Hiring in Ireland in 2025: An employer's handbook

Hiring someone for your business is a big step. It means things are going well – or at least busy – and you're ready to share the load.

But most small business owners aren't HR experts. You might know your trade inside out, but when it comes to contracts, payroll or the legal side of things, it can feel like a minefield. And that's before you even get to interviews or finding the right person for the job.

It's not unusual to feel stuck. Some business owners put off hiring altogether because they're afraid of making a mistake or getting it wrong. Others bring someone in too quickly, without a clear plan, and end up regretting it.

This guide is here to help you avoid both. It walks you through the basics of hiring someone in Ireland – legally, fairly and with as little stress as possible.

We'll keep the language simple. We'll point you to trusted sources like Revenue, the Workplace Relations Commission and Citizens Information. And we'll focus on what you actually need to know – not the theory, but the stuff you'll deal with day to day.

1. Do you really need to hire?

Just because you might be busy doesn't mean you need a new employee. Sometimes, outsourcing or taking on a contractor might be enough.

But if the workload isn't easing, or you're constantly turning down work, it could be time to think about hiring.

Here are a few signs you might need help:

• You're working evenings and weekends just to keep up.

• You're missing deadlines or having to say no to new customers.

• You're doing everything yourself – sales, admin, delivery – and struggling to stay on top of it.

• You want to grow but can't without more hands on deck.

Hiring someone isn't just about getting more done. It also gives you space to step back and focus on running the business instead of being stuck in the day-to-day.

But it's a commitment. Once you hire an employee, you take on legal responsibilities – contracts, pay, tax, insurance and more. So it's worth being sure before you make that move.

If you're not sure whether to hire or not, it might help to:

• talk to your accountant about what you can afford

• look into state supports like JobsPlus which provides a grant if you hire someone who's been unemployed

• consider part-time hours or a fixed-term contract as a first step

You'll find more details on JobsPlus, including eligibility and how to apply.

2. Understanding employment law basics in Ireland

Once you hire someone, even part-time, you become an employer. That brings legal responsibilities, and it's important to understand what they are – not just to stay within the law, but to make sure you're treating people fairly.

Irish employment law isn't especially complicated, but there are clear rules you need to follow. These apply to all employers, no matter how small your business is.

The following may seem like a lot, but most of it only needs to be set up once. Once you're registered and your contracts and payroll systems are in place, day-to-day admin becomes much easier.

Contracts of employment

By law, you must give every employee a written summary of their core terms of employment within five days of them starting work. This is known as a Day 5 Statement.

It must include:

• the employer's and employee's names and addresses

• the place of work

• the job title or nature of the work

• the start date

• how long you expect the contract to last (if it's temporary)

• the pay rate and how it's calculated (hourly, salary and so on)

• the number of hours you expect the employee to work each week

You must also provide the full written contract of employment within one month. This includes more detail on things like sick leave, notice periods, annual leave, grievance procedures and so on.

You can find templates for these documents on the Workplace Relations Commission website. You don't need to reinvent the wheel – but you do need to make sure the contract suits the specific role you're hiring for.

Minimum pay and working conditions

Ireland has a national minimum wage, which the government sets and reviews regularly. At the time of writing (September 2025), it stands at €13.50 per hour for workers aged 20 and over.

Reduced rates apply for younger workers (aged 19 and under). You can check the most up-to-date rates at the Citizens Information website.

Employees are also entitled to:

• paid annual leave – four working weeks per year (based on hours worked)

• public holidays – 10 per year, with paid time off or time in lieu

• breaks during work – for example, a 15-minute break after 4.5 hours

Even if you're hiring someone informally – say, for a few hours a week – you still need to follow these rules.

Statutory Sick Pay (SSP)

The Statutory Sick Pay scheme began in 2022 and has expanded over time. Here are the conditions at the time of writing (September 2025):

• Employees are entitled to five days of paid sick leave per year.

• Sick pay is set at 70% of their normal daily earnings, up to a cap of €110 per day.

• The entitlement begins once the employee has worked for you continuously for at least 13 weeks.

• The employee must provide a medical certificate from a registered medical practitioner for each sick day they claim.

You can find more details at the Workplace Relations Commission website.

