Ireland PEO

Hiring in Ireland

Thanks to its robust infrastructure, highly skilled workforce, and reputation as a hub for top companies in tech and pharmaceuticals, Ireland is a popular destination for international hiring. Companies wishing to establish a legal entity in Ireland may also benefit from its competitive corporate tax rate, pro-business regulations, and direct access to the European Union (EU) market. But before hiring in Ireland, it’s important to understand its employment regulations.

Employment relationships in Ireland are governed by national legislation, EU directives, statutory instruments, and common law, as well as collective agreements and individual contracts. The key employment laws include the Terms of Employment (Information) Act 1994-2014, the Employment Equality Acts 1998-2015, and the Organisation of Working Time Act 1997.

Because of the complexity of employment laws in Ireland, compliant employment contracts are an essential business need. With Safeguard Global as your partner, you can employ workers in Ireland with confidence, knowing that every contract for every worker meets all legal requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up to date with employment regulations as they change.

Relying on an employer of record (EOR) in Ireland

An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in Ireland. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with Ireland’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in Ireland.

The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization.

Visit our Employer of Record services page to learn how we can help you meet your international employment needs in Ireland.

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How to hire in Ireland

With a strong digital economy and a startup-friendly environment, Ireland might be a great location to expand to if your company is considering doing business in Europe. Its tax benefits and flexible business approach contribute to Ireland ranking 16^th in best for countries open for business and 24^th for ease of doing business.

Although Ireland’s government supports business, businesses are not exempt from employment laws and compliance requirements. This applies even if they are only hiring a small number of people. This guide will help ensure you have realistic expectations as you hire employees in Ireland.

How can businesses hire in Ireland?

The Irish economy remained stable and reliable throughout the pandemic. In the past few decades, the skilled labor market has made Ireland a popular destination for companies seeking top-tier talent overseas.

Employers must choose between hiring independent contractors or part-time and full-time employees when seeking to acquire talent. Your Irish workforce must meet the standards of the category you choose.

There are three options for employers planning to hire in Ireland:

Independent contractors
Direct employees
Professional Employer Organization (PEO)

We’ll break down each option to help you make the best decisions for your business growth.

Hiring Contractors

Hiring independent contractors in Ireland is a flexible way to add workers, but it can come with the risk of misclassification, and expensive fines and legal penalties, if you don’t adhere to the employment guidelines for contractors. These include:

Contractors can work for multiple companies at the once and cannot be limited to working exclusively for your business.
Contractors are responsible for their working status and schedule, the business cannot dictate specific hours of operation.
Contractors must be project-based, or they must work for shorter periods of time. If a contractor extends their time with a company, they run the risk of being classified as an employee.

We’ve heard many clients’ horror stories when it comes to hiring contractors abroad. The government considers it a misclassification if a worker does not meet the above criteria. When this happens, the worker can sue the company for benefits, overtime, holiday pay, and more.

If the agreement is not clear or followed, the government usually supports the contractor. In addition to these costs, the company may also face fines and penalties for the violation.

U.S. companies hiring and paying in Ireland need international contractors to fill out IRS Form W-8BEN. This certifies their foreign worker status in the eyes of the U.S. government. Although this step will resolve tax compliance for the employer in the U.S., the business will still need to abide by Irish employment law.

Hiring an independent contractor in Ireland can be an efficient method of employment if the above guidelines are met.

Hiring Employees Directly

If you are planning to hire part-time or full-time employees in Ireland, you will need to establish a legal entity there. Establishing a legal entity is expensive and time-consuming. It can take three to six months to complete.

Legal entities are the foundation of all operations within a country. They can impact every aspect of a business, including finance, accounting, IT, and other supply chain functions. If this is the route your business decides to pursue, it’s highly recommended that you work with an expert during this process. This ensures that the structure isn’t inefficient or costly to maintain.

In general, there are three primary components to incorporating a business in Ireland:

Incorporation and Registration
- This includes preparing the right registration documentation, corporate governance structure, business licenses, tax ID, and more.
Post Incorporation
- The work doesn’t stop once the legal entity is created. After incorporation comes the payroll setup, benefits registration, account setup, banking, and more.
Corporate Annual Compliance
- Finally, after all the setup work is complete, the entity will need to be reviewed on an annual basis. This includes tax, payroll and statutory returns, along with other important financial statements.

