaches.
Employers are not required to include express contractual provisions protecting trade secrets and confidential information. However, where a dispute arises, the employer is responsible for demonstrating that the information concerned was confidential in nature.
The right to request remote working in Ireland is governed by Part 3 of the Work Life Balance and Miscellaneous Provisions Act 2023.
Remote working involves employees performing some or all of their duties away from their employer’s premises, such as from home, a co-working space, or another remote location, while maintaining their usual working hours and responsibilities.
As of 7 March 2024, all employees have a legal right to request a remote working arrangement. Employees can make a request from their first day of employment, although they must have completed six months of continuous service with the employer before the arrangement can begin.
Remote working policies typically establish expectations and guidelines around how remote work is carried out. Employers may also support these arrangements through:
These arrangements can provide greater flexibility in how and where employees perform their work while maintaining their existing responsibilities.
Irish employment law supports flexible working arrangements, including teleworking and smart working, which allow employees greater flexibility in how and where they perform their duties.
Teleworking is an arrangement where employees perform their work remotely using telecommunications and digital technologies, typically from their home or another location outside the employer’s traditional workplace. Teleworking arrangements may be part-time or full-time, depending on the employer’s requirements and the nature of the employee’s role.
Smart working is a broader approach to flexible work that uses technology and different working practices to improve efficiency, productivity, and work-life balance. It may include:
Employers are encouraged to establish clear policies and guidelines for teleworking and smart working. These should define the rights and responsibilities of both parties and address areas such as equipment provision, communication protocols, performance management, and employee well-being.
The Irish government has also explored initiatives to support remote and flexible working, including improvements to digital infrastructure, training and support for remote workers, and regulatory frameworks that facilitate flexible working arrangements.
Under the Safety, Health and Welfare at Work Act 2005, employers are responsible for protecting the safety, health, and welfare of their employees while at work. These obligations also extend to employees working remotely from home.
Employers are responsible for:
These responsibilities apply to remote working arrangements as well as traditional workplace settings.
Hiring employees from Ireland offers several distinct advantages compared to other countries. Ireland’s business environment is also very favourable. The country is known for its pro-business policies, including favourable tax policies and incentives for foreign companies, making it easier for businesses to set up and operate.
Furthermore, Ireland’s membership in the European Union provides access to the EU market, which can be advantageous for companies looking to expand their operations within Europe.
Ireland’s convenient time zone facilitates international communication and operations. Finally, its geographic location makes Ireland a strategic connection between the US and Europe, enhancing global business operations.
Native Teams helps you employ and pay your team in Ireland directly through owned entities and infrastructure.
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