Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.
For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.
For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.
As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.
While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.
A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.
Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Ireland can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Ireland, you have to:
If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Ireland.
An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.
An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.
Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.
At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.
Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:
Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.
Paying employees in Ireland is not the same as paying workers in your own country. Employees have to be paid using Ireland’s employment and payroll standards.
This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.
Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.
After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:
One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.
Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.
Outside of EORs acting as the full admin employer, many also provide remote payroll.
For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.
We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.
A full-time workweek is 39 hours. A workweek cannot exceed 48 hours on average over a 4-month period.
Ireland does not have statutory overtime pay, however, is sometimes outlined in a collective bargaining agreement or is negotiated in the employment contract.
Salaries are paid either on a weekly or monthly basis. Employees should be paid by the last day of the month.
There are no provisions in the law regarding 13th salaries.
PTO is calculated by the:
There are 9 public holidays.
No statutory law is in place that requires employees to receive paid sick leave, but employers should decide on their own sick leave policy and enact it in the employees’ contract or terms of employment.
Employers must submit a written statement to an employee within two months of employment that provides information on the terms and conditions related to incapacity to work due to sickness or injury.
If an employee is ill during annual leave, they may obtain a medical certificate so the sick days will not count towards annual leave days.
Mothers are entitled to 26 (156 days) weeks of maternity leave and can receive an extra 16 weeks of unpaid leave, which begins immediately after the end of maternity leave. Mothers must take at least 2 weeks before the expected birth and at least 4 weeks after. Entitlement for paid leave depends on if the worker has contributed enough so social insurance, as employers are not obligated to pay.
To receive benefits employees must contribute:
The weekly standard rate is 245.00 EUR.
2 weeks of paid leave is given during any time within 26 weeks of the birth or adoption.
Those eligible for paternity leave are:
To receive benefits an employee must have contributed to social insurance:
Parents of children age 12 years or younger are entitled to 26 weeks of unpaid leave.
If an employee has been employed for at least 13 weeks an employer should provide the statutory minimum of 1-week dismissal notice unless stated otherwise within the written contract.
If an employee feels the dismissal is unfair, they may ask for a written statement reasoning the dismissal. The statement should be provided within 14 days of the request.
When employment ends employees shall receive any money owed and a payslip.
The notice period in Ireland is:
When dismissed they have the right to receive wages owed to them for work completed. They are also to receive payment for annual leave earned but not taken.
Employers are not required to pay severance to employees who have been terminated.
For cases of redundancy employees are eligible to receive:
Redundancy pay is set to a maximum limit of 600 per week. A worker with 5 years of consecutive employment is eligible for 11 weeks redundancy pay.
The probationary period can last from 6 to 12 months.