Ireland

Contract Types
Fixed Term, Indefinite, Full-time, Part-time.

Probation
The maximum probation period is 6 months but typically between 3 and 6 months is given. This can be extended to a total maximum of 12 months if the contract allows.

Working Hours
39hours per week with a maximum average of 48 hours over 4 months.

Overtime
Overtime pay is not a statutory obligation but must be agreed in the contract. Employers must provide additional compensation to employees working on Sundays, which must be a reasonable amount; 150% is often given.

Other Financial
No 13th month salary, however, performance-based bonuses (monetary or shares) are common. Employers must provide the ability for employees to contribute to a pension scheme (Personal Retirement Savings Account – PRSA) and facilitate payments and tax deductions through payroll. Employers do not need to contribute but they must either offer a scheme or let the employee set up their own and allow time off for meetings and paperwork.

Other
Monthly salaries, paid at least before the last day of the month.

Corporation Tax 2024

Trading corporation 12.5%

Non-Trading corporation 25%

 Consumption Tax: 23%

 Employers’ Social Security: 11.05%

11.15% from October 2024

Employees’ Contributions: 4%

4.1% from October 2024

Income Tax Rates

Lower rate 0-40,000 – 20%

Comment

Thresholds are increased for married couples and those with children

Universal Social Charge: 0.5 – 8%

Notice

The notice period rises with tenure:

• 7 days for 13 weeks to 2 years’ service
• 14 days for 2 to 5 years’ service
• 28 days for 5 to 10 years’ service
• 42 days for 10 to 15 years’ service etc
• 56 days for over 15 years’ service

Payments can be made in lieu of notice; and this payment must be taxed through payroll as normal.

Process

Dismissal has to be justified on the basis of the employee’s competence, capability, or conduct, with substantial grounds justifying the dismissal. The employer should notify the employee of the dissatisfaction and afford them the opportunity to improve. Minimum statutory notice periods apply to all employees who have completed a minimum of 13 weeks of continuous service. No severance pay is payable. Should the employee take the case to court for unfair dismissal and consequent financial loss, then the maximum they can be awarded is 2 years’ salary.

Severance Pay

After 2 years’ service, 2 weeks’ statutory redundancy pay is paid for every year of service, plus a bonus week. Such payments are tax free below Euro 600 per week. In practice most employers would give more generous terms.

National Public Holidays: 10

January 1st – 1st January, Day Given in Lieu

St Brigid’s Day – 5th February, Day Given in Lieu

Patricks Day – 17th h March, Day Given in Lieu

Easter Monday – 1st April

May Day (First Monday in May) – 7th May

June Bank Holiday (First Monday in June) – 3rd June

August Bank Holiday (First Monday in August) – 5th August

October Bank Holiday (Last Mon­day in October) – 28th October

Christmas Day – 25th December, Day Given in Lieu

St Stephen’s Day – 26th December, Day Given in Lieu

Comment       

Employees do not have an automatic legal entitlement to have the next working day off, however, they are entitled to a paid day off within a month of the public holiday, an additional day of annual leave, or an additional day’s pay but in practice a day in lieu is given on the following Monday.

All leave entitlement based on 5 day working week. Public holidays falling on Sunday not included. Number of days quoted are working days unless stated otherwise.

Paid legal entitlement (working days)

20 days is the statutory minimum but many employers will give more, typically 25 days.

Carry over permitted

Allowed if agreed upon between employer and employee.

Timings

The employer may decide when annual leave is taken.

Payment in lieu allowed

Only permitted on cessation of employment.

Sick

Employees with 13 weeks’ service are entitled to 5 days’ sick pay per year on production of a medical certificate. This will rise to 7 days in 2025 and 10 days in 2026. Sick pay is paid by employers at 70% of salary up to a daily maximum of Euro 110. After 3 days, employees may be entitled to payment from Social security.

Maternity

New mothers can take 26 weeks of maternity leave and 16 weeks of additional unpaid leave immediately after the end of maternity leave. Mothers must take 2 weeks before the due date (starting on the Monday the week before the due date at the latest) and 4 weeks after. Standard maternity pay is Euro 274 per week paid by Social Security. To receive benefits, employees must have contributed at least 39 weeks of social security (PRSI) paid in the previous 12-month period or at least 39 weeks in the relevant tax year. 26 weeks’ leave is also available in the case of a miscarriage or stillbirth after the 24th week.

Paternity

Entitled to 2 weeks’ paid paternity leave starting within the first 6 months post birth or adoption which is paid by Social Security.

Parental

Parent’s Leave is available to those with a child under 2 and is available for 7 weeks, paid by Social Security. Parents of children aged 12 years or younger are additionally entitled to 26 weeks of unpaid parental leave.

Study

There is no legal provision for study leave; it must be agreed with employer or included in the contract.

Bereavement

It is common practice to give 3 days’ leave for the death of a family member.

Carer’s Leave

Carer’s leave of between 13 and 104 weeks is available to care for family or friends who require full time care. The leave is unpaid.

Domestic Violence

Those who have suffered from domestic violence can take up to 5 days leave per year which can be used for a variety of purposes such as counselling or relocation. The leave is paid by the employer at a government prescribed rate.

Jury Service

Job protected unpaid leave must be given for jury service.

Medical

The Irish health system is largely free at the point of delivery and is of a good standard. However, waiting lists can be long and dental is chargeable. Private medical insurance (which is a taxable benefit) is often provided by employers. Large employers provide group plans, whilst individual policies are normally sourced online and are often funded by means of an allowance.

Life

Group life plans are often provided with a typical death benefit of 3 to 4 years’ salary.

Pension

Employers must give their employees the opportunity to contribute to a Personal Retirement Savings Plan, though they are not obliged to contribute. Many will match contributions up to 5%.