Employer of Record Guide in 

Ireland

Vacation Leave

• Minimum entitlement: 20 working days (4 weeks) per year
• Accrual: Earned at 1.67 days per month of service
• Carry-over: Up to 1 week may be carried to the following year
• Payment: Must be paid at normal rate during leave
• Payout: Unused leave must be paid on termination

Sick Leave

Ireland introduced statutory sick pay in 2023:

• Entitlement: Up to 3 days in first year, increasing to 10 days by fourth year
• Rate: 70% of normal weekly earnings (capped at €110 per day)
• Waiting period: No payment for first day unless absence exceeds 4 consecutive days
• Medical certification: Required for absences over 2 consecutive days

Maternity Leave

• Duration: 26 weeks (6 weeks must be taken after birth)
• Payment: Maternity Benefit paid by Department of Social Protection (€274 per week in 2024)
• Eligibility: Must have 39 weeks PRSI contributions
• Job protection: Right to return to same or similar position

Parental Leave

• Duration: 26 weeks per child (up to age 12)
• Payment: 7 weeks paid Parental Benefit (€274 per week), remainder unpaid
• Flexibility: Can be taken in blocks of minimum 1 week
• Eligibility: Must have 39 weeks PRSI contributions

Bereavement Leave

• Duration: 3 consecutive days for immediate family members
• Payment: Unpaid (unless employer policy provides otherwise)
• Qualifying relationships: Spouse, partner, child, parent, sibling, grandparent, grandchild

Personal & Family Leave

• Force majeure leave: Up to 3 days per year for family emergencies (unpaid)
• Carer's leave: Up to 104 weeks to care for someone requiring full-time care
• Adoptive leave: 24 weeks for adoptive parents

Summary

Termination Types

Dismissal for Misconduct:

• No notice required for gross misconduct
• Must follow fair procedures and natural justice
• Examples: theft, serious insubordination, breach of confidentiality

Redundancy:

• Position no longer required by business
• Statutory redundancy payment required
• Must follow consultation procedures

Ordinary Dismissal:

• Performance, capability, or other substantial reasons
• Requires proper notice period
• Must follow fair procedures

Notice Period Requirements

Minimum statutory notice periods based on length of service:

Employers may provide payment in lieu of notice.

Severance Pay

Statutory Redundancy:

• 2 weeks' pay per year of service
• Plus 1 additional week's pay
• Based on gross weekly pay (capped at €600 per week)
• Tax-free up to €10,160, plus €765 per year of service

Example calculation for 5 years' service: (2 × 5) + 1 = 11 weeks' pay

Probationary Periods

• Maximum duration: 12 months (6 months typical)
• Notice during probation: 1 week after 13 weeks of service
• Unfair dismissal protection: Applies after 12 months of continuous service
• Must be clearly stated: In employment contract

Final Pay Requirements

Final payments must include:

• Outstanding salary and overtime
• Accrued but untaken annual leave
• Any contractual bonuses or commissions
• Statutory redundancy (if applicable)

Timeline: Must be paid on normal pay date or within reasonable time of termination.

Anti-Discrimination & Retaliation Laws

Employees cannot be dismissed for:

• Pregnancy or maternity-related reasons
• Trade union membership or activities
• Making protected disclosures (whistleblowing)
• Exercising statutory rights
• Any of the nine grounds covered by equality legislation (gender, age, race, religion, disability, sexual orientation, civil status, family status, membership of Traveller community)

National Public Holidays

Ireland has 9 statutory public holidays:

Holiday Pay Entitlements

Employees are entitled to:

• Option 1: Paid day off on the public holiday
• Option 2: Paid day off within a month of the public holiday
• Option 3: Additional day's annual leave
• Option 4: Additional day's pay

Working on Public Holidays

If an employee works on a public holiday:

• They receive normal day's pay plus one of the four options above
• Effectively double pay for working the holiday
• Must be voluntary (except for essential services)

Regional Variations

Ireland does not have regional public holidays. All statutory holidays apply nationwide, though some local authorities may observe additional local holidays.

