PEO & EOR services in Ireland
Ireland offers a diverse range of PEO/EOR employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.
Employment contracts through EOR/PEO in Ireland
Anyone who works for an employer for a regular wage or salary automatically has a contract of employment. Since 4 March 2019, the employee must receive part of this statement, containing certain core terms of employment, within the first 5 days of starting a job. The employee must receive the remaining terms in writing within 2 months of starting work.
What are the main types of employment contracts through PEO/EOR services in Ireland?
Most employees work under open-ended contracts of employment (permanent contracts). In other words, the contract continues until the employer or employee ends it (including the notice period). Many others, however, work under fixed-term contracts. This type of contract covers employees whose contract ends on a specified date, when a specific task is completed, or when a specific event occurs. Generally, a fixed-term contract ends on an agreed date.
PEO/EOR employment termination and notice period in Ireland
As you may know, employment in Europe is more employee-friendly than employer-friendly in comparison to North America. An example that showcases employee-friendliness is employment “at will”. Employment “at will” is not an option in Ireland.
In Ireland, the length of the notice period is provided, dependent on the duration of employment. If an employee feels the dismissal is unfair, they may ask for a written statement reasoning the dismissal. The minimum notice in Ireland is as follows:
|Duration of Employment||Minimum Notice|
|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||8 weeks|
Ireland PEO/EOR employers are not required to pay severance to employees who have been terminated.
Ireland PEO/EOR employment: Salary, employer costs and working hours
What are the costs of employing employees in Ireland? In 2022, the average annual wage in Ireland was $44.911,44. This is lower than the average annual wage in the United States: $53.490,00.
As an employer through PEO/EOR services in Ireland, the actual employer costs are around 30% higher than the gross annual salary. Based on a $44.911,44 annual salary, the employment costs would be $58.384,87.
A full-time workweek is 39 hours. A workweek cannot exceed 48 hours on average over a 4-month period. Ireland does not have statutory overtime pay. However, it is sometimes outlined in a collective bargaining agreement or is negotiated in the employment contract.
Paid vacation leave and public holidays in Ireland PEO/EOR employment
Full-time employees in Ireland receive 20 days of paid annual vacation. More leave is possible if it’s within the employee’s contract. Sometimes, the employer can decide when annual leave is taken. Paid leave will only carry over if it is agreed upon between the employer and employee.
In Ireland, there are 9 public holidays.
- New Year's Day – 1 January
- St. Patrick's Day – 17 March
- Easter Monday – 18 April
- Early May Bank Holiday – 2 May
- June Bank Holiday – 6 June
- August Bank Holiday – 1 August
- October Bank Holiday – 31 October
- Christmas Day – 25 December
- 2nd Day of Christmas (St. Stephen's Day) – 26 December
Maternity and paternity leave through PEO/EOR in Ireland
Mothers in Ireland can take up to 26 (156 days) weeks of maternity leave and can receive an extra 16 weeks of unpaid leave. The maternity leave begins immediately after the end of maternity leave. Mothers must take at least 2 weeks before the expected birth and at least 4 weeks after. Entitlement for paid leave depends on whether the worker has contributed enough to social insurance, as employers are not obligated to pay. The weekly standard rate is 245.00 EUR.
Paternity leave in Ireland: 2 weeks of paid leave is given at any time within 26 weeks of the birth or adoption.
Find out everything you need to know about maternity leave in other European countries.
Social Security tax for PEO/EOR employers in Ireland
Are there social security taxes in Ireland? Yes, in Ireland, both the employer and the employee have to pay social security taxes to the Pay-Related Social Insurance (PRSI).
- Paid by employer: 11.05%
- Paid by employee: 4.50%
- Total: 15.55%
Click on the following link to have an overview of the social security tax rates for employers in Europe in 2021. On average, the social security tax rate for employers in Europe in 2021 is 20%. This is a lot higher than North American employers are used to.
To learn more about the social security tax in Europe, we invite you to read this article on Social Security Tax Rates for Employers Across Europe.
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Europe is home to a diverse range of countries, each with its unique employment characteristics. These reflect the diverse economic and cultural landscapes across the continent.
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Get in touch with our team of experts to identify the best PEO and EOR solutions for your needs in Ireland today. Our HR Outsourcing services provide you with the right helping hand to enable you to grow.
CCO & VP of HR Outsourcing