Registering as an employer

Before you can pay an employee, you need to register as an employer with Revenue. You do this through ROS (Revenue Online Service). Once registered, you'll be responsible for:

• PAYE (Pay As You Earn): income tax deducted from the employee's wages

• PRSI (Pay Related Social Insurance): both employee and employer contributions

• USC (Universal Social Charge): based on income

You must:

• register before you run your first payroll

• submit payroll details to Revenue each time you pay an employee

• provide payslips and keep records

If you use payroll software, most of this is handled automatically – but it's still your responsibility to make sure everything is correct. The Revenue website has a full guide.

Insurance

You'll also need employers' liability insurance, which protects you in case an employee is injured at work and makes a claim.

It's not a legal requirement in Ireland, but it's considered best practice – and most insurance brokers will strongly advise you not to skip it. Some contracts or leases may require it too.

Data protection

You'll be collecting personal data about your employees – such as PPS numbers, bank details, health certificates and more. That means you have responsibilities under GDPR (General Data Protection Regulation). You must:

• only collect the information you need

• store it securely

• not share it without consent, unless the law says you need to

You don't need to employ a full-time data protection officer to look after this, but you do need to be mindful of your obligations. The Data Protection Commission offers guidance tailored to small businesses.

3. Recruitment step by step

There's more to hiring someone than just finding a good candidate. You also need to be clear, fair and organised from the start.

A solid recruitment process saves time, reduces mistakes and helps you avoid legal issues later.

Here's how to do it, step by step:

Step 1: Define the role

Before you start writing job ads, take time to get clear on what you need. Ask yourself these questions:

• What exactly do I want this person to do?

• What skills or experience are essential?

• What hours or days will they work?

• Is this a permanent role, or just for a fixed time?

Write down a simple job description that includes:

• the job title

• the main duties

• the skills or experience needed

• reporting lines (who they'll report to, or who they'll work with)

• pay and hours (if decided)

You don't need to overthink this, but be specific. A vague job ad brings in the wrong candidates and wastes everyone's time.

Step 2: Decide on the type of contract

In Ireland, most employees fall under one of these categories:

• Full-time permanent

• Part-time permanent

• Fixed-term contract (a set start and end date)

• Casual or flexible hours

Make sure the type of contract fits the actual working pattern. For example, if someone's only working two days a week long term, that's part time – not fixed term.

Don't assume someone is a self-employed contractor unless you're sure. If you control when and how they work, they may legally be an employee – even if they invoice you.

For clarity on this, see Citizens Information's page on employment status.

Step 3: Advertise the job

Once your job description is ready, you'll need to get the word out. Here are some common places to advertise:

• JobsIreland.ie – a free government-run jobs board

• LinkedIn

• Local Facebook groups or community forums

• Your own website or email newsletter

• Industry-specific sites (for example, for trades or creative work)

Make sure your advert is clear and doesn't exclude anyone unfairly. Under Irish equality law, you can't discriminate based on gender, age, race, religion, disability or several other factors. That includes the wording in your job ad.

Avoid phrases like "young and energetic" or "digital native" – these can be seen as ageist or exclusionary, even if that's not your intent.

Step 4: Shortlist and interview candidates

Once applications start coming in, take your time reviewing them. Shortlist people who meet your essential criteria, then invite them for an interview – either in person or online.

Keep things simple:

• Prepare a few standard questions in advance.

• Take notes during each interview.

• Ask about their experience, not just their qualifications.

• Leave space for the candidate to ask questions too.

If you're rejecting someone, let them know. It's polite and it reflects well on your business.

Step 5: Make the offer

Once you've found the right person, follow up quickly. A short call or email to confirm the offer is fine, but make sure you follow up with written terms as soon as possible – ideally a contract or offer letter.

At this stage, you should also:

• agree on a start date

• confirm pay, hours and the type of contract

• gather documents like PPS number and bank details for payroll

4. Onboarding and induction

Hiring someone is only half the job. Getting them set up properly from day one (known as "onboarding") makes a huge difference – for them and for you.

A good onboarding process helps the person settle in, understand their role and start contributing quickly. It also shows that your business is organised and respectful, which sets the tone for everything that follows.

You don't need a formal HR department to do this well. Just cover the basics and keep communication clear.

