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Employment in Ireland

The employment relationship in the Republic of Ireland is governed by an extensive statutory framework, ranging from common law, statutory provisions and a variety of fundamental rights enshrined in the Irish Constitution. In addition, European Community Directives and European Court of Justice decisions apply to the employment relationship.

For these and many other reasons the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Ireland.

Key points on employment in Ireland

There are several key areas to be aware of within the Irish employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department.  These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the local laws and rules for both local employees as well as foreign nationals.

  1. Contracts

    In Ireland there is extensive freedom of contract between employer and employee. However, employment legislation must be borne in mind. There is no specific form required for a “contract of employment” per se to be issued. However, under the Terms of Employment (Information) Acts 1994 to 2012, employers are obliged to furnish employees with a minimum statement of the main terms and conditions of their employment within two months of commencement such as:

    1. Place of Work;
    2. Duration;
    3. Rate and frequency of the remuneration;
    4. Working hours (including overtime);
    5. Paid Leave;
    6. Period of notice.

    Contracts may be for a fixed or indefinite term, or for a specific purpose. Further limitations were introduced by the Protection of Employees (Fixed-Term) Work Act 2003 (which implements EC Directive 1999/70/EC).

Employee Entitlements

Information Explanation
Medical Leave ?

In the absence of an express term within the contract concerning a company sick pay scheme, or a term implied as a result of custom and practice, an employee is not considered entitled to receive money from the employer during any period of absence due to sickness or injury. Thus, during such periods of absence, the employee must rely wholly upon social welfare benefits.

Employment Termination

Information Explanation
Termination of Employment ?

As mentioned, Under the Unfair Dismissals Acts 1977 to 2007 (the “Unfair Dismissals Acts”) an employee who has worked for more than one year for the same employer is entitled to rely on the mentioned legislation to challenge a dismissal. Dismissals can be justified on:

  1. The employee’s competence, capability, conduct or redundancy.
  2. Substantial grounds justifying the dismissal, the employer must show that it acted reasonably in effecting the dismissal. Therefore, an employer planning a dismissal for poor performance should consider to apply fair procedures such as notifying the employee of the dissatisfaction and affording an opportunity to improve before effecting the dismissal.

The following minimum statutory notice periods apply to all employees who have completed a minimum of 13 weeks of continuous service with the employer:

13 weeks – 2 years = 1 week

2 years – 5 years = 2 weeks

5 years – 10 years = 4 weeks

10 years – 15 years = 6 weeks

15 years or more = 8 weeks

Outsourcing Employment Through a GEO Employer of Record Service

Compliance with local employment requirements is just one of the issues foreign companies face when employing staff in Ireland. For companies, which intend to employ their staff directly through their incorporated Irish entity, professional legal advice is recommended. Shield GEO provides an alternative path for companies to outsource the employment of their staff in Ireland.

As a Global Employer Organization (GEO), Shield GEO acts as the Employer of Record and ensures the employment is compliant with host country regulations regarding employment. In addition Shield GEO will handle payroll processing, tax and immigration. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Ireland.

The Shield GEO solution is an attractive alternative where

– the company is looking to employ staff quickly;

– the company doesn’t have an appropriately incorporated entity in Ireland;

– the company wants to work within a defined budget;

– the company wants to limit its initial commitment in Ireland;

– the company needs help with tax, employment, immigration and payroll compliance in Ireland.

Shield GEO can contract directly with the company to employ and payroll their staff in Ireland. Shield GEO supplies local employment contracts for the staff which ensure that local statutory requirements are met covering issues such as termination, probation periods, leave entitlements and statutory benefits.  Shield GEO is able to advise companies how to cover local employment regulations whilst still providing consistent global employment policies. Understand more about outsourced employment through Shield GEO.



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