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Republic of Ireland Payroll Overview Year End 31 st December
Republic of Ireland
Payroll Overview
Year End 31st
December
Agenda• Country overview• Business culture• Glossary of terms and abbreviations • Employer obligations• Build up to gross pay• Gross to net calculation• Types of Leave• Expenses and benefits• Net pay and making payments to employees• How to read a payslip• Special types of employees/employments• Year end• Record keeping
COUNTRY OVERVIEW
Facts about Ireland• Ireland (Éire) is in the North Atlantic to the west of Great Britain
• Its time zone is GMT (UTC +0) and it operates Daylight Saving Time (UTC +1) between March and October
• The population is c4.6m
• The currency is Euro €
• The capital and largest city is Dublin, located in the eastern part of the island, whose metropolitan area is home to around a third of the country's 4.6 million inhabitants
• Irish is the "national language" according to the Constitution, but English is the dominant language
Facts about Ireland• The three most famous symbols of Ireland are the green Shamrock, the harp,
and the Celtic cross.
• 88% of Irish citizens are nominally Roman Catholic. The Republic of Ireland has one of the highest rates of church attendance in the Western World (a round 45% of regular Mass attendance
• Ireland is the only EU country where abortion is still illegal (except to protect the mother's life).
• Ireland has won the Eurovision Song Contest seven times (in 1970, 1980, 1987, 1992, 1993, 1994 and 1996), more than any other country.
• One of the most successful beer brands worldwide, Guinness was once the largest brewery in the world (from 1914), and remains the largest brewer of stout in the world.
BUSINESS CULTURE
Business Culture
• Professor Geert Hofstede conducted perhaps the most comprehensive study of how values in the workplace are influenced by culture. He analysed a large database of employee values scores collected by IBM, between 1967 and 1973, covering more than 70 countries,
• National Culture is about the value differences between groups of nations and/or regions.
• Using research data from a multinational company (IBM) with subsidiaries in more than 60 countries, he identified four largely independent dimensions: Power Distance (large versus small), Uncertainty Avoidance (strong versus weak), Individualism versus Collectivism and Masculinity versus Femininity. The relative positions of 40 countries on these four dimensions were expressed in a score on a 0-100 point scale. Replications by Hofstede and other researchers have extended the number of countries covered to 76
Please bear in mind that many international organisations will have their own culture
www.geert-hofstede.com
Business CulturePower DistanceThis dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.At 28 Ireland sits in the much lower rankings of PDI – i.e. a society that believes that inequalities amongst people should be minimized. Within Irish organisations, hierarchy is established for convenience, superiors are always accessible and managers rely on individual employees and teams for their expertise. Both managers and employees expect to be consulted and information is shared frequently. At the same time, communication is informal, direct and participative.
www.geert-hofstede.com
Business CultureIndividualismThe fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.At a score of 70 Ireland is an Individualist culture. In the business world, employees are expected to be self-reliant and display initiative. Also, within the exchange-based world of work, hiring and promotion decisions are based on merit or evidence of what one has done or can do.
www.geert-hofstede.com
Business CultureMasculinityA high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organisational life. A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine). At 68 Ireland is a Masculine society – highly success oriented and driven. Behavior in school, work, and play are based on the shared values that people should “strive to be the best they can be” and that “the winner takes all”. The Irish are proud of their successes and achievements in life, and it offers a basis for hiring and promotion decisions in the workplace. Conflicts are resolved at the individual level and the goal is to win.
www.geert-hofstede.com
Business CultureUncertainty AvoidanceThe dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the score on Uncertainty Avoidance.At 35 Ireland has a low score on Uncertainty Avoidance. Ideas are important, being imaginative is appreciated. Irish businesses embrace creativity and are always looking for new ways to approach problems. Making a point with practical facts is more appreciated than the use of too much technical language.
www.geert-hofstede.com
Business CultureLong Term Orientation
This dimension describes how every society has to maintain some links with its own past while dealing with the challenges of the present and future, and societies prioritise these two existential goals differently. Normative societies. which score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.
