Employment Law Regime
Irish employment law is primarily governed by a series of Acts, regulations, and case law. These laws cover a wide range of topics including hiring, termination, discrimination, and working conditions. The primary employment law legislation in Ireland is the Employment Equality Acts 1998-2015, the Unfair Dismissals Acts 1977-2015, and the Organisation of Working Time Act 1997.
Employment Classification
In Ireland, employees are broadly categorized as either:
Employees covered by the Protection of Employment Act (PEA).
Employees not covered by the PEA.
An employee who is covered by the PEA is someone who has been in continuous employment with the same employer for one year or more. An employee who is not covered by the PEA is an employee who has not completed one year of continuous employment with the same employer.
Employment Contracts
In Ireland, an employment contract may be either verbal or in writing. However, the Terms of Employment (Information) Act 1994 requires employers to provide certain information in writing to their employees within two months of their start date. This information includes the names of the employer and employee, the job title, pay and hours of work, and notice periods.
Fixed-term employees must be given a written contract of employment, which should include the duration of the employment and the date on which it is to end. The contract must also state the reasons for the fixed-term nature of the employment.
Employees are entitled to a minimum notice period in the event of dismissal, which varies depending on the length of their service. The minimum notice period ranges from one week to eight weeks, depending on the length of service.
Holiday’s in Ireland
There are nine public holidays in Ireland, which are:
New Year’s Day – January 1
Easter Monday
First Monday in May
First Monday in June
First Monday in August
Last Monday in October
Christmas Day – December 25
St. Stephen’s Day – December 26
The first platform dedicated to streamlining Ireland entity setup and management.
Termination of Employment
Notice Period
Employees who have been continuously employed for one month or more are entitled to notice of termination of employment. The notice period varies depending on the length of service and ranges from one week to eight weeks.
Severance Benefits
Employees who have been continuously employed for two years or more are entitled to a statutory redundancy payment. The amount of the payment is based on the employee’s age, length of service, and weekly pay, up to a maximum of €600 per week.
Pension
Employers in Ireland are required to provide their employees with access to a pension scheme. This can be a defined benefit scheme, a defined contribution scheme, or a personal retirement savings account (PRSA).
Under the Pensions Act 1990, employers are required to automatically enroll eligible employees in a pension scheme, unless the employee opts out.
Seeking expert assistance with end to end entity setup execution? Explore our managed entity setup services.