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  • Legal system, currency, language

    Common law. Member of the EU and required to implement relevant EU directives. The official currency is the Euro (EUR). The official language is English.

  • Corporate presence requirements & payroll set-up

    A foreign entity may engage employees in Ireland if it has proper payroll registrations, subject to business and corporate tax planning considerations. Through the payroll, withholdings should be made on any remuneration, including benefits in kind, payable to the employees in Ireland, for income tax up to 40 percent, the Universal Social Charge up to 8 percent and social insurance contribution (PRSI) up to 11.05 percent for the employer and 4 percent for the employee. PRSI contribution rates will increase by 0.1 percent from October 1, 2024. Self-employed independent contractors are generally paid gross and are responsible for their own taxation.

  • Pre-hire checks

    Required

    Immigration compliance. Criminal record checks are permissible only in limited circumstances (eg, for those who work with children, with vulnerable adults and in security).

    Permissible

    Reference and education checks are common and permissible with applicant consent. 

  • Immigration

    Nationals of the European Economic Area (EEA), UK and Switzerland have the right to work in Ireland. Other nationals require permission to work via an employment permit.

  • Hiring options

    Employee

    Indefinite, fixed-term, full-time or part-time. Part-time and fixed-term employees have the right not to be discriminated against on the basis of their status.

    Independent contractor

    Independent contractors may be engaged directly by the company or via a personal services company. Engagement may be subject to misclassification exposure.

    Agency workers

    Agency workers are common. Agency workers have the right to equal treatment to employees in relation to pay, working hours and other benefits.

  • Employment contracts & policies

    Employment contracts

    Within 5 days of commencement of employment, an employer must provide the employee with a written statement of core terms of employment. Other minimum terms must be given within 1 month of commencement of employment.

    Probationary periods

    Permissible. Should not exceed 6 months but can be extended to up to 12 months in exceptional circumstances if it is in the interest of the employee. 3 to 6 months is common. For fixed-term employees, the probationary period should be proportional to the term.

    Policies

    A written health and safety policy, disciplinary and bullying and harassment policies and procedures are mandatory. Grievance and IT-related policies are common and recommended.

    Third-party approval

    There is no 3rd-party approval requirement in Ireland.

  • Language requirements

    No statutory requirement. Usually provided in English. Should be in a language the employee can understand.

  • Working time, time off work & minimum wage

    Employees entitled to minimum employment rights

     

    Working hours

    Working time is limited to 48 hours per week calculated over a 4-month period, subject to certain exceptions. Rules on rest breaks, night work and rest periods between shifts also apply. Zero-hour contracts have recently been prohibited in most circumstances, and banded-hours contracts have been introduced for employees whose actual hours do not reflect their contracted hours.

    Overtime

    As long as overall pay does not fall below the statutory minimum, there is no obligation to provide pay for overtime worked. A premium must be paid for Sunday work, unless the fact that the individual must work on a Sunday has already been taken into account in determining pay.

    Wages

    The National Minimum Wage increased from EUR11.30 per hour to EUR12.70 per hour from January 1, 2024. 19 year olds are entitled to EUR11.43, 18 year olds are entitled to EUR10.16 and those under 18 are entitled to EUR8.89.

    Vacation

    There are 10 public holidays. Employees are further entitled to:

    Annual leave entitlement is based on hours worked:

    • 4 working weeks in a leave year in which the employee works at least 1,365 hours or
    • 1/3 of a working week for each month in the leave year in which the employee works at least 117 hours or
    • 8 percent of the hours the employee wok in a leave year (subject to a maximum of 4 weeks). 

    Sick leave & pay

    Employees with at least 13 weeks’ service are entitled to 5 days’ sick pay a year. The number of statutory sick days available to employees will increase incrementally to 10 by 2026. Sick pay is paid by the employer at 70 percent of the employee’s normal pay, up to a maximum of EUR110 a day.

    Maternity/parental leave & pay

    26 weeks’ ordinary maternity leave, during which the employee may be entitled to maternity benefit from the state, plus 16 additional weeks during which no state benefit is payable. General right to return to work.

    24 weeks’ ordinary adoptive leave, during which the employee may be entitled to adoptive benefit from the state, plus 16 additional weeks during which no state benefit is payable. General right to return to work.

    26 weeks’ unpaid parental leave to be taken before the child reaches the age of 12.

    2 weeks’ paternity leave, during which the employee may be entitled to paternity benefit from the state. This entitlement applies to any parent who is a "relevant parent" – the child's father; the spouse, civil partner or cohabitant of the child's mother; or adopting mother or sole male adopter, as well as parents of a donor-conceived child. Same-sex couples jointly adopting a child must choose 1 parent to be the "relevant parent."

    7 weeks’ paid parent’s leave for a child born or adopted on or after July 1, 2022, which will increase to from 9 weeks in August 2024. May only be taken within 2 years of the birth of the child or in the 1st 2 years of adoption.

    Other leave/time off work

    Employees may also be entitled to leave for jury service, carer’s leave, force majeure leave, medical care and domestic violence leave. 

  • Discrimination & harassment

    Direct discrimination, indirect discrimination, victimization and harassment are prohibited. Employers are under a duty to make reasonable adjustments for persons with disabilities.

    Characteristics protected from unlawful discrimination and harassment include gender, age, race/nationality, religion, family status, civil status, disability, sexual orientation and/or membership of the Traveller community.

  • Whistleblowing

    A new national law has been introduced to implement the EU Whistleblower Protection Directive which significantly expands the scope of the protections for those who make protected disclosures and places enhanced obligations on organizations.

  • Benefits & pensions

    No compulsory benefits beyond those covered by social insurance contributions. Proposed legislation is expected to provide a new auto-enrollment pension scheme in Ireland by late 2024, however the timing is currently uncertain.

