Ireland
Regulatory Environment
Irish labour regulation is effectively
that of the European Union, with some
minor differences of local implementation.
On the whole, EU employment legislation
is driven far more by the interests of
the employee than by those of the employer,
and employers are therefore advised to
take careful account of existing law before
hiring employees, and, having once hired
them, before disciplining or dismissing
them.
The
very tax-efficient schemes existing in
Ireland for business operations do not
(and could not) incorporate any departure
from EU law in terms of labour legislation.
To a certain extent, it is possible to
by-pass EU labour law by using short-term
contracts, personal service companies
and other devices, but expert professional
advice is necessary before embarking on
any such adventures.
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Ireland
Social Insurance Contributions (PRSI)
Employers pay 8.5% of an employee's pay
as social insurance contribution up to
Euros 356 weekly pay, and 10.75% thereafter.
Employees
pay 6% (4% plus 2% health levy) plus 2%
as a pension contribution.For employees
the first EUR127 per week of earnings
is exempt from PRSI contributions but
not the health levy. After annual earnings
of Euros 46,600, the rate falls to 2%.
PRSI
is charged on employment earnings including
most benefits.
For self-employed persons and certain
directors a rate of 5% applies to all
income.
Non-Irish
nationals can obtain exemption from social
insurance contributions if they work temporarily
in Ireland (for EU nationals, they must
demonstrate that they continue to pay
such contributions in their home state).
More
detailed information on Pay-Related Social
Insurance (PRSI) can be found at the website
of the Department
of Social and Family Affairs
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Ireland Work Permits
Nationals of European Union member states
have free right of movement in Ireland.
Nationals of other states wishing to work
in Ireland require a work permit from
the Department of Enterprise, Trade and
Employment. The Department is obliged
to issue permits when the employee has
a key role, or is transferring from an
international company which has or intends
to have a presence in Ireland. However,
the rules have recently been relaxed for
certain classes of foreign national, including
inter-corporate transferees, the spouses
of EU nationals, and non-EU nationals
who have had a child born in Ireland.
In these cases letters from the employee's
foreign employer, and the prospective
Irish employer are now sufficient to immigrate
for one year. However it is advised to
check the current situation before attempting
to immigrate.
Furthermore,
the Republic has been held up, alongside
Sweden and the United Kingdom, as an example
to 'older' EU member states which have
not yet opened their labour markets to
workers from their 'newer' - mainly Eastern
European - counterparts, of how an influx
of new workers can be both manageable
and beneficial.
New
economic migration and employment permit
arrangements for workers outside of the
European Economic Area came into effect
in Ireland from February 1, 2007.
The four categories of permits that have
been introduced include: the Green Card
Scheme; the Work Permit; the Intra Company
Transfer Permit; and Spousal and Dependant
Permits. The Employment Permits Act passed
by the Oireachtas last year, together
with the Employment Permits Act 2003,
provide the statutory basis for the new
schemes.
The Green Card scheme, introduced for
the first time in Ireland, is aimed at
occupations where the country has "strategically
important high level skills shortages,"
such as in the Information and Communications
Technology, Health Care, Construction,
Engineering, Financial Services and Research
sectors. The scheme is available for an
extensive list of occupations with annual
salaries of EUR60,000 (US$77,630) and
above, and for a specified list of occupations
with salaries between EUR30,000 and EUR60,000.
No labour market test is required for
the Green Card applications, so advertising
with FAS/EURES and newspapers is not necessary.
Green Cards are issued for two years initially
and normally lead to the granting of permanent
or long-term residence after that. Green
Card holders are also permitted to bring
their spouses and families to join them
immediately. The Green Card Scheme replaces
the previous Work Visa/Work Authorisation
scheme, which has been discontinued.
The new Work Permit is mainly for non-Green
Card occupations in the EUR30,000 to EUR60,000
annual salary range. It is only granted
in exceptional circumstances for occupations
with salaries below EUR30,000. In order
to establish that vacancies which are
the subject of Work Permit applications
cannot be filled by Irish or other European
nationals, as required by our EU `Community
preference’ obligations, they are
the subject of a "rigorous"
labour market needs test. This test includes
both advertising with FAS and the European
Employment Services, or EURES, and in
local and national newspapers. Work permits
are granted initially for a period of
2 years, and then for a further period
of up to 3 years.
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