Required Documents for Employment

Essential documentation:

• Employment contract: Must include job title, duties, salary, working hours, holiday entitlement, notice periods
• Terms and conditions: Written statement within 5 days of starting employment
• PPS Number: Personal Public Service Number (Irish equivalent of social security number)
• Tax documents: Form 12A for tax credits and rate bands
• Bank details: For salary payments (IBAN format required)
• Work permit: If applicable for non-EU nationals

Language Requirements

• Primary language: English (Irish/Gaeilge also official but not required)
• Contract language: Must be in English or Irish
• Translation: Non-English documents may need certified translation
• Communication: Workplace communication typically in English

Background Checks & References

Permitted checks:

• Garda vetting: Required for certain roles (childcare, healthcare, finance)
• Employment references: Standard practice, must be relevant to role
• Educational verification: Allowed if job-related
• Credit checks: Only for financial services roles
• Medical examinations: Only if essential for role performance

Data protection: All checks require explicit consent and must comply with GDPR.

Data Protection & Privacy

GDPR compliance mandatory:

• Lawful basis: Required for processing personal data
• Consent: Must be freely given, specific, and informed
• Data minimisation: Only collect necessary information
• Retention: Clear policies on how long data is kept
• Rights: Employees have right to access, rectify, and erase data
• Data Protection Officer: Required for large-scale processing

IP Assignment & Confidentiality

Intellectual property:

• Default rule: Work created during employment belongs to employer
• Contract clauses: Should explicitly state IP ownership
• Inventions: Special rules apply to employee inventions
• Confidentiality: Must be reasonable in scope and duration
• Post-employment restrictions: Must protect legitimate business interests

Probation Period Setup

Best practices:

• Duration: Typically 6 months (maximum 12 months)
• Clear criteria: Define performance expectations
• Regular reviews: Monthly or quarterly assessments
• Documentation: Keep records of performance discussions
• Notice period: 1 week notice after 13 weeks of service
• Extension: Possible but must be agreed in writing

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract drafting and execution
• Payroll setup and tax compliance
• PRSI and statutory contribution management
• Holiday and leave administration
• Local employment law compliance
• GDPR-compliant data processing
• Termination procedures and documentation

Worker Classification: Employee vs. Contractor

Irish law strictly distinguishes between employees and independent contractors, with significant implications for both parties.

Employee indicators:

• Works under direction and control of employer
• Integrated into business operations
• Receives regular salary with deductions
• Entitled to employment rights and protections
• Uses employer's equipment and premises

Contractor indicators:

• Operates independently with own business
• Controls how work is performed
• Invoices for services provided
• Responsible for own tax and PRSI
• Uses own equipment and bears financial risk

Consequences of misclassification:

• Revenue audits and penalties
• Backdated PRSI and tax liabilities
• Employment rights claims
• Potential unfair dismissal cases

Unionisation & Collective Agreements

Trade union landscape:

• Approximately 25% of Irish workforce is unionised
• Strong presence in public sector and traditional industries
• Right to join trade unions protected by law
• Collective bargaining common in larger organisations

Key considerations:

• Recognition: No automatic right to union recognition
• Industrial relations: Disputes handled by Workplace Relations Commission
• Strikes: Legal with proper notice and procedures
• Collective agreements: Can override individual contract terms

Cultural Norms & Workplace Expectations

Irish workplace culture:

• Communication style: Direct but diplomatic
• Hierarchy: Relatively flat organisational structures
• Work-life balance: Increasingly important, especially post-COVID
• Punctuality: Expected for meetings and deadlines
• Social aspects: Workplace socialising common and valued

Diversity and inclusion:

• Strong legal framework prohibiting discrimination
• Growing focus on inclusive workplace practices
• Gender pay gap reporting required for large employers
• Reasonable accommodation duties for disabilities

Remote Work Considerations

Legal framework:

• Right to request: Employees can request remote working arrangements
• Employer obligations: Must consider requests reasonably
• Health and safety: Employer duties extend to home working
• Equipment: Employer typically provides necessary tools
• Tax implications: Home office expenses may be deductible

Practical considerations:

• Broadband allowances: Often provided by employers
• Insurance: Employer liability insurance covers home working
• Data protection: Enhanced security measures required
• Performance management: Clear objectives and regular check-ins essential

Cross-border remote work:

• Tax residency: Can be affected by working location
• Social insurance: May impact PRSI obligations
• Employment law: Irish law applies to Irish-based employees
• Visa requirements: May affect non-EU nationals' work authorisation