With a low score of 24, Ireland has a culture classified as normative. People in such societies have a strong concern with establishing the absolute Truth; they are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results.
www.geert-hofstede.com
Business CultureIndulgence
One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized. Without socialization we do not become “human”. This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”. Cultures can, therefore, be described as Indulgent or Restrained.
With a high score of 65, it is clear that Irish culture is one of Indulgence. People in societies classified by a high score in Indulgence generally exhibit a willingness to realise their impulses and desires with regard to enjoying life and having fun. They possess a positive attitude and have a tendency towards optimism. In addition, they place a higher degree of importance on leisure time, act as they please and spend money as they wish.
www.geert-hofstede.com
Business Culture
• The Irish identify themselves more with their counties than with the cities from which they come
• The counties are subdivisions of the ancient Provinces of Ireland that were historically based on the traditional geographical areas.
• Today, the division of the country into counties is still important and has been adopted by cultural and sporting organisations that organise their activities along county lines
• Corporate Social responsibility is a big deal in Ireland and Chambers Ireland are always fostering best practice and have an awards process
• The relaxed attitude to time can sometimes affect deadlines, but effective planning and communication should help manage potential issues
• Formal business attire in conservative colours works best
Business Culture• Rural business people will be more open and friendly than urban colleagues
and you should get results by matching your style to theirs
• The Irish are generally very polite and warm. They love their country and enjoy life as it comes
• Family is very important and working life will be adjusted to meet the needs of the family
• The Irish are very sociable and conversation will be permeated with jokes
• Similar to most countries in Western Europe most verbal agreements will be followed by formalised written agreements, signed by both parties
• Personal space is important in Ireland and touching (other than a warm handshake) is not considered appropriate
• Introductions are seen as the way business goes round in Ireland
GLOSSARY OF TERMS AND
ABBREVIATIONS
Glossary of Terms and Abbreviations• AVCs Additional voluntary contributions
• BIK Benefit in kind
• DIRT Deposit Interest Retention Tax
• DSP Department of Social Protection
• EWB Expected week of birth
• OMV Original Market Value
• PAYE Pay As You Earn
• PPS No. Personal Public Service Number
• PRSA Personal retirement savings account
• PRSA Personal retirement savings account
• PRSI Pay Related Social Insurance
• RAC Retirement annuity contract
• USC Universal Social Charge
EMPLOYER OBLIGATIONS
Employer Obligations• As an employer you are required to register for on-line services• ROS is the Revenue’s internet facility which provides a quick and secure facility
to register for tax, pay tax liabilities, file tax returns, access your tax details and claim repayments
• The facilities are available 24 hours a day, 365 days a year• You will also benefit from an extension to deadlines for paying tax and filing
returns where you both pay and file using ROS• Further information on Revenue’s online service can be found at
http://www.revenue.ie/en/online/ros/index.html
Employer Obligations• There are a limited number of customers where paper registration applications
are still accepted
• Applicants in these categories should continue to submit paper applications to their local Revenue District Office
• Paper applications received where the applicant is required to submit the application on-line will not be processed and the paper application will be returned for completion on-line
Employer ObligationsMore about ROS:
The main features of ROS include facilities to:
• File returns online
• Make payments by Debit and Credit Cards, debit instruction or by online banking for Income Tax only
• Obtain online details of personal/clients Revenue accounts
• Calculate tax liability
• Conduct business electronically
• Claim repayments
Employer ObligationsPAYE
• The Pay As You Earn (PAYE) system is a method of tax deduction under which an employer calculates and deducts any income tax due each time a payment of wages, salary etc. is made to an employee
• In addition, employers are obliged to calculate and deduct any liability to Pay Related Social Insurance (PRSI) and income levies
• You must register for PAYE/PRSI if you pay:
– €8.00 per week (€36.00 a month) or more, to an employee who has only one employment
– €2.00 per week (€9.00 a month) or more, to an employee who has more than one employment
Employer ObligationsPAYE
• A company must register as an employer and operate PAYE/PRSI on the pay of directors even if there are no other employees
• As well as PAYE and PRSI employers must calculate and deduct the Universal Social Charge (USC) and any other deductions requested by Law
• The income tax year commences on 1 January and ends on the following 31 December
– Week 1 is the period from 1 to 7 January inclusive; week 2 is the period from 8 to 14 January inclusive, etc., month 1 is the period from 1 to 31 January inclusive; month 2 is the period from 1 to 28/29 February inclusive, etc.
