Your guide to Employer of Record (EOR) in Ireland

Expanding into Ireland opens the door to a skilled workforce and a thriving business environment, but navigating local employment laws can be a challenge. An Employer of Record (EOR) enables you to hire employees in Ireland without setting up a local legal entity. In this FAQ, we will explain how EOR services work, when they’re the right solution, and what to expect when hiring in Ireland through an EOR.

How EOR works: Key questions answered

1. What is an Employer of Record (EOR)?
An Employer of Record is a third-party organization that legally employs staff on behalf of your company in a specific country. While your business manages the employee’s daily tasks and performance, the EOR handles all employment-related responsibilities, such as contracts, payroll, taxes, and compliance with local labor laws. This allows you to hire in countries where you don’t have a legal entity.

2. When should a company consider using an EOR?
An EOR is especially useful when:

• You want to hire talent in a country where you don’t have a local entity.
• You need to hire quickly without going through a long and complex company registration process.
• You want to ensure compliance with local employment laws and tax regulations.
• You’re testing a new market before making a long-term investment.
• You need temporary or project-based hires abroad.

3. What are the benefits of using an EOR?

• Full compliance with local labor laws and tax requirements.
• Faster hiring timelines compared to setting up your own entity.
• Reduced administrative workload for HR and payroll.
• Lower costs and risks compared to establishing a company abroad.
• Access to local HR expertise and guidance.

4. What is the difference between an EOR and a staffing agency / PEO / payroll provider?

• Staffing agency: Focuses on recruiting and placing candidates, often for short-term or temporary roles, but usually does not act as the legal employer.
• PEO (Professional Employer Organization): Offers HR outsourcing services but typically requires you to have your own legal entity in the country.
• Payroll provider: Manages salary payments and related administration but does not take on the legal employer role.
• EOR: Legally employs the worker on your behalf, handling all compliance, contracts, and payroll, so you don’t need a local entity.

5. Who is the legal employer when using an EOR?
The EOR is the legal employer on paper and is responsible for contracts, payroll, and compliance. However, you remain in control of the employee’s day-to-day work, goals, and performance.

6. Is the employee on our payroll or the EOR’s payroll?
The employee is on the EOR’s payroll. The EOR processes salary payments, handles tax deductions, and ensures all statutory contributions are made according to local laws.

7. Can we hire both local nationals and foreign employees through EOR?
Yes. EOR services can cover both local nationals and foreign employees. For foreign hires, additional visa or work permit requirements apply, and the EOR can often support with the application process.

Hiring in Ireland through an EOR

1. Can a foreign company hire employees in Ireland without setting up a legal entity?

Yes! You don’t need to set up your own legal entity to hire in Ireland. By working with an Employer of Record (EOR), you can hire talent locally while the EOR takes care of all the legal and administrative tasks, like contracts, payroll, and taxes. This way, you get your team up and running quickly and compliantly, while you stay focused on managing their work and growth.

2. What type of employment contracts do you offer under EOR in Ireland?

We provide indefinite (permanent) and fixed-term employment contracts under Irish labor law. Permanent contracts are the most common and stable type, while fixed-term contracts can be used when there is a clear and objective justification, such as a temporary project or to cover an absence.

All employment contracts are drafted in English. This ensures clarity and transparency for both the employee and the client.

A probation period of up to 6 months can be established. In exceptional circumstances, this may be extended by a further 6 months, to a maximum of 12 months in total. The probation period must always be clearly defined in the employment contract.

With Parakar as your EOR partner in Ireland, you can be sure every contract is fully compliant and tailored to your specific hiring needs.

3. What are the standard working hours and overtime rules in Ireland?

The standard working week is designed to balance productivity and well-being. The maximum average working week is 48 hours, typically calculated over a 4-month period. Certain industries, such as security or healthcare, may have specific exemptions.

While there is no legal requirement to pay overtime, many employers choose to offer additional compensation or time off for extra hours worked, depending on company policy.

