Quick facts

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Ireland, known for its strong economy and favorable business climate, is home to many multinational corporations, particularly in the tech, pharmaceuticals, and finance sectors. With its well-educated workforce, Ireland offers a range of labor protections, including fair employment contracts, regulated working hours, and a solid framework for employee rights.

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Employment Contracts

In Ireland, employment contracts can be written, oral, or implied. Employers must provide a written statement of employment terms within the first two months of the job start date. Contracts generally outline salary, work hours, holidays, and other essential conditions.

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Probation Period

Employment contracts may include a probationary period with the option to extend it. While on probation, employees are not protected by unfair dismissal laws unless they have over a year of service or were dismissed due to trade union activities, pregnancy, or related issues.

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Working Hours

The maximum working week in Ireland is 48 hours, averaged over four months. Employers are not required by law to pay for overtime unless specified in the contract. In some sectors, collective agreements may enforce overtime pay at higher rates than regular hours.

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Vacation Days

Under the Organisation of Working Time Act 1997, employees are entitled to 4 weeks of paid annual leave. However, contracts may grant additional leave. Employers and employees may also agree to extra leave entitlements.

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Sick Leave

Irish employment law does not mandate paid sick leave, making it subject to the employer's discretion. Employers must specify their sick leave policy in the employee’s contract. Employees may apply for Illness Benefit from the Department of Employment Affairs and Social Protection if they have sufficient social insurance contributions.

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Wages and Salary Payment

Salaries are generally paid on a weekly or monthly basis, with the payment deadline typically set as the last day of the month. Since 1 January 2024, the national minimum wage is €12.70 per hour.

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Public Holidays

Ireland recognizes 10 public holidays, including:

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• January 1: New Year's Day
• March 17: St. Patrick’s Day
• Easter Monday
• May Day: First Monday in May
• Christmas Day
• St. Stephen's Day

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Employer Taxes

Employers in Ireland contribute to Pay-Related Social Insurance (PRSI), with rates as follows:

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• Class A1: 11.05%
• 8.8% applies if earnings are below €398 per week

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Employee Taxes

Employees are subject to income tax rates of 20% on income up to €35,300 and 40% on income above this threshold. Additional contributions include:

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• PRSI: 4%
• Universal Social Charge: Variable rates based on income

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Notice Period

Notice requirements depend on the employee’s length of service:

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• 13 weeks to 2 years: 1 week
• 2 to 5 years: 2 weeks
• 5 to 10 years: 4 weeks
• Over 15 years: 8 weeks

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Employees with less than 13 weeks of service or without a specific contract term are not required to provide notice upon resignation.

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Termination and Severance Pay

In redundancy situations, employees may be entitled to a lump-sum redundancy payment based on years of service. Eligible employees receive 2 weeks' pay for each year worked, plus an additional 1 week’s pay. The redundancy payment is tax-free and capped at €600 per week.