Recruiting Top Talent in Ireland

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Irish Top Talent

Hiring the right talent in Ireland to expand your company can result in a thriving business with numerous opportunities. However, the recruitment process can be complicated when you have no physical presence in Ireland yet. Our PEO and EOR service can be the solution for your company.

The Recruitment Process in Ireland

If you are expanding your business into Ireland, establishing a legal entity in the country is not required to hire new employees – although you will need a legal entity in-country to operate payroll. However, the first step is recruitment, and it is vital to know where to locate the best talent who will be a ‘perfect fit’ for your company’s activities.

The answers do not come easily – and once the right employee is found, employers must follow strict registration procedures. These include:

  • Registering for Employment Taxes (PREM) with the Revenue Commissioners (the ‘Revenue’) by completing Form TR2 and submitting to the local Revenue Registration Unit for the relevant location
  • Completing Form TR2 (FT) to obtain PREM tax registration for non-resident companies with no physical presence in Ireland
  • Ensuring tax liability is reported to the Revenue on or before employees are paid, and due payments are made by the 23rd of the following month
  • Registering with the Social Insurance Fund for Pay Related Social Insurance (PRSI) deductions for employees and the Universal Social Charge (USC)
  • Creating employment contracts / statements for new staff, which must be signed by the employer though not necessarily by the employee. There is no legal requirement for a ‘formal contract’
  • Apply for employees’ permits and visas if required
  • Apply for employees’ special expatriation status if applicable
  • Calculate employees’ monthly salaries and provide their pay slips
  • Research any available tax-free allowances or benefits
  • Submit employees’ and employers’ wage tax returns and social insurance forms
  • Correspond with the applicable national authorities regarding payroll changes and payments

Create a payment schedule for wage tax, social insurances, and net wages

Legal Checks on Employees in Ireland

Pre-employment screening checks in Ireland are influenced by the Irish Constitution, the Workplace Relations Commission, the Data Protection Acts and the Europe-wide General Data Protection Regulation (GDPR):

  • Discrimination: The Employment Equality Act (that is reinforced across the EEA) prohibits employee discrimination that takes place on the grounds of gender, civil and family status, race, sexual orientation, religion, disability, and age.
  • Sanctions: If an employer breaches the EEA in pre-screening, they risk a €13,000 (US$15,430) fine. If they breach these restrictions during employment, they face paying two years’ remuneration or €40,000 (US$47,470), whichever is greater.
  • Privacy: Employers should collect information only relevant to the advertised position.
  • Health: Medical history should be requested only after a job offer and with the candidate’s permission.
  • Background: Generally, criminal record checks can be made only for working with children, vulnerable adults or in security roles.
  • Social Media: Under regulations from GDPR and the Data Protection Commissioner, employers should acquire information from social media that is relevant to the position. The Data Protection Office advises that information on an unsuccessful candidate should be kept no more than 12 months.
  • Employment History: References and CVs can be checked with the candidate’s permission.
  • Eligibility to Work: Employers should verify candidates have all applicable permits and visas if necessary.
  • Credit History: Under the Fitness and Probity Act these should be carried out for positions in financial services.

Basic Facts on Hiring in Ireland

  • Employers’ interview questions should be restricted to the job being applied for and follow guidelines from the Workplace Relations Commission, the Data Protection Acts, the Europe-wide General Data Protection Regulation (GDPR) and the Employment Equality Acts (EEA).
  • Terms and conditions of employment come under the Irish Companies Act, the Department of Social Protection for Pay Related Social Insurance (PRSI), the Organization of Working Time Act, the Maternity Protection Act, the Protection of Employment and Unfair Dismissals Act and the regulations of the Revenue Commissioners.
  • Although there is no legal requirement for a formal written contract, employers must at least provide a written statement of the employment terms and conditions within five days of the employee starting work.
  • Under the Employment (Miscellaneous) Provisions Act, the contract or statement must include the ‘core’ items of names and addresses of employer and employee; contract duration in the case of fixed-term or temporary agreements; the method of calculating pay and payment schedule; expectation of normal working hours and working week. This must be supplied within five days of the employee starting work, with full terms supplied within two months.
  • Employees must be registered for employment taxes (PREM) with their local Revenue Registration Unit and with the Department of Social Protection for Pay Related Social Insurance (PRSI).
  • The National Minimum Wage Act stipulates a 2021 minimum for those over 20 years of age of €10.20 (US$12.10) per hour. For a full-time worker this equates to €20,685 per year (US$24,563), €1,723 (US$2,946) per month and €397.80 (US$472.38) per week.
  • Employers withhold employees’ wage tax and social insurance contributions and remit them to the relevant bodies.
  • Working hours should not exceed 48 per week, including overtime, averaged over four months for most employees.
  • Overtime is not covered by statute and is dealt with in contracts between employers and their workforce.
  • Maternity leave is 26 weeks for full-time and part-time employees, usually 10 weeks before birth and 16 post-natal. Benefits are €245 (US$290) per week. To be eligible for these benefits, claimants should have paid at least 39 weeks of PRSI in the 12 months before the due birth date. Paternity leave is two weeks with no legal provision for benefit.
  • Paid vacations are a minimum of four weeks per year, generally based on a ‘year leave’ between April 1 and March 31. Individual contracts can allow for more weeks, with vacation pay made in advance.
  • Notice periods depend on length of service, ranging from one week for up to two years’ service and eight weeks for over 15 years’ employment.