Though Ireland is a small nation, it boasts an impressively educated and skilled workforce. According to the Organization for Economic Cooperation and Development (OECD), Irish workers are the most productive in the world. The strengths of the Irish workforce make the country an appealing destination for companies based elsewhere to search for new talent.
Employers sometimes shy away from hiring internationally due to the challenges of international HR, ranging from compliance issues to administrative hassles. One way to address these concerns is to work with an employer of record (EOR) in Ireland to hire Irish employees. An EOR is a third-party organization that enables and facilitates cross-border employment. As an established entity in the country, the EOR handles compliance, payroll, benefits, and more.
If you’re thinking of recruiting from this island nation, here’s what you need to know about using an employer of record to onboard Irish talent.
A few things to know about hiring in Ireland
Before hiring employees in Ireland, it’s important to know some key details about employment there. Here’s a quick overview:
- Currency: Ireland is part of the European Union and uses the euro.
- Official language: Ireland has two official languages—English and Irish (Gaeilge).
- Paid leave: Basic yearly paid leave for Irish workers is four weeks. Providing more vacation time than that is up to the employer.
- Working hours: The standard working week in Ireland is 39 hours, and the legal maximum is 48 hours per week.
- Work culture: The work culture in Ireland values work-life balance, and expecting Irish employees to work late nights or weekends is not common.
Mandatory employer costs
The cost of hiring internationally can vary greatly from one nation to another, depending on employer tax rates and other mandatory employer costs. Employers of Irish workers typically pay Pay Related Social Insurance (PRSI), which is a social insurance contribution paid by both employers and employees in Ireland. PRSI rates range from 8.8% to 11.05% of the employees’ gross salaries. These contributions go towards funding social welfare benefits and pensions for employees. So, if you intend to pay an Irish worker a $100,000 gross annual salary, your total annual costs for that employee would be around $110,497.
Use Oyster’s employment cost calculator for a full breakdown of what it would cost to bring on a new Irish employee.
Working with an EOR in Ireland
Using an EOR is one way to hire Irish employees as a company based in another part of the world. An employer of record is a third-party organization that acts as the legal employer of your business’s employees in another country. In this case, the EOR would be the official employer of your Irish employees while they perform work for your company. The EOR is responsible for ensuring compliance with Irish labor laws, handling payroll and administrative tasks, and managing employer taxes due to the Irish government.
When you work with an employer of record in Ireland, your company maintains direct control over the Irish employees, just like with any other employees in your organization. You still assign them their tasks and manage their work performance, but the EOR partner handles the employment relationship, including HR admin and compliance.
Benefits of working with an Irish EOR
If you want to hire Irish employees, working with an EOR in Ireland affords your business several advantages, such as:
- Saving time and money: To hire an Irish employee directly, you would need to set up an entity in the country. Establishing foreign entities can be time-consuming and costly for businesses, so using an EOR to bring on Irish workers will save your business time and money.
- Ensuring compliance with local laws: Compliance is a major concern for any business hiring internationally. EORs have expertise in applicable local laws and will take on the responsibility of ensuring your business remains compliant with Irish employment laws and tax regulations.
- Alleviating administrative burdens: The administrative tasks associated with onboarding and managing foreign workers add up quickly. An EOR can manage various human resource responsibilities for your Irish workers, easing the burden on your HR team.
One of the risks associated with bringing on foreign workers is mismanaging your international tax obligations. Here, again, an EOR can help mitigate cross-border tax risks. Because the EOR handles tasks like submitting payroll taxes and calculating social program contributions, you don’t have to worry about compliance with tax laws. An EOR partner provides peace of mind and the freedom to focus on your business—not complicated international tax laws.
Using EOR services vs. opening a subsidiary
Using an EOR is not your only option for hiring Irish workers as an international employer. The main alternative to working with an EOR is opening a subsidiary in Ireland, but keep in mind that these two options are very different.
Opening a subsidiary or local entity means creating a new company based in Ireland that reports to your parent company. Though controlled by your company, this entity is legally separate and subject to all the local laws and regulations in Ireland. Some of the benefits of having a local entity in Ireland include:
- Increasing brand awareness in the country
- Showing your commitment to being a part of the community
- Gaining a stronger foothold in that location
Unfortunately, the drawbacks of opening a foreign subsidiary or entity are significant. You need a substantial investment of time and resources to open an entity in Ireland, which may not be worth it if you only intend to hire a handful of Irish employees.
Verdict: There’s no right or wrong answer between using an EOR or opening a subsidiary. If you want to establish a permanent, extensive presence in Ireland and hire extensively in the country, a subsidiary might be the right choice for your business. If, on the other hand, you only want to hire a few Irish employees quickly, using an EOR is likely the better option.
Oyster as your hiring partner in Ireland
If you want to hire not only in Ireland but in other countries as well, you may have to research and vet EORs for each country or territory. This can soon become burdensome and expensive.
To onboard talent across multiple countries, a global employment platform like Oyster may be the best choice. As a leading global employment solution, Oyster enables you to hire, pay, and manage workers from more than 180 countries without the usual hassle and expenses. You can take care of all your international employment needs in one platform, from compliant contracts to payroll, benefits, and more.
Learn more about how Oyster’s global employment solution can help you onboard talent in Ireland and around the world.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