What to do before they start

Make sure you have:

• a signed contract (or at least a signed offer letter)

• their PPS number and bank details for payroll

• a start date, agreed hours and work location

• any tools, uniforms or equipment they'll need ready to go

If they're working on-site, check your insurance and health and safety coverage is up to date.

What to cover on the first day

Even if you only have a small team, it's still worth having a simple plan for their first day. Introduce the new employee to:

• the team (if this applies)

• their tasks and who they report to

• workplace policies – especially around health and safety, breaks and using equipment

• payroll – how and when they'll get paid and how to access their payslip

• any systems, tools or apps you expect them to use

If your business is very small, onboarding might just be a one-on-one conversation – that's fine. Just make sure you cover the essentials and have them documented.

Probation periods

You can include a probation period in the contract. This is a trial period, usually lasting six months or less, where either side can end the arrangement with shorter notice. It gives both you and the employee time to see if it's the right fit.

During probation:

• you still need to follow employment law

• employees are still entitled to minimum wage, leave and other rights

• you must give at least one week's notice if ending the contract

Keep a record of any feedback or concerns, and make time for a short review near the end of the probation period.

Support and communication

Even in a small business, don't assume people will "just figure it out". Check in regularly, especially during the first few weeks. Ask how they're getting on and be clear about what you're expecting.

If you're new to managing people, don't worry. Just be honest, consistent and open to questions.

5. Pay, benefits and leave

Once you've hired someone, you're responsible for paying them correctly and giving them what the law says they're entitled to.

This includes their wages, time off and any deductions you need to make for tax and PRSI. It also includes new rules coming in around pensions.

If you're doing this for the first time, don't worry – there are systems and software that can help. But it's still important to know what's expected.

Setting up payroll

As soon as you employ someone, you need to set up a payroll system. You can do this:

• through payroll software

• with the help of your accountant or payroll provider

• if you have very few employees, directly through Revenue Online Service (ROS)

Each time you pay an employee, you must:

• deduct the correct tax (PAYE), PRSI and USC

• submit a real-time payroll report to Revenue

• give the employee a payslip showing how their pay is broken down

It's your responsibility as an employer to get this right – even if someone else manages the payroll for you.

Minimum wage in 2025

As of September 2025, the national minimum wage is €13.50 per hour for workers aged 20 and over. Lower rates apply for younger workers (19 and under).

You can check the most up-to-date rates at the Citizens Information website.

If you're paying more than the minimum, that's fine – but never go below it, even for trial periods.

Statutory leave entitlements

Your employees have a legal right to certain types of paid and unpaid leave, which you must respect. Here's what's required:

Annual leave

• Employees are entitled to four working weeks of paid holidays per year, based on full-time hours.

• Part-time workers earn leave on a pro-rata basis.

• Employees can't waive their holiday rights, even if they ask.

Public holidays

Ireland has 10 public holidays. For these, employees may be entitled to:

• a paid day off

• an extra day's pay

• a day off in lieu

The exact entitlement depends on their contract and working pattern.

Statutory Sick Pay

As of September 2025:

• employees are entitled to five days of paid sick leave per year

• sick pay is set at 70% of their normal daily earnings, capped at €110 per day

• the entitlement begins once the employee has worked for you continuously for at least 13 weeks

• the employee must provide a medical certificate from a registered medical practitioner for each sick day they claim

You can find more details at the Workplace Relations Commission website.

Family leave

This includes:

• maternity leave (26 weeks paid, up to 16 additional unpaid)

• paternity leave (two weeks)

• parent's leave (nine weeks)

• parental leave (26 weeks unpaid per child, up to age 12)

• carer's leave, adoptive leave and more

Entitlements can vary depending on the age of the child, the employee's relationship with them and how long the employee has worked with you.

Check the Citizens Information website for current rules and notice periods.

Auto-enrolment pensions (coming in 2026)

A new auto-enrolment pension scheme called My Future Fund is due to begin in Ireland in 2026.

It means most employees will be automatically enrolled in a state-supported retirement savings plan – unless they choose to opt out.

As an employer, this means:

• you must set up payroll systems to support the scheme

• you'll contribute alongside the employee and the state

• employer contributions will be set as a percentage of the employee's gross pay

Even though the scheme isn't fully in place yet, it's a good idea to speak to your accountant or payroll provider now and plan ahead.

