Benefits of using an Italian PEO & Employer of Record
- Expand without an entity
- Flexible and cost-effective solution to outsource payroll and HR functions for international expansion
- In compliance with foreign local laws & regulations
- Minimizes employment liabilities and risks
- Reduced risk, as the risks of being an employer fall almost completely on the employer of record
- Let's you focus on your core business
- You manage your employees
- EoR takes care of registration and contact with local authorities
Employment Contracts 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 in Ireland? Most employees work under open-ended contracts of employment (permanent contract). 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. The term, fixed-term, covers employees whose contract ends on a specified date, or when a specific task is completed, or when a specific event occurs. Generally, a fixed-term contract ends on an agreed date.
Irish PEO and EOR service providers will support you with the set-up of a local employment contract.
Employment Termination Ireland - Notice Period Ireland
As you may know, employment in Europe is more employee-friendly than employer-friendly in comparison to North America. An example that showcases the 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|
Employers in Ireland are not required to pay severance to employees who have been terminated.
Social Security Tax for 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: 4.00%
- Total: 15.05%
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.
Average Salary Ireland & Average Employer Costs Ireland
What are the costs of employing employees in Ireland? In 2019, the average annual wage in Ireland was $ 50.490,47. This is lower than the average annual wage in the United States: $65.835,58. As an employer, the actual employer costs are around 30% higher than the gross annual salary. Based on a $ 50.490,47 annual salary, the employment costs would be $56.069,67
To learn more about the average salaries in Europe and the actual employment costs in Europe, we invite you to read this article on Costs of hiring European employees.
Working Hours Ireland
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, is sometimes outlined in a collective bargaining agreement or is negotiated in the employment contract.
Paid Vacation Leave Ireland
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 For more information on paid vacation days in Europe, please feel free to read our blog on paid vacation days in Europe 2021.
Public Holidays Ireland
In Ireland, there are 9 public holidays.
- New Year's Day
- St. Patrick' Day
- Easter Monday
- Early May Bank Holiday
- June Bank Holiday
- August Bank Holiday
- October Bank Holiday
- Christmas Day
- 2nd Day of Christmas (St. Stephen's Day)
Maternity and Paternity Leave 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 if the worker has contributed enough so social insurance, as employers are not obligated to pay. The weekly standard rate is 245.00 EUR. More information about maternity leave in Europe can be found in this blog.
Paternity leave in Ireland: 2 weeks of paid leave is given during any time within 26 weeks of the birth or adoption.
Why do you need a PEO in Ireland?
- Italian law and regulations are complicated, save yourself time and money by partnering up with a PEO
- Reduce the risks of non-compliance payroll
- Let's you focus on your core business
- As PEO we take responsibility for all employment tasks and compliant payslips, including taxes and other contributions
- As experienced PEO, we’re able to help you out get work permits, visas and onboardings really fast
Learn more about PEO and EOR in Europe:
Get in contact or request a quote
Learn more about PEO and EOR in other European countries:
Monique Ramondt Sanders
Executive Vice President | HR Outsourcing