PEO Ireland

World Bank Ease of Doing Business Ranking

• DB Rank – 24
• DB Score – 79.6

Rankings on Doing Business topics – Ireland

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Global PEO in Ireland

Ireland, as a Professional Employer Organization (PEO) country, presents an enticing landscape for businesses seeking to establish a foothold in Europe. Renowned for its pro-business policies, favorable tax regime, and strategic access to the European Union’s market, Ireland has become a top choice for companies looking to expand internationally. Its stable political climate and well-established legal system offer a secure environment for businesses to thrive. Additionally, Ireland’s highly skilled and multilingual workforce, coupled with a strong focus on research and development, ensures that businesses can tap into a pool of talent known for its adaptability and innovation. PEO services in Ireland provide invaluable assistance in navigating the country’s complex employment regulations, managing payroll, and handling HR functions, making it easier for foreign companies to seamlessly integrate into the Irish market and capitalize on the myriad opportunities it has to offer.

What Is a PEO?

A PEO, or Professional Employer Organization, is a company that provides a range of HR and payroll services to small and medium-sized businesses. These services can include employee benefits, payroll, compliance with labor laws, and recruiting and training.

PEOs work by entering into a co-employment agreement with the businesses they serve. In this arrangement, the PEO becomes the employer of record for the business’s employees, taking on responsibilities such as payroll, tax withholding, and employee benefits. The business, however, retains control over its day-to-day operations and the supervision of its employees.

PEOs can help businesses streamline their HR and payroll processes, reduce costs, and free up time and resources to focus on their core business activities. They can also provide access to a range of benefits and resources that small businesses may not be able to afford or manage on their own.

PEOs are also understood as employer of record / EOR at times.

Ireland – Country Overview

Ireland is in Western Europe, separated from the United Kingdom to the east by multiple bodies of water. The nation is a small country whose economic growth is reliant on commerce. Since 2017, the Irish economy has expanded, owing to significant job growth, a robust export industry, and low inflation.

Capital City

Dublin

Currency

Euro (€)

Principal Language

English, Irish Gaelic

Government

Parliamentary Republic

Employment Contracts in Ireland

In Ireland, an employment contract can be either in writing or verbal.

However, under the Terms of Employment (Information) Act, an employer must provide employees with a written summary of terms and conditions within two months after their start date.

Some of the details typically mentioned in the written employment contract in Ireland include:

• Employment start date and expected employment duration (if a temporary contract)
• Location and nature of the work
• Information about collective bargaining agreements that affect employment conditions
• and more

The different types of employment relationships are:

• Permanent Employment – Irish labor law does not particularly address permanent employment. However, per the Terms of Work (Information) Act, an employer must provide a written statement of terms and conditions within two months of the start date of employment.
• Fixed-Term Contracts – In Ireland, the employment of a fixed-term employee is:
  • to perform specific work or project
  • under a contract with a particular start and end date
  • under a contract whose continuation is contingent on a particular event, such as external funding
• Temporary Employment – The Terms of Employment (Information) Act of Ireland defines an “agency worker” as an individual recruited by an employment agency under an employment contract that allows the individual to be assigned to work for and under the direction and supervision of an employment agency.”

Probationary Period

A probationary period typically lasts up to 12 months in Ireland.

Working Hours in Ireland

Ireland’s statutory maximum working hours are 48 hours per week, and the average workweek is determined over four months.

Employee Leave in Ireland

Employees in Ireland are entitled to the following leaves:

• Annual leave in Ireland – Employees are allowed yearly paid leave of 4 weeks per year.
• Maternity leave in Ireland – Female employees can take paid maternity leave of 26 weeks and additional unpaid maternity leave of 16 weeks.
• Sick leave in Ireland – Employees in Ireland usually do not have a legal entitlement to their employer’s pay while on sick leave. On the other hand, employers can set their sick-leave policies and agree to pay employees while they are unwell.
• Paternity leave in Ireland – Male employees can take two weeks of paid paternity leave which employees must take consecutively.

Holidays

The following are the statutory national holidays in Ireland:

• January 1 – New Year’s Day
• March 17 – St. Patrick’s Day
• April 18 – Easter Monday
• May 2 – May Day
• June 6 – June Bank Holiday
• August 1 – August Bank Holiday
• October 31 – October Bank Holiday
• December 25 – Christmas Day
• December 26 – St. Stephen’s Day

Other Paid Leave

• Ireland recognizes 10 paid holidays and employers are required to provide an extra 20 days of paid time off to Irish workers. 
• There is no national sick leave policy, but employers generally outline the conditions in the employment contract. 
• Employees are entitled to 26 weeks of paid maternity leave, paid by the state. They can also take an additional 16 weeks of unpaid leave. The minimum requirement is 2 weeks before birth and at least 4 weeks after. 
• Paternity leave is for 2 weeks whether the child was just born or adopted. Parents can take 26 weeks of unpaid leave for each child under the age of 12. 

There are also leaves for adoptions, family emergencies, and caring for incapacitated persons. 

Taxation

Payroll taxes and deductions 

Both the employer and employee have required contributions, found below. 

Employer deductions: 

• 8.8% to 11.05% for the social insurance program (Pay Related Social Insurance – PRSI)

Employee deductions: 

• Universal Social Charge (USD), ranging from 0.5% to 8%
• 4% and up for the social insurance program (PRSI)

Employee Termination in Ireland

Employers in Ireland must give their employees a one-week notice to terminate an employment relationship after being employed continuously for at least 13 weeks.

Employers are required to provide employees with the following notice periods in Ireland based on their continuous service:

• Employment between 13 weeks to 2 years – 1 week
• Employment of 2 to 5 years – 2 weeks
• Employment of 5 to 10 years – 4 weeks
• Employment of 10-15 years – 6 weeks
• Employment of more than 15 years of – 8 weeks

Global Mobility in Ireland

There are typically the following categories of visas in Ireland:

• Long-stay “D” visas (over 90 days)
• Short-stay “C” visas (up to 90 days)
• Multiple-entry and single-entry visas
• Re-entry visas

Most non-EEA nationals need work permits in Ireland. There are generally nine different employment permits under the Employment Permits (Amendment) Act of 2014.

• General Employment Permits (formerly work permits)
• Critical Skills Employment Permits (formerly Green Card permits)
• Dependent/Partner/Spouse Employment Permits
• Reactivation Employment Permits
• Contract for Services Employment Permits
• Intra-Company Transfer Employment Permits
• Internship Employment Permits
• Sport and Cultural Employment Permits
• Exchange Agreement Employment Permits

Employee Benefits in Ireland

Social insurance, often known as social welfare, is a government-mandated insurance program that provides financial help to the elderly, disabled, injured, and unemployed.

Currently, the State offers two types of retirement pensions:

• State Pension (Contributory)
• State Pension (Non-Contributory)

Some examples of social insurance programs in Ireland are:

• Dependents’/Survivors Benefit – In Ireland, Widow’s, Widower’s, or Surviving Civil Partner’s (Contributory) Pension is a weekly payment to the widow, widower, or civil partner of a deceased person.
• Life and Disability Insurance/Benefit – In Ireland, the State pays compensation to insured people wounded or disabled due to an accident, whether at work or while commuting to or from work. The Occupational Injuries Scheme likewise covers employees who have suffered a work-related sickness.