Irish Employment Law for International Employers (2025)
Irish employment law is comprehensive, employee-friendly, and significantly different from UK and US employment frameworks. As of January 2025, the national minimum wage is €13.50 per hour, statutory sick leave remains at 5 days, and each parent is entitled to 9 weeks’ leave during the first 2 years of a child’s life.
The Workplace Relations Commission (WRC) serves as Ireland’s primary enforcement body for employment rights, established under the Workplace Relations Act 2015. The WRC handles disputes relating to redundancy, unfair dismissal, minimum notice, minimum wage, hours of work, and leave entitlements. Most WRC hearings are now held in public, and decisions are published on their website.
Recent legislative changes (2024-2025): Statutory sick leave increased from 3 days to 5 days in January 2024, though the planned increase to 7 days in 2025 has been postponed. Parent’s leave increased from 7 weeks to 9 weeks in August 2024.
Irish Employment Contracts: What’s Legally Required
Employers in Ireland must provide employees with a written statement of core terms within 5 days of starting work, and additional terms within 1 month.
The “Section 5” Statement (Day 5 Requirements):
- Full names of employer and employee
- Address of the employer and place of work
- Job title or nature of work
- Date of commencement
- Expected duration (if temporary) or end date (if fixed-term)
- Rate of pay and method of calculation
- Pay intervals (weekly, monthly, etc.)
Additional terms (within 1 month): Normal working hours, annual leave entitlement, sick leave provisions, notice periods, pension arrangements, and grievance/disciplinary procedures (within 28 days).
Probation periods: Cannot exceed 6 months in the private sector except in exceptional circumstances (maximum 12 months total), and must be in the employee’s interest.
Fixed-term contracts: You cannot keep employees on successive fixed-term contracts for more than 4 years unless there are objective grounds. After 4 years, the contract automatically becomes permanent.
The WRC can award up to four weeks’ pay for failure to provide a statement of terms, with serious errors or complete failure resulting in maximum awards.
Key Statutory Minimums in Ireland (2025)
Requirement |
Minimum Entitlement |
Notes |
|---|---|---|
| Minimum wage | €13.50/hour (age 20+) | Increasing to €14.15 in January 2026 |
| Annual leave | 4 weeks (20 days for 5-day week) | Public holidays are separate |
| Public holidays | 10 days | Additional to annual leave |
| Statutory sick leave | 5 days paid (2025) | 70% of pay, max €110/day |
| Maternity leave | 26 weeks + 16 optional | 26 paid via social welfare |
| Paternity leave | 2 weeks | Must be taken within 6 months |
| Parent’s leave | 9 weeks per parent | Increased from 7 weeks in Aug 2024 |
Working Time and Holiday Entitlements
The Organisation of Working Time Act 1997 sets maximum working hours and minimum rest periods. The maximum average working week is 48 hours (averaged over 4 months), and employees are entitled to at least 11 consecutive hours’ rest in each 24-hour period.
Annual leave: Most employees are entitled to 4 working weeks’ paid annual leave, calculated by whichever method gives the greater entitlement:
- 4 weeks if worked at least 1,365 hours in the leave year
- 1/3 working week per month worked at least 117 hours
- 8% of hours worked in the year (max 4 weeks)
Critical rule: Employers cannot pay in lieu of statutory holidays unless employment is terminated. Employees must actually take the time off.
Ireland’s 10 public holidays (2025):
1. New Year’s Day (January 1)
2. St. Brigid’s Day (February 3)
3. St. Patrick’s Day (March 17)
4. Easter Monday (April 21)
5. May Day (first Monday in May)
6. June Bank Holiday (first Monday in June)
7. August Bank Holiday (first Monday in August)
8. October Bank Holiday (last Monday in October)
9. Christmas Day (December 25)
10. St. Stephen’s Day (December 26)
Public holidays are in addition to the 20 days statutory annual leave.
Sick Leave and Sick Pay: Ireland’s Recent Changes
Ireland introduced statutory sick pay in 2023. For 2025, the entitlement remains at 5 days paid sick leave (the planned increase to 7 days has been postponed). Employees with at least 13 weeks’ service are entitled to statutory sick pay at 70% of their normal earnings, up to a maximum of €110 per day.
Employers must maintain detailed records of statutory sick leave for a minimum of four years, with failure to keep accurate records potentially resulting in fines of up to €2,500. Many Irish employers offer occupational sick pay schemes that are more generous than the statutory minimum.
Maternity, Paternity, and Parental Leave
Maternity leave: 26 weeks paid (via Maternity Benefit from social welfare) plus 16 weeks unpaid optional leave. Employers don’t have to pay during maternity leave unless contractually agreed.
Paternity leave: 2 consecutive weeks within the first 6 months following birth or adoption. Paternity Benefit of €289 per week is paid by the state.
Parent’s leave: 9 weeks per parent (increased from 7 weeks in August 2024) to be taken within the first 2 years of a child’s life. Parent’s Benefit is €289 per week.
Parental leave (long-term unpaid): 26 weeks per parent before the child turns 12 (or 16 if disabled). This is unpaid with no social welfare payment.
If an employee takes protected leave during their probationary period (maternity, paternity, parental, parent’s, or sick leave), the probationary period is extended by the duration of absence.
Probation Periods: Fair Procedures Still Apply
This is where international employers often make costly mistakes. Probation periods cannot exceed 6 months in the private sector (12 months maximum in exceptional circumstances, where it’s in the employee’s interest).