Employer ObligationsDetermining the employment status of an individual
• The law makes a distinction between a contract of employment (sometimes referred to as a 'contract of service') and a contract for service
• A contract of employment applies to an employee-employer relationship
• A contract for service applies in the case of an independent contractor
• A worker’s employment status is not a matter of choice
– It depends upon the terms and conditions of the relevant engagement
– In most cases it will be clear whether an individual is employed or self-employed
– It may not always be so obvious…
Employer Obligations
Determining the employment status of an individual
• It is important that the job as a whole is looked at including working conditions and the reality of the relationship, when considering the guidelines
• The overriding consideration or test will always be whether the person performing the work does so "as a person in business on their own account“
• Is the person a free agent with an economic independence of the person engaging the service
Employer ObligationsCriteria used to determine if an individual is an employee: While all of the following
factors may not apply, an individual would normally be an employee if they:
– Are under the control of another person who directs as to how, when and
where the work is to be carried out
– Supply labour only
– Receive a fixed hourly/weekly/monthly wage
– Cannot sub-contract the work
– Do not supply materials for the job
– Do not provide equipment other than the small tools of the trade – this might
not have a significant bearing in determining status
Employer ObligationsCriteria used to determine if an individual is an employee cont.
• Are not exposed to personal financial risk in carrying out the work
• Do not assume any responsibility for investment and management in the business
• Do not have the opportunity to profit from sound management in the scheduling of engagements or in the performance of tasks arising from the engagements
• Work set hours or a given number of hours per week or month
• Work for one person or for one business
• Receive expense payments to cover subsistence and/or travel expenses
• Are entitled to extra pay or time off for overtime
Employer ObligationsCriteria used to determine if an individual is self-employed
While all of the following factors may not apply to the job, an individual would normally be self-employed if they:
• Own their own business
• Are exposed to financial risk
• Assume responsibility for investment and management in the enterprise
• Have the opportunity to profit from sound management in the scheduling and performance of engagements and tasks
• Have control over what is done, how it is done, when and where it is done and whether they do it personally or not
• Are free to hire other people
Employer ObligationsCriteria used to determine if an individual is self-employed cont.
• Can provide the same services to more than one person or business at the same time
• Provide the materials for the job
• Provide equipment and machinery necessary for the job
• Have a fixed place of business where materials equipment etc. can be stored
• Cost and agree a price for the job
• Provide their own insurance cover e.g. public liability cover, etc.
