Hiring guide in Ireland

What should I know about hiring in Ireland?

Legal framework

Types of employment contracts

There are two types of employment contracts that are prevalent in Ireland: fixed-term and open-ended contracts. 

Permanent contracts are typically established for ongoing, full-time employment. It usually specifies the employment terms and conditions, including salary, working hours, vacation entitlements, and additional benefits.

On the other hand, fixed-term contracts are set for a specific period, such as six months or one year. They are often used to meet temporary staffing needs, seasonal demands, or specific projects.

Content of an employment contract

Irish legislation mandates that an employment agreement must include certain provisions. These include the identification details of the parties involved (such as full name, address, fiscal code, etc.), the work location, the start date of employment, the duration of the employment (whether fixed-term or indefinite), the length of any probationary period if applicable, and the employee’s job position and description.

 Download a free employment contract for Ireland through Native Teams.

Oral, written or electronic employment contracts

It’s important to note that there is no legal requirement for the employment contract to be in written form. However, under the Terms of Employment (Information) Act, employers must provide employees with a written statement outlining specific terms of employment.

This requirement doesn’t apply to employees who have been with the company for less than one month or are expected to work fewer than eight hours per week.

Working hours

The limit for the maximum number of hours worked in an average week is set at 48 hours. This 48-hour limit does not include time taken for annual leave, sick leave, maternity leave, adoptive leave, parental leave, carer’s leave, or force majeure leave.

Night work

A night worker is generally defined as someone who works at least three hours between midnight and 7 am, with at least half of their annual working hours taking place during this time. Night workers are limited to an average of eight hours of work within a 24-hour period.

Breaks and types of leaves

Irish law grants employees the following break entitlements: a 15-minute break after 4.5 hours of work and a 30-minute break after 6 hours of work. Additionally, shop workers are entitled to a 1-hour break between 11:30 and 2:30 if their shift exceeds 6 hours.

Public holidays

Irish law grants employees the following break entitlements: a 15-minute break after 4.5 hours of work and a 30-minute break after 6 hours of work. Additionally, shop workers are entitled to a 1-hour break between 11:30 and 2:30 if their shift exceeds 6 hours.

Annual leave

Employee annual leave is determined based on a specific leave year from April 1 to March 31. However, some employers use the calendar year to calculate annual leave instead.

There are three primary methods for calculating annual leave. Firstly, if an employee works at least 1,365 hours during the leave year, they are entitled to four weeks of paid annual leave. Secondly, if employees work at least 117 hours a month, they are entitled to 33.3% of a working week as their leave. Thirdly, by calculating 8% of the total hours worked in the leave year, up to a maximum of four working weeks.

Public holidays

The public holidays in Ireland include New Year’s Day on January 1st, St. Patrick’s Day on March 17th, Easter Monday, which varies in date, May Day on the first Monday in May, the June Bank Holiday on the first Monday in June, the August Bank Holiday on the first Monday in August, the October Bank Holiday on the last Monday in October, Christmas Day on December 25th, and St. Stephen’s Day on December 26th.

Salary

As of January 1, 2024, the national minimum wage is €12.70 per hour. This legislation aims to protect employees from underpayment and ensure fair compensation for their work.

To calculate the salary and taxes in Ireland, click here.

Sick leave

An employee isn’t eligible to receive Illness Benefits when receiving Statutory Sick Pay (SSP). If an employee’s first illness in 2024 lasts fewer than 5 days and they qualify for SSP, there is no need to apply for Illness Benefit. For illnesses that extend beyond 5 days, Illness Benefit begins on the 6th day.

If an employee exhausts their 5 days of SSP in 2024 and falls ill again within the same year, they will receive an Illness Benefit starting from the 4th day of the subsequent illness, following the usual 3 waiting days. 

To qualify for Illness Benefit, an employee must be under pension age, be certified as unfit for work by a medical doctor (GP), have sufficient social insurance (PRSI) contributions, and apply within 6 weeks of becoming ill.

Parental leave

Leave must be taken before the child’s 12th birthday (or 16th birthday if the child has a disability or long-term illness). Employees are required to provide their employer with at least 6 weeks’ notice. Leave can be taken in one continuous period or in blocks of at least 6 weeks unless the employer agrees to a different arrangement.

