Thanks to the low corporate tax rate, highly skilled workforce, and easy access to other European markets that it offers, Ireland has become a popular destination choice for many global businesses looking to expand into new territories1. However, while it can be easy to focus on the benefits, Ireland has key legal and cultural differences that, if not considered, could put the success of your expansion at risk.
In this article in our Expanding to Ireland series, our HR Generalist in Ireland, Craig McCarthy, explores the key HR and people legislation that your business will need to abide by in Ireland, along with the basic rights and entitlements that your employees in Ireland have.
Key takeaways
- Learn the key differences in employment law between Ireland and the US
- Understand your core HR and people obligations in Ireland
- Discover what extra HR support you can offer to be an employer of choice in Ireland
Looking after your most important asset – your people
As your most important asset and the driving force for your business’ success, looking after your people and upholding your commitment to them should be paramount no matter where your business operates. However, while this commitment fundamentally remains the same across the globe, how you fulfil it, the steps you need to take, and the laws you need to abide by may look different from country to country.
In this article, we’ll walk you through how to ensure that your terms of employment in Ireland are legal and fair in the eyes of local law, as well as the ins and outs of your key HR obligations throughout the employee lifecycle.
1. The essentials
When setting up in Ireland, it’s vital to know employment rights that the local people will be entitled to. While the two countries may seem similar, the idea that employment law is identical – or even similar – between the US and Ireland, and that your HR and people strategy will look exactly the same in both countries, could be a costly assumption to make. There are a number of key considerations to bear in mind, including:
Time: The Organisation of Working Time Act 1997 states employees must not be contracted to work more than 48 hours a week on average over a 17-week period, or 8 hours a day. The 48 hours of work do not include time spent on annual leave, sick leave, maternity leave, adoptive leave, parental leave, carer's leave or force majeure leave. There are further exceptions which can be found following the link below.2
Dismissals: Irish law (Unfair Dismissals Act) states that specific and valid reasons must be given for letting employees go, related to either conduct (the employee has broken the law or done something otherwise unacceptable), capability (employee is unqualified or unable to fill role requirements) or redundancy (the role is no longer needed)3.
Discrimination and bullying: Under the Employment Equality Acts, employers can be held liable for any discrimination in a wide range of employment-related areas, such as:
- Equal pay
- Recruitment, promotions, or dismissals
- Training and work experience
- T&Cs of employment
- Classification of posts
- Collective agreements4
Statutory annual leave entitlement (Paid Time Off): Most workers who work a 5-day week are entitled to 4 weeks of annual leave each year, as is set out in the Organisation of Working Time Act 1997. However, it’s not uncommon for an employer to offer more holiday than the legal minimum to help attract, retain, and reward the best talent.
2. Pay
You will also need to familiarise yourself with the complex laws surrounding how you pay your people:
Minimum wage: Ireland has a legally mandated employee minimum wage, which differs depending on employee age
Tax codes and laws: Tax codes dictate how much tax is taken out of your people’s salary
Pay slips: These can be paper or digital, and must include gross pay, net pay, any deductions and a breakdown of how the wages will be paid if more than one payment method is used.5
Withholding pay: Similar to dismissals, employees are understandably heavily protected around areas of pay and compensation, but organisations can pro-actively protect themselves appropriately too, if necessary
3. Recruitment
Essentially, it’s largely up to you how you recruit for your organisation. However, there are certain laws and processes that encourage fair recruitment practices, specifically relating to areas like equality, diversity and data protection.
Discrimination law
From writing a job advertisement all the way through to onboarding new hires, Irish law (Employment Equality Acts) states that applicants with certain protected characteristics cannot be discriminated against at any point throughout the recruitment process. These characteristics include:
- Age
- Gender or gender reassignment
- Disability
- Marriage and civil partnership
- Pregnancy and maternity
- Race, religion or belief
- Sex or sexual orientation
- Members of the Traveller community
Data protection
Under the GDPR, an employer can only process the personal data of employees and applicants under certain conditions; the purpose of the data should be specified to the candidate and only the necessary amount of data should be stored.6
Work permits and visas
If hiring citizens outside of the EEA, Switzerland and the UK, familiarise yourself with the visa and work permit requirements, and do all necessary checks to ensure your employees have a right to live and work in Ireland. It is a criminal offence to knowingly employ a person aged 16 or over who does not have permission to live and work in Ireland, which can lead to fines or imprisonment.7
4. Extra support
Once you have ensured that you stay on top of all key employment, tax and payment laws, your work shouldn’t end there. Your HR teams or supplier should be perfectly placed to offer support to your people throughout the entire employee lifecycle, and the benefits of doing so go beyond simply keeping your people happy. You may want to consider:
Recruitment: Optimising the package you offer to potential candidates, identifying who you want to recruit and how to appeal to them
Development: Offering professional development and coaching to your people of all levels
Outplacement: Supporting those going through redundancy to help them find a new role
Expanding into Ireland: a guide for US-headquartered companies
On the surface it may appear that the US and Ireland may have many similarities, however, if you assume that your business operations in both countries will look the same, your success may be less likely. That’s why our specialists in Ireland wrote this guide to act as your insight into employee compliance, common practices and operating in the Irish market.
By exploring the fundamental areas of employee benefits, HR and people, health and safety, and insurance, this guide will:
- Help you understand and navigate the main Irish employment laws
- Outline how your Irish and US operations will need to differ for your employees
- Show you how to compete and be a leader in your sector in Ireland
Author
Craig McCarthy, HR Generalist
With nearly 10 years of experience, Craig is a skilled Human Resources Generalist specialising in employee relations, talent acquisition, and compliance. He excels in supporting organisational growth through effective HR strategies and employee development programs.