Outsource Hiring to a PEO Provider

Companies looking to hire employees in Ireland but don’t want to or aren’t ready to set up an entity often engage with a Professional Employer Organization (PEO). PEOs, sometimes called an employer of record (EOR), act as hiring and HR partners to your business.

A PEO hires workers on your behalf and shoulders much of the administrative burden related to the HR function of a business. This reduces the potential risks and liabilities. With a PEO, the company retains control over its employees’ daily activities, freeing up time and resources for other tasks.

By leveraging an existing network of legal entities, employers can rely on a PEO to ensure faster hiring, employee benefits, payroll administration, and more, without sacrificing compliance. Here are a few of the administrative services a PEO provides:

Fast international hiring
Payroll management
In-country compliance
Reduced risks with international contractors
Global talent acquisition
Best-in-class HR technology for international workforces
Irish employment contracts

Related: Ireland employer of record

Irish Employment Law

Working Hours

An employee may work an average maximum of 48 hours. The 48 hours of work do not include time spent on annual leave, sick leave, maternity leave, adoptive leave, or parental leave. This must be included when the employer creates the .

The contract should reflect the number of hours an employee works over 12 months. If an employer refuses a request with a dissatisfactory explanation, the employee can complain to the Workplace Relations Commission (WRC).

Leave Requirements

Annual leave (also called holidays from work) is paid time off work. All employees receive annual leave, including part-time, full-time employees, temporary, and casual workers. In most situations, employees receive four weeks of annual leave each year.

Of course, they could have more depending on the specifications of their employment contract. In addition to annual leave, here are some additional requirements businesses should be aware of:

Maternity leave
Adoptive leave
Paternity leave
Parental leave
Parent’s leave
Health and safety leave

Recordkeeping

Employers in Ireland must keep extensive records of their employees. Breach of any of the following could cause compliance violations and legal penalties. Here are a few requirements you’ll need to implement as you hire in Ireland:

The number of hours employees work on a daily and weekly basis.
The amount of leave granted to employees in each week as annual leave or as public holidays.
Details of the payments in respect of this leave.
Employees’ start and finish times.

Employment Rights

Irish employees have the right to report to the government if they feel like they’re being mistreated by an employer. Before an employee can do this, they must notify their employer of their intentions to contact the WRC. This rule was established to encourage companies to resolve employee-related disputes internally.

Payroll & PEO in Ireland

Ireland Payroll Outsourcing & Management Services

Hire and pay employees in Ireland without setting up a legal entity. With our Ireland payroll and PEO services, you select the candidate, and we handle the rest.

After successfully hiring and onboarding your employees, we manage all aspects of the payroll process, ensuring your employees are always paid accurately and on time.

Our Ireland payroll experts have an in-depth understanding of local payroll requirements and provide you with in-depth guidance and compliance support.

Our Ireland PEO Payroll Solutions Cover:

Struggling to Manage Payroll for Independent Contractors?

Global PEO Services eliminates the complexity and liabilities associated with employing and paying independent contractors. We allow you to hire your contractors as employees through our Ireland PEO. The individual continues to work for you, while we manage all aspects of payroll, HR, tax, and compliance.

The Solution to Low Headcount Payroll

Finding a payroll option for countries where you have low headcounts can be a challenge. Global PEO Services provides the solution. By using our Ireland PEO to manage your payroll, you leverage our pre-existing payroll infrastructure, teams, and processes, even if you only need payroll for just one employee. Stay flexible, save time, all while getting the payroll services and support you need.

Want to learn more about our PEO Payroll Services? Reach out to us today!

Work with Global PEO Services

Growing globally can be an exciting time for an organization. While there are always risks and challenges during global expansion, Global PEO Services (GPS), a Safeguard Global company, can help mitigate these risks, while still giving you control over your day-to-day operations. Staying updated on the laws and regulations in Ireland can make hiring and paying employees difficult.

We manage all the legal requirements and payroll, while the business manages the international team on their daily tasks. For companies hoping to hire and pay in Ireland, GPS can help you grow and remain compliant.

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