• Control the hours of work in fulfilling the job obligations
Contact the Revenue if you have any difficulties establishing anyone’s employment status
PAYE Obligations
Employer Obligations
Employer ObligationsYou must send a monthly remittance to Collector General (P30) via ROS
• The total of:
– the tax deducted from the pay of all employees less any tax refunded to them,
plus
– the total PRSI contributions (both the employee and employer contributions), and
– The total USC deducted from the pay of all employees
• This should be remitted to the Collector General within 14 days from the end of the
income tax month during which the deductions were made
• Where an employer who files their returns and associated tax payments via ROS the
deadline is extended from 14th to 23rd of the following month If the returns are late
then the date used for penalties/interest will be 14th
Employer Obligations
Making payments by Direct Debit
• Employers can apply to pay PAYE and PRSI by monthly instalments, the amounts should be large enough to cover the on-going liability
• To arrange contact: Direct Debit, Collector General, Sarsfield House, Francis Street, Limerick. Telephone: 1890 20 30 70, + 353 61 48 80 00, E-mail: [email protected]
• A receipt will issue from the Collector General whether payment is made by Bank Giro or sent to the Collector General
Employer ObligationsAnnual Tasks
• Submit Annual P35L by 15th February for the year ended 31st December
• P35L: Details in respect of employees with PPS numbers
• P35L/T: Details in respect of employees where the PPS number is not known
– The full name, private address, date of birth and mother's surname at birth must be provided in respect of these employees
• Paper Returns: If you are filing on paper the returns should consist of an original P35 Declaration, an original P35LF if relevant, original P35L(s) and original P35LT(s)
– The declaration must be signed, dated and provide a contact phone number
Employer Obligations
The P35LF is used to record:
• Taxable Benefits i.e. total benefit in kind for all employees including information in relation to medical insurance
• Number of employees contributing to the various pension products
• The total amounts of employee contributions
• The total number of employees for whom the employer made a contribution
• The total amount for employer contributions
All employees who were employed during that tax year, including leavers, even if they had no tax liability in the year, must be included on the P35L
Employer Obligations
• Issue P60 end of year forms to employees by the 15th February
• The P60 contains details of pay as well as the income tax, PRSI and USC that has been deducted and paid to Revenue
• It contains details of the each taxpayer's taxable income and deductions made by PAYE, PRSI, health levy, and USC for that year
• Proprietary company directors must also fill in a "Form 11" or a "Form 12 Directors" at end of the tax year
• If the taxpayer wants their liability reviewed for any year they must send the first part of the relevant P60 to their Revenue office
• If they need to claim any Social welfare benefit they should send the second part to the DSP as evidence they have paid PRSI
EMPLOYMENT LAW
Organisation of
Working Time Act
Working Time• An employee is entitled to a rest period of not less than 11 consecutive hours
in of 24 hour period they carry out work for their employer
• An employee is entitled to a break of at least 15 minutes where they have worked for a period of 4 and a half hours
• And an employee is entitle to a break of at least 30 minutes where they have worked for 6 hours (the 15 minute break above can be included in this time)
• The Minister may insist on a longer break, depending on the classification of employee, and the break can be increased to be up to one hour in total
• A break allowed to an employee at the end of the working day shall not be regarded as satisfying the requirement under the Act i.e. the break must be taken during the work period
Working Time• An employee shall be granted a rest period of at least 24 consecutive hours in
each period of 7 days
• However an employer may grant the employee, in the next following period of 7 days, 2 rest periods each of least 24 consecutive hours lieu of the rest period at the end of the first 7 days
• This is a legal minimum and may be increased as laid out in any terms and conditions of employment
• Unless otherwise stated in a contract of employment, one of the rest periods should be on a Sunday or, if the rest period is more than 24 hours, should include a Sunday
Working Time• An employee who is required to work on a Sunday will be compensated by
their employer, unless the contract already provides for this, by the following means unless the contract states that the normal pay received compensates for working on the Sunday. Compensation will be by:
– Payment of an allowance as is reasonable and having regard to all the circumstances, or
– By an increase in the employee's rate of pay an amount reasonable for the circumstances, or
– By granting the employee such paid time off as is reasonable having regard to all the circumstances, or
– By combination of two or more of the above unless a collective agreement stipulates another type of compensation
Working Time
• An employer shall not permit an employee to work, in each period of 7 days, more than an average of 48 hours calculated over a period not exceeding:
– 4 months, or
– 6 months if 4 months is not practical (i.e. where there have been significant fluctuations)
• The days or months in the reference period must be consecutive days or months
Working Time
A reference period should not include:
– Annual leave
– Absences from work authorised under the Maternity Protection Act or the
Adoptive Leave Act
– Sick leave
• Where an employee is employed in an activity and the weekly working hours of
which vary on a seasonal basis, or
Working Time
A reference period should not include:
• It would not be practicable to use a reference period of 4 or 6 months because of
technical considerations or the conditions under which the work is organised or
otherwise of an objective nature
– In this circumstance a collective agreement that, for the time being has effect
in relation to the employee, and which stands approved of by the Labour
Court under section 24 may specify a work reference period in relation to the
employee of more than 4 or 6 months but not more than 12 months
Collective Bargaining
Collective Bargaining• The Industrial Relations (Amendment) Act 2015 came in to force on the 1st August
2015. This Act amended the rules on collective bargaining in Ireland, reintroduces
Registered Employment Agreements (REAs), introduced the new concept of
Sectoral Employment Orders (SEOs), and amended the remit of the Agricultural
Joint Labour Committee (JLC).
