Employer of Record Ireland

Employee is employed by you and paid by you from your overseas Company

Pros: Seems like it would be the cheapest and easiest option.

Cons: Unable to pay the legally required social security contributions, and the employee will be employed according to Irish employment law.

Using an Employer of Record

Pros: The Employer of Record Ireland will take care of all payroll, HR and compliance issues. An Employer of Record will be the cheapest option in time and money where an employee/employer relationship is established, and there are less than 15 employees.

Cons: Expensive when hiring over 15 employees. Knowing which Employer of Record provider to choose can be difficult.

Entity Setup

Pros: For large numbers of employees (circa 15+), this may be the most cost effective option.

Cons: Setting up an entity and ensuring you always adhere to employment and tax law is very expensive and time consuming. Too expensive when hiring less than around 15 employees.

Hire a Contractor in Ireland

Pros: Is an easy and cost effective solution if the worker isn’t working solely for one company, and can send another worker to do their work on days they don’t work.

Cons: It is illegal to engage a full-time workers who will work solely for one company. This would be misclassification, and implications of being caught range from fines to criminal charges.

Yes, as long as the worker is working for other companies, is able to decide how to do their own work, and can send another contractor in their absence.

If the worker is required to work only for one company, and the company decides the duties and tasks of the worker, then they will need to be an employee otherwise the company is likely to be in breach of Irish employment laws.

Your company is likely to be fined, required to pay holiday pay to the employee, be required to pay social security contributions, and be required to open a permanent establishment in Ireland. You may also be sued by the employee for breaching their employment rights.

You will need to register your company at the Companies Registration Office, and provide notarised documents to the relevant authorities. If the registered company owner is a non-Irish national, you will need to pay an annual non-resident director bond of circa EUR 1,800 per annum.

Although the initial set-up is relatively straight forward, you must have a physical office to register for tax. Virtual mailing offices are looked upon unfavourably by the Irish tax authorities and they are aware of the addresses of these services. You must also have the relevant software to be able to calculate and run payroll in Ireland, and make the necessary submissions to the Irish tax authorities.

Hiring employees in Ireland comes with specific legal responsibilities. HR compliance simply means making sure your company follows all the rules and regulations regarding employment and work practices.

But why is it so important? Compliance isn’t just about ticking boxes; it’s about protecting your employees and your business. By following the law, you ensure your employees receive fair treatment, from sick leave benefits and annual leave to minimum wage and proper working hours. This not only fosters a positive work environment but also minimizes your risk of facing fines, penalties, or even lawsuits for non-compliance.

Irish employment law fully protects employees hired through an Employer of Record (EOR). They receive a legally compliant local contract, statutory benefits including maternity leave, annual leave, and illness payments, along with relevant tax credits. Additionally, all Ireland-based employees have access to public healthcare through the Health Service Executive (HSE).

Agility EOR takes care of your HR compliance headaches. Here’s how:

Trusted Partners: We team up with top employment lawyers and advisors in Ireland, ensuring your contracts and documents meet all local requirements.

In-Depth Knowledge: We stay updated on complex topics like payroll, social security, data privacy, notice periods, and remote work regulations.

Swift Action: If an issue arises, our internal team immediately contacts our Irish experts for prompt resolution.

Irish employment law fully protects employees hired through an Employer of Record (EOR). They receive a legally compliant local contract, statutory benefits including maternity leave, annual leave, and illness payments, along with relevant tax credits. Additionally, all Ireland-based employees have access to public healthcare through the Health Service Executive (HSE).

In Ireland, both employers and employees contribute to the social and tax system.

• Employers: Pay-related social insurance (PRSI) contributions.
• Employees: Income tax, Universal Social Charge (USC), and Pay-related social insurance (PRSI).

Irish employment law fully protects employees hired through an Employer of Record (EOR). They receive a legally compliant local contract, statutory benefits including maternity leave, annual leave, and illness payments, along with relevant tax credits. Additionally, all Ireland-based employees have access to public healthcare through the Health Service Executive (HSE).