With Parakar as your EOR partner, you can ensure all working hours, pay rates, and compliance requirements are fully respected, keeping your employees happy and your business safe.

4. What is the minimum wage in Ireland?

As of January 1, 2025, the national minimum wage in Ireland is:

• €13.50/hour for employees aged 20 and over
• €12.15/hour for employees aged 19
• €10.80/hour for employees aged 18
• €9.00/hour for employees under 18

Certain industries or roles may have specific rates or allowances, but these figures represent the standard national minimum.

5. How is paid time off (PTO) handled under EOR in Ireland?

With Parakar as your EOR, all leave and sick pay entitlements are fully managed and compliant, making it simple for you to support your team while staying legally covered.

Employees receive 20 days of paid annual leave per year as the statutory minimum, prorated for part-time workers. Any unused leave can generally be carried over until the end of June the following year.

Employees also benefit from 10 public holidays, including St. Patrick’s Day, Christmas, and New Year’s Day.

Sick leave is gradually being phased in under the Sick Leave Act 2022. By 2025, employees are entitled to 7 days paid sick leave, increasing to 10 days in 2026, at 70% of their daily wage (capped). Employees must have worked for 13 weeks and provide a medical certificate to claim statutory sick pay.

6. What are the rules around termination and notice periods in Ireland?

Notice periods vary depending on the employee’s length of service:

• 13 weeks to 2 years: 1 week notice
• 2 to 5 years: 2 weeks notice
• 5 to 10 years: 4 weeks notice
• 10 to 15 years: 6 weeks notice
• 15 years and above: 8 weeks notice

After 52 weeks of continuous employment, a dismissal can only take place for substantial reasons, such as personal issues, performance, conduct, redundancy, or other significant grounds. The dismissed employee has the right to challenge the dismissal with the Workplace Relations Commission if they believe it was unfair.

Every termination case is unique and should be carefully analyzed to ensure compliance with Irish law and to avoid potential unfair dismissal claims. With Parakar as your EOR partner, we help ensure that all termination and notice procedures are fully compliant, giving you peace of mind while treating employees fairly.

7. Can you hire contractors or freelancers through EOR in Ireland?

Through Parakar’s EOR solution in Ireland, we primarily handle full-time employees under local employment law. Hiring contractors or freelancers is outside the standard EOR scope, as these roles involve different legal and tax obligations.

If you need to engage contractors or freelancers, it’s best to analyze each case individually to ensure compliance with Irish regulations. Parakar can provide guidance on the best approach for your specific situation

8. Are there any country-specific compliance requirements for onboarding?

Yes! Onboarding in Ireland requires adherence to local employment and tax laws. A specific requirement is that every employee must have a valid document to work in Ireland and a PPS number (Personal Public Service number). This ensures that employees are fully authorized to work and that all contributions and taxes are correctly processed.

Through Parakar’s EOR service, every employee is fully compliant from day one, giving you peace of mind and letting you focus on managing your team rather than paperwork.

9. How long does onboarding typically take via EOR in Ireland?

Onboarding with Parakar in Ireland is fast and efficient. If the employee has all their documents in order, including the right to work and a PPS number, the process can usually be completed within one week.

Our EOR service takes care of contracts, payroll setup, and compliance, so your new hire is ready to start quickly and smoothly, while you stay focused on managing your team.

10. Are there limitations on what roles or industries can be hired via EOR in Ireland?

No, there are generally no limitations on the roles or industries you can hire through Parakar’s EOR in Ireland. You can hire across a wide range of positions and sectors without restrictions.

11. Can you support local benefits and immigration in Ireland?

Yes! Through Parakar, we can offer health insurance via the Vhi provider.

We also provide migration support services to help employees with work permits, ensuring a smooth start in Ireland.

Need EOR support in Ireland?

Whether you are bringing on your first employee in Ireland or scaling up your existing team, Parakar is ready to help. As your local Employer of Record, we manage employment contracts, payroll, compliance, and HR administration, so you can concentrate on building your business in the Irish market.

Contact us to find out how we can help you achieve your hiring goals in Ireland.