You can find more information at the Citizens Information website.

6. Supports for employers

Hiring someone costs money – not just in wages, but in time, admin and risk. The good news is that there are supports available to help small businesses in Ireland reduce that burden.

These supports aren't just for large companies. Many are designed specifically for micro and small enterprises, including sole traders.

Some offer funding. Others provide training or access to talent. Here are the ones worth knowing about.

JobsPlus

JobsPlus gives you a grant if you hire someone who has been unemployed for a long period. Depending on the employee's circumstances, you get a payment of €7,500 or €10,000 over 18 months.

Basic eligibility:

• The job must be full-time (at least 30 hours per week, over at least four days).

• The employee must be on the live register.

You need to apply before hiring. You can find full details about eligibility and the application process at the Citizens Information website.

Apprenticeships

If you're in a trade or a field that allows for structured learning, taking on an apprentice could be a smart option.

• You get access to motivated workers who learn on the job.

• The government covers the cost of off-the-job training (for example, in an education centre or college).

• Some apprenticeships offer employer grants.

Apprenticeships are no longer just for trades – they now exist in areas like IT, finance, hospitality and logistics.

Explore your options at apprenticeship.ie.

Skillnet Ireland

Skillnet Ireland helps businesses upskill their staff with subsidised training. There's no catch – it's state-funded and free to take part. Here's how it works:

• You join a local or sector-specific Skillnet.

• You get access to reduced-cost training (such as digital skills, management, compliance, software tools).

• Some networks also help with recruitment and onboarding.

Find a Skillnet near you at the Skillnet Ireland website.

Intreo and JobsIreland

Intreo offices (run by the Department of Social Protection) and the state-run JobsIreland.ie website can help you:

• advertise roles

• connect with jobseekers

• get advice on employment supports, including JobsPlus and wage subsidies

If you're unsure where to start, a quick chat with an Intreo case officer can point you in the right direction.

7. Hiring mistakes to avoid

Employing someone for the first time can feel like a learning curve – and that's normal. But some mistakes come up again and again, especially for small business owners who are juggling everything themselves.

Here are a few of the most common issues and how to avoid them:

Not issuing a written contract

This isn't optional – it's the law. You must give every employee a written summary of their core terms within five days of them starting, and a full contract within a month.

Many small employers skip this or put it off, often because they aren't sure what to include. But not having a contract leaves you exposed if anything goes wrong later.

Use the Workplace Relations Commission's sample documents to get started – they're free and legally sound.

Treating someone as a contractor when they're really an employee

This one causes a lot of trouble. Just because someone sends you an invoice or works part-time doesn't automatically make them self-employed.

If you control their hours, tools or how they do the work, they may legally count as an employee – and that means PAYE, PRSI, and employment rights apply.

If you're unsure, see Citizens Information's page on employment status.

Forgetting to register as an employer

Hiring someone without telling Revenue may seem like an admin issue – but it's not. It means you're not deducting tax or PRSI properly and that can lead to penalties.

Register through ROS before your first payroll run and make sure you're submitting real-time payslips each time you pay.

Paying cash in hand

This still happens, especially for casual or part-time roles. But it's risky – for you and the worker. It means no record of earnings, no payslips and no legal protection.

It also means you're not keeping to tax and employment law. Even if someone asks for cash, it's your responsibility to run payroll properly.

No probation review

Plenty of employers include a probation period in the contract, then forget about it. That's a missed chance to check in and make sure things are working for both sides.

It's also harder to end the employment later if you haven't documented any issues. Mark a review date in your calendar early on and have a short conversation about how things are going.

Ignoring insurance

If someone gets hurt at work and you don't have employers' liability insurance, you could be in serious financial trouble.

It's not legally required in Ireland, but it's highly recommended – and insurers and landlords often expect you to have it.

Check with an insurance broker. It's usually not expensive for small teams.

Thinking small businesses are exempt from employment law

They're not. Whether you have one employee or 50, the rules are the same. That includes pay, contracts, leave, health and safety and everything else.

If you're not sure about your responsibilities, organisations like the Workplace Relations Commission and Citizens Information can provide clear, practical guidance.

