Employment

Individuals from outside the European Economic Area including US citizens must, in most cases, obtain employment permits from the Irish Department of Enterprise Trade and Employment (DETE) before starting employment in Ireland. There are various permits available depending on the expertise/skill level and the financial terms of the employment offer. In some circumstances the DETE will consider applications to transfer key employees (Intra Company Transfers) on a temporary basis. The DETE has wide discretion to decide on permit applications; however, highly skilled, highly paid and senior management employees are, in general, more likely to be granted permits. We have experience in advising employers on employment permit requirements and can also make applications on a client’s behalf and liaise with the DETE.

The employee recruitment process is regulated by equality laws:

• Employers cannot discriminate against job applicants on various grounds including sex, marital status, religion, age, race and disability amongst others
• Employers recruitment decisions’ can be challenged and employers may be required to justify decisions by reference to selection criteria
• Applicants can obtain access to interview notes and other personal data relating to them.
  

Irish law requires that the employer furnishes employees with a written statement of the principal terms of employment within two months of commencement. However, best HR practice suggests that employers should go further and fully document all aspects of the employment relationship through employment contracts, handbooks and related policies for all employees including senior management.

We can assist by providing templates for all relevant employment documentation, which can be tailored to meet specific requirements at all levels of seniority.

Ireland’s current legal minimum wage for adult employees is €8.65 per hour which may be increased periodically by government notice. Otherwise there are no mandatory payments required as a matter of law. However, it is normal for contractual benefits to be significantly greater and many Irish employers provide additional contractual benefits including pensions (see below), life assurance, disability cover, health insurance, bonus schemes and car allowances. We can fully advise clients on contractual benefit schemes.

Contractual obligations aside, employers with employees who will not have access to a pension scheme within six months of commencing employment must provide such excluded employees access to a standard PRSA (Personal Retirement Savings Account) from the date they commence employment.  A PRSA is a contract between an employee and an authorised PRSA provider (often a bank or insurance company) in the form of an investment account. Subject to any contractual obligations employers are not obliged to contribute to a PRSA but must ensure that it is an approved standard PRSA and must facilitate contributions by the employee.

Employees have a statutory entitlement paid annual leave on the basis of time actually worked. Full-time employees are entitled to 20 paid working days annually with a pro rata type formula for part time employees. Timing of employee holidays must generally be agreed with the employer who must take account of employee’s need for rest and relaxation.

In addition, there are nine annual public holidays in Ireland. On public holidays, an employee must generally be given a paid day off on that day or within a month, an extra day's annual leave or an extra day's pay at the option of the employer.

Employees are entitled to take sick leave so long as they comply with the employer’s absence management policies. This may require a certificate from a doctor be furnished by the employee for absences and to require the employee to keep the employer informed on their progress. There is generally no statutory obligation on employers to pay employees when absent due to illness. In practice, many employers offer contractual sick pay schemes which continue pay up to a certain maximum, which varies between employers.

Female employees are entitled by law to up to 42 weeks’ maternity leave. During this time employment rights are preserved and the employee cannot be dismissed. The employer is not obliged to pay employees on maternity leave but, as with sickness, many offer maternity pay schemes. Employees who are parents are entitled to up to 14 weeks’ unpaid parental leave subject to certain requirements.

Equality is a significant feature of Irish employment law. Employers cannot discriminate against employees on various grounds including sex, marital status, religion, age, race and disability amongst others. There is no minimum length of service for employment equality claims.

Dismissal of employees is regulated by statute and the employment contract. There are mandatory employment protection rights for employees with one year's continuous service who have the protection of the Unfair Dismissals legislation. This restricts employers’ rights to terminate unless substantive grounds for dismissal can be identified. There are also significant procedural requirements which must be applied before a dismissal can occur.

Ireland does not have mandatory disciplinary procedures but best practice due process standards have been identified by the courts. Employers are strongly advised to have a written disciplinary procedure.

Employees succeeding in a claim of unfair dismissal may be awarded compensation of up to twice their annual remuneration package (based on their actual financial loss) and, in rarer cases, reinstatement.

Irish law does not compel employers to recognise trade unions; that is, to enter into agreements with, or negotiate with them, in relation to their employees. Trade unions can in limited instances, apply to the Labour Court for binding decisions on rates of pay and conditions of employment where no collective bargaining takes place.

The principal dispute resolution authorities in industrial relations matters in Ireland are the Labour Relations Commission (LRC) and the Labour Court. The LRC provides a comprehensive range of industrial relations services to employers and trade unions, including an advisory service and a conciliation service. It does not make binding awards and does not issue formal recommendations. The Labour Court is not really a “court” in the judicial sense. Rather, it is a dispute resolution body that is primarily responsible for the resolution of industrial disputes after the LRC cannot resolve the matter. Following investigation, the Labour Court usually issues a recommendation giving its opinion on the merits of the dispute and the terms on which it should be settled. This is usually not legally binding.