Employment Law

Irish Employment Contract

Irish law requires every employee to have a formal written contract of employment. These contracts should include all relevant details of the position, such as salary, expected responsibilities, and any rights and benefits. The contract should be written in English and in the local currency Euro. The contract must also be signed by both the employer and employee.

Fixed Term

Indefinite

Working Hours in Ireland

The standard working week in Ireland is five days and 40 hours. The maximum is usually 48 hours. Overtime is not required by law, but many employers do choose to provide it.

Holiday Policy

Ireland Vacation

Generally speaking, full-time employees in Ireland are entitled to four weeks (20 days) of paid leave per year. This may vary in certain circumstances, for example if the employee is part-time or only works part of the year.

Irish Sick Leave

There are no standard requirements for employees to take paid sick leave in Ireland. However, many employers do choose to provide an annual stipend, which should always be stated in the employment contract.

Maternity and Paternity Leave in Ireland

Female employees in Ireland are entitled to 26 weeks of maternity leave, with at least two weeks before and four weeks after the birth. Maternity leave is generally paid by the state. Mothers can also choose to take up to 16 additional weeks of unpaid leave.

Parents other than the mother can also take up to two weeks of paid parental leave until the child is six months old.

Irish Tax Law

Most employees and employers in Ireland are required to pay into the country's social security scheme (PRSI). For employees earning above a certain level, the contribution is 4% of salary, with employer contributions ranging from 8.5% to 10.75% depending on income level.

There is also a payment called the Universal Social Charge (USC), which employees must contribute between 1% and 8% of their salary.

Income tax in Ireland ranges from 20% to 40%, depending on income level.

Ireland's corporation tax is generally 12.5%, but other rates apply to certain different types of businesses and income.

Health Insurance in Ireland

Ireland has public healthcare, so employers are not required to provide private insurance to their employees, although some do choose to do so.

Employee Severance Pay and Termination of Contract in Ireland

Employees in Ireland are generally entitled to receive notice of dismissal. The mandatory notice period ranges from one to eight weeks, depending on the employee's length of service.

When employees are laid off, they are generally entitled to one week of severance pay, plus two weeks of severance pay for each year of service with the employer.

Salary and Benefits

Ireland's Compensation Law

As of February 2020, the minimum age for workers over the age of 18 in Ireland is €10.10 per hour.

Benefits Administration in Ireland

Employees in Ireland often expect benefits packages as part of their employment agreement, so you may need to set up a benefits administration system when recruiting in the country. But setting up and managing a benefits system in Ireland can be complex, especially if you're unfamiliar with the country's unique regulations and procedures.

Remoly can help you significantly simplify this step of your Irish expansion by providing benefits administration outsourcing. Our team can advise you and handle the set-up of your benefits scheme, allowing you to focus on expanding your organization in Ireland.