While employees generally need 12 months’ service for unfair dismissal protection, probation doesn’t exempt you from fair procedures. The Labour Court has consistently ruled that employers must follow the Code of Practice on Grievance and Disciplinary Procedures even during probation.
In one notable case, the Labour Court awarded €60,000 compensation plus accrued leave to an employee summarily dismissed during probation without prior warnings or due process. Even during probation, employers should:
- Provide regular feedback on performance
- Clearly communicate concerns
- Give employee opportunity to respond and improve
- Document all interactions and reviews
- Follow fair procedures before termination
Notice Periods and Terminating Employment
Statutory minimum notice periods depend on length of service for employees with 13+ weeks’ continuous employment:
| Length of Service | Minimum Notice Required |
|---|---|
| 13 weeks to 2 years | 1 week |
| 2 to 5 years | 2 weeks |
| 5 to 10 years | 4 weeks |
| 10 to 15 years | 6 weeks |
| 15+ years | 8 weeks |
Payment in lieu of notice (PILON) is permitted if the contract allows it or the employee agrees. Important: Notice periods count toward service length, which matters when approaching the 12-month unfair dismissal threshold.
Fair procedures requirement: Even with proper notice, Irish law requires fair procedures before termination: inform the employee of issues, give opportunity to respond, investigate thoroughly, consider their response genuinely, make a reasoned decision, and provide right to appeal.
Redundancy and Unfair Dismissal
Statutory redundancy: Employees with 2+ years (104 weeks) continuous service are entitled to statutory redundancy payment calculated as: 2 weeks’ pay per year of service + 1 additional week, subject to a weekly pay cap of €600.
Example: An employee with 10 years’ service earning €1,000/week would receive (2 × 10 × €600) + €600 = €12,600 tax-free.
Unfair dismissal: Generally requires 12 months’ continuous service, but there are critical exceptions including dismissals related to:
- Protected disclosures (whistleblowing)
- Discrimination
- Trade union membership/activity
- Maternity, adoptive, parental leave
- National minimum wage claims
The WRC can award up to 2 years’ remuneration for unfair dismissal. The key issue in most cases: employers fail to follow fair procedures, even when they have valid reasons for dismissal.
The WRC Complaint Process
Employees can make complaints to the WRC using the online complaint form. Complaints must generally be made within 6 months (extendable to 12 months for reasonable cause). The WRC provides mediation and adjudication services, with most hearings now held in public. Adjudication decisions are published and can be appealed to the Labour Court within 42 days.
Common Irish Employment Law Mistakes International Employers Make
1. Contract errors: Not providing the Section 5 statement within 5 calendar days (not business days), using UK/US contract templates, missing mandatory clauses.
2. Probation misunderstandings: Assuming probation means “no obligations” or failing to conduct regular reviews and provide fair procedures before termination.
3. Inadequate dismissal procedures: The number one cause of successful unfair dismissal claims is skipping fair procedures, not investigating before deciding, or dismissing “in the heat of the moment.”
4. Holiday pay calculation errors: Not understanding the three calculation methods (employees are entitled to whichever gives greater entitlement), or attempting to pay in lieu instead of requiring leave to be taken.
5. Assuming UK law applies: While Ireland and UK share Common Law traditions, the differences are significant—stronger unfair dismissal protections, more generous statutory leave, different probation rules, and more prescriptive contract requirements.
6. Fixed-term contract violations: Exceeding the 4-year threshold on successive contracts automatically creates permanent employment. Not documenting objective grounds for renewal in writing.
7. Ignoring recent changes: Not updating sick pay policies for the 2023-2024 introduction of statutory sick pay, or missing the August 2024 increase to 9 weeks parent’s leave.
Remote Workers and Irish Employment Law
Since Peak focuses on remote hiring, it’s important to note: all Irish employment law applies fully to remote workers. There is no separate category of rights for remote employees. They are entitled to the same protections, leave entitlements, and fair procedures as office-based workers.
Employers should include specific remote work provisions in contracts addressing equipment, expenses, right to request remote work (not an automatic entitlement in Ireland), and health and safety obligations that extend to the home office.
Staying Compliant: Key Resources and How Peak Helps
Irish employment law evolves continuously. Key monitoring resources include:
- Workplace Relations Commission (workplacerelations.ie) – enforcement body, publishes decisions and guidance
- Citizens Information (citizensinformation.ie) – plain-English explanations
- Irish Statute Book (legislation.gov.ie) – full text of legislation
Upcoming changes to watch: Living wage introduction (planned by 2026), potential resumption of sick leave increases, pay transparency directive implementation, auto-enrolment pensions rolling out from 2025.
How Peak handles this for you: When you hire through Peak’s EOR service in Ireland, we monitor all legislative changes and WRC case law, keep contract templates updated for compliance, calculate payroll according to current rates, track leave entitlements per latest requirements, and provide proactive alerts about changes affecting your team. Our Ireland-based experts interpret how changes apply to your specific situation.
Need help staying compliant with Irish employment law?
Peak PEO handles all employment law compliance for your Irish team. As an Ireland-headquartered EOR, we provide fully compliant Irish employment contracts, monitor all legislative changes, calculate and manage all leave entitlements, handle statutory sick pay and family leave, ensure fair procedures in employment issues, and represent you in any WRC matters (though our compliance approach means they’re rare).
You focus on growing your business in Ireland. We handle the compliance complexity.