• Prior to the act employers were not obliged to recognise trade unions and were
not obliged to engage with trade unions in collective bargaining. Ireland operates a
‘voluntarist’ approach to industrial relations so that while employees have a
constitutional right to form trade unions, employers had an equal constitutional
right ‘not’ to recognise trade union.
• Collective bargaining with trade unions could only take place in Ireland where the
employer recognised the trade union as a legitimate bargaining representation.
Collective Bargaining• The Industrial Relations (Amendment) Act 2015 contains three main features:
– it reintroduced a mechanism for the registration of employment agreements (“REA’s”);
– it provided a new statutory framework for the Labour Court to examine and establish rates of pay and conditions of employment in certain sectors;
– it amended the law in relation to collective bargaining and the power of the Labour Court to make legally binding orders regarding terms of employment against employers who do not have collective bargaining arrangements.
Collective Bargaining• The Act introduced a new definition of collective bargaining, which comprises
voluntary engagements or negotiations by an employer with either:
(1) a trade union of workers; or
(2) an “excepted body”. In addition, any engagements or negotiations must have
the object of reaching an agreement on wages or other conditions of
employment. Such a referral cannot be substantively examined by the Labour
Court where an employer engages in collective bargaining.
• A de minimus type threshold rule also exists. The Labour Court cannot usually
conduct an investigation where there is an insignificant number of employees
involved in the trade dispute, taking into account the total number of workers
employed by the employer in that particular category.
Collective Bargaining• The Act does not require an employer to recognise or to negotiate with trade
unions.
• The government has also stated that the “voluntarist” tradition of industrial
relations in Ireland has been respected.
• The Act was a major development for non-unionised employers and restricts their
ability to disregard trade unions pressure.
• Trade unions can refer a valid trade dispute with non-unionised employers to the
Labour Court for adjudication.
• Where an employer is engaged in collective bargaining, either with a trade union
or an excepted body, the employer will be exempt from the provisions.
Collective Bargaining• In addition to the collective bargaining issues, the Act also provided for the introduction of
sectoral employment orders which replaces the previous system of sectoral REA’s.
• The statutory framework gives provision for a trade union of workers (and/or an organisation of
employers) which is substantially representative of workers, or employers of a particular group
in an economic sector, to request the Labour Court to examine the applicable pay, pension and
sick pay entitlements.
• The trade union must be substantially representative of workers in that particular sector in
order for the Labour Court to undertake any examination. The Labour Court can make a
recommendation to the Minister on pay, pension and sick pay matters and the Minister in turn
can then make an order, after a draft has been approved by each House of the Oireachtas.
• The Act provides guidance in relation to the principles which must be considered by the Labour
Court in making any recommendation to the Minister.
Collective Bargaining• To reduce risks of victimisation of referring employees, the Act contains a
number of protections such as
– individual employees do not have to be identified in order to initiate a claim and the chief officer of the trade union can make a statutory
declaration identifying the number of employees involved and other
relevant details;
– employees can seek interim relief from the Circuit Court where an employee is claiming unfair dismissal connected with the existence of
the trade dispute; and
– protection from victimisation through dismissal for being involved in a
trade dispute.
Employment Types and Contracts
Employment Types and Contracts• In Ireland if an individual works for an employer for a regular wage or salary they
automatically has a contract of employment. While the complete contract does not have to be in writing, an employee must be given a written statement of terms of employment within 2 months of starting work.
• The majority of employees work under open-ended contracts of employment. In other words, the contract continues until such time as the employer or employee ends it.
