PEO & Employer of Record in Ireland | INS Global
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PEO in Ireland

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Ireland, home to many multinational companies, has become a highly desired place to do business in Europe, mainly due to its favorable tax regimes. Should you have a business that you intend to expand to Ireland or start a new business, you don’t have to incorporate your own entity and face the challenges that come with it.

Using a Professional Employment Organization (PEO) as an alternative to incorporating a company has become more prominent in Ireland in recent years. A PEO solution may be ideal for businesses looking for fast entry and low risk.

INS Global is your worldwide PEO partner of choice for expansion into Ireland. Our HR outsourcing services can help you achieve your goals with innovative and efficient solutions.

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Want to have a Team in Ireland TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in Ireland - Summary

The Advantages of a PEO in Ireland

Time and Cost Reduction

An Ireland PEO will save your company time and money. Your company will gain fast access to the market, which means that it can immediately begin business operations. Moreover, the cost of using a PEO is considerably less than setting up your own entity and dealing with any delays that may be involved.

Compliance Assurance

The PEO company sets up all the operations and knows which processes to follow and regulations relevant to your business. This service allows your managers and staff to concentrate on more strategic tasks that are important to the functioning of the business.

Streamlined Company Structure

A PEO acts as an outsourced HR department. This means that your business can rely on the PEO company to keep you updated on all administrative and HR matters as much as you prefer. If there are any changes to regulations or employment laws, the PEO company can ensure your business remains compliant.

Tailor-made Solutions

A PEO company offers a range of services to complement your setup in a new country, like RPO (Recruitment Process Outsourcing), payroll management, and tax administration.

Employee Satisfaction

A global PEO partner ensures your employees are secure in terms of compliance assurance and have all of their payroll and HR service requirements met. On average, this security reduces turnover by 14% and guarantees higher levels of loyalty in the long term.

A PEO VS Incorporating a Company

With more companies choosing to use a PEO, the need for company incorporation has become substantially less. Incorporation may be preferable for larger companies who wish to enter Ireland or Europe and have long-term plans.

However, a PEO is generally the preferred choice for small to medium-sized enterprises (SMEs) who want to enter the European market and are not entirely sure of their long-term plans or require a more cost-efficient solution. A PEO essentially allows a business to hire staff without incorporating a company in the target market. This will enable businesses to recruit and carry on their day-to-day activities in a matter of days while complying with local regulations.

A PEO provides:

  • Rapid Market Entry
  • Reduced Risk
  • Access to Expertise
  • Scalable Individualized Strategies
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Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

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How Does an Ireland PEO Work?

INS Global’s PEO strategy can have your operations up and running in days following these steps:

  1. First, we gain a comprehensive idea of the scope of your project and what it entails.
  2. We discuss all the project details and then provide recommendations on best addressing your business needs.
  3. Once the terms are agreed upon, we can hire your staff on your behalf and onboard them through our PEO entity.
  4. Our PEO handles the onboarding and administrative processes required for your employees, such as registering the employees with the proper authorities and tax bureau.
  5. This ensures that the employees are hired compliantly and can work in Ireland.
  6. While we take care of the HR side, you and your employees can operate as usual and focus on your success.

The Differences Between an EOR (Employer of Record) and a PEO (Professional Employer Organization)

When considering a PEO, you are likely to hear about EORs. The two types of service differ in how they relate to you and your employee but are very similar in the assistance they offer. In general:

  • PEOs provide HR services to employees of other companies
  • EORs legally and officially hire and take responsibility for employees on behalf of other companies
  • PEOs make contracts with the original company that requests the service
  • EORs make contracts directly with the employee under the direction of the client company
  • In some countries, there may be more of a distinction between PEOs and EORs, so it’s helpful to understand the difference.

INS Global offers both PEO and EOR services in Ireland. Contact us today, or read here to learn more and decide which may be best for your company.

Labor Law in Ireland

Ireland’s labor law does not distinguish between full-time, part-time, and fixed-term employees in terms of work agreements. These different categories of employees are entitled to be treated equally and have the same rights and entitlements as permanent employees.

There are no fixed requirements for a contract of employment. Employers and employees have extensive freedom to decide contract specifications together.

However, employers must present employees with a statement of the main terms and conditions of employment within at least the first two months of commencement. These terms must include the place of work, duration of the contract, the applicable rate and method of calculation of payment, the payment frequency and any terms and conditions regarding the working hours of employees, information regarding incapacity due to workplace injury or sickness, and paid sick leave

Probation periods may be up to 12 months from the commencement of the contract. However, in practice, the agreed terms for probation are generally shorter and should be made in writing.

Working Hours in Ireland

Irish working hour policies are set out under the Organization of Working Time Act 1977. According to this act, the maximum average working hours per week is 48 hours.

Additionally, hours may be averaged over specific periods, depending on the circumstances. Employees are also entitled to 15-minute rest breaks after 4 1/2 hours have been worked and at least 30 minutes rest breaks where six hours have been performed.

Ireland Holiday Policy

In Ireland, employees are generally entitled to a minimum of 20 holiday days per year. For an employee to be entitled to the full 20 days, a certain number of hours must have been worked.

If an employee does not meet this threshold, holidays will be granted pro-rata. In addition, there are 9 paid public holidays each year.

Sick Leave in Ireland

If there are no express terms in the contract of employment relating to the sick pay scheme or no existing practice in the workplace, the employee is not entitled to receive money from the employer in the case of absence due to sickness or injury. In this case, the employee will claim social welfare benefits if they qualify.

Larger companies often provide wages for cases of sickness or injury for a limited period. This provision of wages may be subject to a refund once an employee has received state benefits.

Maternity and Paternity Leave in Ireland

Maternity leave laws are found in the Maternity Protection Acts 1994 and 2004. Female employees may take up to 42 weeks of maternity leave (after giving 4 weeks’ notice), including 26 weeks of ordinary maternity leave and 16 weeks of additional maternity leave. The maternity leave must include at least 2 weeks before the birth and 4 weeks after.

During maternity leave, an employer is not obliged to pay the employee. However, the state provides a maternity allowance of 80% of the employee’s usual gross salary during the first 26 weeks of leave. The 16 weeks of additional maternity leave are taken at the employee’s own expense.

Paternity leave in Ireland is regulated by the Paternity Leave and Benefit Act 2016. According to the act, paternity leave is available to all fathers, including self-employed, same-sex couples, and those who have adopted a child.

This law provides the father with two weeks of continuous statutory paternity leave from employment to be taken within the 26 weeks of childbirth. Employers have no obligation to pay employees who take paternity leave like maternity leave. However, employees may qualify for paternity benefits.

Tax Law and Social Security Contributions in Ireland

According to the tax law in Ireland, deductions must be made from employees’ salaries and wages under the Pay As You Earn (PAYE) system. Additionally, employers and employees are required to make social insurance contributions under the Universal Social Charge.

Ireland has a tax credit system instead of a tax allowance system when calculating income tax.
Tax is calculated after income payable to the Irish tax department has been identified. Any available credits will then be deducted.

Personal tax rates vary between 20% and 40%, and apply to different levels depending on personal circumstances. An individual who is employed in Ireland should apply for a Certificate of Tax Credits and a standard rate cut-off point, which allows for the PAYE.

Corporate income tax in Ireland is 12.5% for Trading corporations and 25% for Non-trading corporations. As of 2022, Employers should expect to pay 8.8% of an employee’s salary towards Social Security contributions.

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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