  • Data privacy

    Ireland is subject to the General Data Protection Regulation (GDPR), which places significant obligations and onerous sanctions for employers. GDPR requires employers to identify a legal basis for their processing of personal data, and it is unlikely that a catch-all consent will enable processing of employee data by an employer. Employers must ensure that they have GDPR-compliant documentation and that they are able to deal with the new rules on subject access requests. There continue to be significant restrictions on monitoring employees, including email and internet use.

  • Rules in transactions/business transfers

    The European Communities (Protection of Employees on Transfer of Undertakings) Regulations transpose the Acquired Rights Directive and provide for automatic transfer of employees with undertakings – or parts of undertakings – which retain their identity post-transfer.

    On a business transfer, there is also a duty to inform and consult with employee representatives and a prohibition on transfer-related dismissals, unless dismissal is justified on economic, technical or organizational grounds.

  • Employee representation

    Trade unions are prevalent in the manufacturing, transport and public sectors. Many businesses have no union or other worker representation, and works councils are uncommon. Industry-level collective bargaining exists.

    No right of recognition for a trade union.

  • Termination

    Grounds

    Termination permissible, if a fair process has been followed, on the following grounds: misconduct, capability (including performance and ill health), redundancy, illegality and "some other substantial ground of a kind to justify dismissal."

    Employees subject to termination laws

    Employees with less than 1 years' service have limited protection against unfair dismissal.  Employee protections exist for dismissals which do not have a minimum length of service requirement, including:  dismissals for whistleblowing, dismissals based on discriminatory grounds or trade union membership and activities.

    Dismissals for misconduct, including in the 1st year, must follow a proper process. The contract of employment should be reviewed prior to any termination.

    Restricted or prohibited terminations

    Transfer-related dismissals are void unless justified on economic, technical or organizational grounds.

    Third-party approval for termination/termination documents

    • 0 to 13 weeks: none

    • 13 weeks to 2 years: 1 week
    • 2 years to 5 years: 2 weeks
    • 5 years to 10 years: 4 weeks
    • 10 years to 15 years: 6 weeks
    • 15 years or more: 8 weeks

    Notice is not required for terminations for gross (ie, extremely serious) misconduct. Longer notice may be agreed and set out in the contract of employment.

    Mass layoff rules

    Strict information and consultation rules apply in certain collective redundancy situations. The employer must also notify the Minister for Enterprise, Trade and Employment.

    Notice

    Statutory minimum notice requirements:

    • Pp to 13 weeks: none
    • 13 weeks to 2 years: 1 week
    • 2 years to 5 years: 2 weeks
    • 5 years to 10 years: 4 weeks
    • 10 years to 15 years: 6 weeks
    • 15 years or more: 8 weeks

    Notice is not required for terminations for gross (ie, extremely serious) misconduct. Longer notice may be agreed and set out in the contract of employment.

    Statutory right to pay in lieu of notice or garden leave

    There is no statutory right and entitlement to either pay in lieu or garden leave; depends on contract terms.

    Severance

    Severance is payable only to redundant employees with 2 years' service at the rate of 2 weeks' pay per year of service plus an additional week's pay. "Pay" is capped at EUR600 per week. More generous terms are possible and quite common.

  • Post-termination restraints

    Considered in restraint of trade and void. However, those that protect the employer’s legitimate business interests may be enforced if reasonable. Restraints must be tailored for the specific business and the risks posed by the employee. Garden leave is common for senior employees.

    Non-competes

    Permissible in narrow, justifiable circumstances. Typical duration is no longer than 3 to 6 months with an absolute maximum of 12 months, depending on the circumstances. The geographical area must also be reasonable and not be extensive.

    Customer non-solicits

    Permissible in specific circumstances. Typical duration is no longer than 3 to 6 months with an absolute maximum of 12 months, depending on the circumstances. The geographical area must also be reasonable and not be extensive.

    Employee non-solicits

    Permissible. Length of restriction depends on the circumstances.

  • Waivers

    Enforceable, but employees must have been advised to and afforded the opportunity to take independent legal advice prior to signing a settlement agreement waiving employment rights.

  • Remedies

    Discrimination

    The Workplace Relations Commission may order re-engagement, re-instatement or award compensation of up to 2 years' remuneration.

    Unfair dismissal

    The Workplace Relations Commission may order re-engagement, re-instatement or award compensation of up to 2 years' remuneration. Claimant is under a duty to mitigate loss.

    For a transfer-related dismissal, compensation is not limited to financial loss and may be punitive.

    In whistleblowing dismissals, compensation may be up to 5 years' remuneration.

    Failure to inform and consult

    In the context of a mass redundancy, failure to inform and consult may amount to a criminal offense. In the context of a business transfer, such failure can result in up to 4 weeks' pay per complaining employee.

  • Criminal sanctions

    Failure to notify the Minister for Enterprise, Trade and Employment about mass layoffs is a criminal offense, although prosecution is rare. Employing a non-EEA or Swiss national without the required work permit is also a criminal offense. Failure to provide employees with a written statement containing 5 core terms of employment within 5 days of them commencing employment is also a criminal offense.

  • Key contacts
    Ciara McLoughlin
    Ciara McLoughlin
    Partner DLA Piper Ireland [email protected] View bio
    Alice Duffy
    Alice Duffy
    Legal Director DLA Piper Ireland [email protected] T +353 1 487 6659 View bio

Benefits & pensions

Ireland

No compulsory benefits beyond those covered by social insurance contributions. Proposed legislation is expected to provide a new auto-enrollment pension scheme in Ireland by late 2024, however the timing is currently uncertain.