Empowering growth: Navigating Ireland's dynamic business landscape

Expanding your business to Ireland opens up a world of opportunities, supported by the country's robust labour law principles. Irish employment laws are widely recognized for their strong emphasis on social-, income-, and labour protection, ensuring a secure and supportive work environment for employees. Embracing these employee-friendly measures fosters a sense of loyalty and dedication among your workforce, ultimately leading to a more engaged and motivated team.

The focus on social security also contributes to the overall well-being of your employees, promoting a healthier work-life balance and enhancing their overall quality of life. As you embark on this exciting journey, you can be confident that Ireland's labour laws encourage a harmonious relationship between employers and employees, nurturing a positive and inclusive workplace culture.

By complying with these regulations and understanding their importance, your company can attract top talent and establish a strong presence in Ireland's thriving business landscape. Together, let's work towards building a brighter future for your business and cultivating a fulfilling work environment for your team in this dynamic and welcoming nation.

Want to have more information on the Irish labour law? We gathered all information about labour conditions, social security, contract types, probation/notice periods, and terminations for you.?Download our?Relevant Workings on Irish Labour Law.

Minimum wage

From January 1st, 2023, the national minimum wage is EUR 11.30 gross/hour. Different rates apply for employees under the age of 20:

• Aged 20 and over: EUR 11.30
• Aged 19: EUR 10.17
• Aged 18: EUR 9.04
• Aged under 18: EUR 7.91

Working hours

The maximum average working week cannot exceed 48 hours. For most employees the average is calculated over period of 4 months with exemptions e.g. in the security

industry, hospitals or alike. There is no statutory obligation for the employer to pay employees for overtime.

Paid annual leave

Employees are entitled to a minimum of 20 days paid leave per year. Annual leave is prorated for employees working part-time. It is for the employer to decide when annual leave may be taken, but this is subject to a number of conditions.

The following points are applicable:

• Remaining statutory leave can be transferred to the following year, up until the end of June.
• After working for 8 consecutive months, the employee is entitled to paid leave for an unbroken period of two weeks.
• During any given year of employment, the entitlement is accrued on a pro rata basis, being 1/12th of the annual entitlement, starting on the first day of each month and rounded up to the nearest half day.

Sick leave

As from 2023, employees in Ireland have the right to be paid for a few days while they are at sick leave. Employers will be required to provide Statutory Sick Pay to employees under proposed legislations, the Sick Leave Bill 2021. The sick pay scheme will be phased in over a four-year period:

• 2023: 3 days of sick pay
• 2024: 5 days of sick pay
• 2025: 7 days of sick pay
• 2026: 10 days of sick pay

Sick pay will be paid at a rate of 70% of an employee’s wage, subject to a daily threshold of EUR 110.

Social Insurance

The social insurance contribution most employees in Ireland make is called Pay Related Social Insurance (PRSI) and is, like the name states, dependent on the income, but also on the type of work an employee is performing. Employees are assigned to a PRSI subclass which defines the contributions on the employee/employer side as well as the benefits an employee is eligible for.

Healthcare:?Whilst contributing to PRSI an employee is entitled to the Irish Public Health Care System. While the general quality of healthcare in Ireland is good, being insured with the public system means long waiting times, limited range of doctors and costs are at the employee. For this reason, many Irish employees choose a Private Health Insurance, which offers a more rapid access to treatments and a wider choice in doctors and hospitals.

Pension:?In general, there are three different types of pension schemes in Ireland, two of which are state pensions (contributory & non-contributory) and one scheme is provided by the employer, the occupational pension scheme. There’s no legal obligation on employers to provideoccupational pension schemes. However, if the employer doesn’t have an occupationalpension scheme, the employer is obliged to provide the employee with access to a so-called Personal Retirement Savings Account scheme, or PRSA scheme. Even if theemployer does not contribute, an employee is able to set-up a contract with a PRSA provider.

Childcare leave:?Next to maternity, paternity and parental leave, which are explained below, employees in Ireland can also make use of ‘adoptive leave’ and ‘parent’s leave’. Adoptive leave gives 24 weeks’ leave off work to one parent of the adopting couple or a parent who is adopting alone. Leave starts from the date the child is placed in care of the employee. Parent’s leave entitles each parent to 7 weeks’ leave durint the first 2 years of a child’s life, or in the case of adoption, within 2 years of placement of the child. For both types of leave, the employer doesn’t have to pay, although some employers may top-up.

If you have any questions or want to know more about the Irish law.?Contact our experts, who are always happy to answer your questions about the Irish labour principles.