Paternity and maternity leave

Paternity leave allows new parents to take 2 weeks off from work. Both employed and self-employed individuals can take this leave, starting anytime within the first 6 months after the baby’s birth.

During this leave, employees might not receive payment from their employer but could be eligible for Paternity Benefit. Eligible employees include the child’s father, the mother’s partner (whether spouse, civil partner, or cohabitant), and the parent of a donor-conceived child.

Methods of employment termination

The most important types of termination of an employment relationship are: dismissal by the employer, resignation by the employee or a mutual termination agreement.

Individual dismissal, as detailed in the Grounds for Termination section and under the Unfair Dismissals Act (UDA), is generally considered unjust unless there are valid grounds to justify it, taking into account all relevant circumstances. 

Redundancy can be legitimate grounds for dismissal under the UDA and may mitigate an unfair dismissal claim. However, to successfully use this defence, the employer must prove that they complied with a thorough and fair redundancy process prior to the dismissal. 

When an employee is terminated on the grounds of redundancy, their entitlement to termination or redundancy payments usually includes the requisite notice period, accrued contractual and statutory entitlements up to the point of termination.

Ordinary dismissal by employer

Employers can terminate employment on legitimate grounds such as misconduct, poor performance, redundancy, or legal restrictions. This process requires adherence to fair procedures, including providing notice or payment and allowing the employee to respond to the accusations. 

Notice period and challenging the dismissal

Employees continuously employed for at least 13 weeks must give their employer one week’s notice before terminating their employment. The notice period depends on the length of the employee’s continuous service. 

The required notice periods are as follows: one week for 13 weeks to two years of service, two weeks for two to five years, four weeks for five to ten years, six weeks for ten to fifteen years, and eight weeks for more than fifteen years of service.

Rights and obligations of unemployed individuals

Unemployed individuals can apply for various social welfare benefits offered by the Irish government, including Jobseeker’s Benefit, Jobseeker’s Allowance, and supplementary welfare allowance.

Those without employment are entitled to use government-provided employment services, which include assistance with job searching, vocational counselling, training programs, and educational opportunities.

Severance pay

To qualify for a statutory severance payment, an employee must have completed at least two years of service. This severance payment is calculated as two weeks’ salary for each year of service plus an additional week’s pay. It is tax-exempt but subject to a weekly cap of €600.

Probationary period

The employment contract usually specifies the probationary period and typically lasts 3 to 6 months. However, this period may be extended if it is in the employee’s best interest or if the employee has had an extended absence, such as sick leave, during probation.

Intellectual property rights

Under Irish employment law, intellectual property (IP) created by employees during their employment is generally owned by the employer. This rule applies to all forms of IP, including research, databases, and other innovative works produced while employed.

Employee data privacy

Employers must establish proper data protection policies and procedures and inform their employees about GDPR, providing necessary training on the regulation. Employees need to understand their responsibilities under data protection law.

Prohibition of competition

It’s well-established that employers have the right to protect their trade secrets and confidential information in employment agreements. Courts have consistently upheld this principle as part of common law. Every employment contract inherently includes a duty of fidelity and loyalty, which prevents employees from engaging in competitive actions while employed.

Remote working policy

The right to request remote work begins from the first day of employment, but employees must have a continuous tenure of six months with their employer before the arrangement can start. 

Key aspects of smart working include creating remote work policies that define expectations and guidelines for employees, investing in digital infrastructure to support seamless remote collaboration, and offering flexible work arrangements such as telecommuting and flextime.

Smart working and teleworking

In Ireland, there’s a clear distinction between smart working and teleworking. 

Teleworking is a contractual arrangement where employees perform their professional duties remotely, using telecommunication and digital technologies from a designated location outside the traditional workplace, typically their home.

While smart working involves a comprehensive framework of flexible labour practices that leverage technological advancements and innovative methodologies to enhance operational efficiency, productivity, and work-life balance.

Health and safety at home

Employers have specific responsibilities to ensure their employees’ safety, health, and welfare while at work. These obligations also apply to employees’ home workspaces if they work remotely. Key responsibilities include overseeing and managing all work operations to ensure employee safety, health, and welfare reasonably.

What are the advantages of hiring employees from Ireland vs other countries?

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, which overlaps with American and European business hours, facilitates international communication and operations. Finally, its geographic location makes Ireland a strategic connection between the US and Europe, enhancing global business operations.

Why use Native Teams for hiring in Ireland?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.