8. Hiring checklist for employers in Ireland

Before you hire someone, there are a few things you need to have in place. This list covers the basics – from legal requirements to simple good practice. Tick each one off as you go:

Before hiring

• You've defined the role clearly (job title, duties, hours, pay, type of contract).

• You've checked whether the role is full-time, part-time, fixed-term or casual.

• You've written a job description.

• You've checked that the pay meets or exceeds the minimum wage.

• You've registered as an employer with Revenue.

• You've advertised the role fairly and in line with equality law.

• You understand whether the person will be an employee or a contractor – and why.

• You've checked if you're eligible for supports (for example, JobsPlus, apprenticeships).

After hiring

• You've issued the employee with a written statement of terms within five days of their start date.

• You've issued the employee with a full written contract within one month.

• You've collected the employee's PPS number and bank details.

• You've set up payroll and are deducting PAYE, PRSI and USC.

• You've arranged employers' liability insurance (strongly recommended!).

• You've provided details on pay dates, payslips and holiday entitlement.

• You've explained workplace rules: breaks, safety, sick leave, reporting lines.

• You've set a probation period (and arranged a date for the review meeting).

• You've kept a secure record of all documents and signed contracts.

This list covers the essentials, but if in doubt, ask for advice. Revenue, Citizens Information and the Workplace Relations Commission all offer help that's free and reliable.

9. Frequently asked questions (FAQs) about hiring

Do I really need to give a written contract?

Yes, it's the law. You must give the employee a written summary of their core terms within five days of them starting. A full written contract must follow within one month.

Can I just pay someone cash in hand if they're only helping out now and then?

No. Employment law covers even casual or part-time workers. You need to register as an employer, run payroll and deduct tax properly. Paying cash without records puts you – and them – at risk.

What's the difference between an employee and a contractor?

A contractor is self-employed. They do the work in their own way, on their own schedule and usually provide their own tools.

An employee works under your control – you decide how, when and where they do the work.

If it looks like employment, Revenue will treat it that way – even if you call it a contract.

Do I have to pay for sick days?

Yes. Under the Statutory Sick Pay scheme, employees are entitled to five paid sick days. You must pay 70% of their wage (up to €110 per day), as long as they've worked with you continuously for at least 13 weeks and provided a medical certificate (a doctor's note).

Can I hire someone on a trial basis without any paperwork?

No. Even during probation, the person is still an employee. They must get a written contract and are entitled to all the same rights – including minimum wage, annual leave and breaks.

Do I need to set up a pension scheme for my employee?

If you don't already offer a pension, you'll need to join the state's new auto-enrolment scheme, My Future Fund, expected to launch sometime in 2026.

It applies to most employees aged 23 to 60 earning over €20,000. Both you and the employee will make contributions and the state will also top it up.

Can I let someone go during their probation if it's not working out?

Yes – but you still need to follow fair procedures. Give clear feedback, keep written records and provide proper notice (usually at least one week). Always double-check your contract terms first.

Is there help available for first-time employers?

Yes. Local Enterprise Offices, Intreo offices and the Workplace Relations Commission can all offer advice. If you're eligible, you may also be able to get financial support through schemes like JobsPlus.

Next steps

Hiring someone can feel like a big leap – especially if you're running a small business on your own or with a tiny team. The paperwork, the legal rules, the cost…it's a lot to think about. But it's also a sign of growth.

You don't need to know everything from the start. You just need to get the basics right, ask for help when you need it and keep things fair and clear.

If you're at the very beginning:

• make a shortlist of what tasks you need help with

• think about whether it's a part-time job, full-time role or something short term

• check what supports you might be eligible for

• talk to your accountant or Local Enterprise Office for free guidance

If you're already hiring:

• make sure your contracts and records are in order

• set reminders for reviews and key dates (like probation check-ins or leave entitlements)

• stay informed – laws change, and it's easier to keep up than catch up

There's a learning curve, but you don't have to do it alone. Organisations like Citizens Information, Revenue, Workplace Relations Commission and your Local Enterprise Office exist to help – and most of their advice is free.

And if you get the basics right early on, hiring can make your business stronger, more sustainable and a better place to work – for you and the people who join you. 

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