• Other forms of employment contracts would include:
– A fixed-term contract (ending on a specified date)
– A specified-purpose contract (ending when a specific task is completed)
• The contract of employment should include some or all of the following elements:
• In addition, custom and practice in a particular workplace may form part of a contract. An example would be a particular level of overtime pay for employees.
Employment Types and Contracts• The terms that the courts say are in every contract of employment.
– Examples include the duty of every employer to provide a safe workplace and the duty of every employee to carry out the job to the best of his/her ability. This part of the contract is occasionally referred to as "common law".
• Terms that must be part of the contract as a result of laws passed by the Dail.
– Examples include the right to take maternity leave.
– Terms that the Irish Constitution states must be in every contract,
– for example, the right of an employee to join a trade union.
• Collective agreements
• Joint Labour Committee Regulations
• EU laws
Employment Types and Contracts• The Terms of Employment (Information) Acts 1994–2014 provide that an
employer is obliged to provide an employee with a written statement of terms of employment within the first 2 months of the commencement of employment.
• The statement of terms must include the following information:
– The full name of employer and employee
– The address of the employer
– The place of work
– The title of job or nature of work
– The date the employment started
– If the contract is temporary, the expected duration of the contract
– If the contract of employment is for a fixed term, the details
Employment Types and Contracts– Details of rest periods and breaks as required by law
– *The rate of pay or method of calculation of pay
– The pay reference period for the purposes of the National Minimum Wage Act 2000
– *Pay intervals
– *Hours of work
– *That the employee has the right to ask the employer for a written statement of his/her average hourly rate of pay as provided for in the National Minimum Wage Act 2000
– *Details of paid leave
– *Sick pay and pension (if any)
– *Period of notice to be given by employer or employee
Employment Types and Contracts– *Details of any collective agreements that may affect the employee’s terms of
employment
• *In the case of these items instead of giving each employee the details in writing, the employer may refer an employee to other documents, for example, a pension scheme booklet or a collective agreement, provided that the employee has easy access to such documents.
• The statement of terms must indicate the reference period being used by the employer for the purposes of the calculation of the employee's entitlements under the National Minimum Wage Act 2000. (Under that Act the employer may calculate the employee's minimum wage entitlement over a reference period that is no less than one week and no greater than one month).
• The statement of these terms must be signed and dated by the employer, there is no requirement for the employee to sign it. Employer’s must keep a copy during the period of the employee’s employment and for at least a year after it ceases.
Employment Types and Contracts• Some employers add in specific provisions that limit the ability of employees to
work in a certain sector, with certain suppliers, clients, for a period following termination of employment. There is nothing in employment law that strictly forbids this, but there is no provision in employment law that allows this either.
• Essentially, this is an issue of contract law - that is, the contract of employment signed and agreed between the employer and employee. If you have any concerns about this issue, businesses are strongly advised to seek legal advice from a competent legal professional in advance of issuing a contract.
Employment Types and Contracts• Disciplinary and grievance procedures
• The Workplace Relations Commission has a Code of Practice: Grievance and Disciplinary Procedures states that employers should have written grievance and disciplinary procedures and that they should give employees copies of these at the start of their employment.
• Under the Unfair Dismissals Acts 1977–2015 employers are required to give the employee in written notice of the procedures to be followed before an employee is dismissed.
• This must be done within 28 days of entering the contract of employment.
Employment Types and Contracts• Probationary period
• The contract can include a probationary period and can allow for this period to be extended. The Unfair Dismissals Acts 1997–2007 will not apply to the dismissal of an employee during a period at the beginning of employment when he/she is on probation or undergoing training provided that:
– The contract of employment is in writing
– The duration of probation or training is one year or less and is specified in the contract.
– The above exclusion from the Acts will not apply if the dismissal results from trade union membership or activity, pregnancy-related matters, or entitlements under the maternity protection, parental leave, adoptive leave and carer's leave legislation.
Employment Types and Contracts• Changes to a contract of employment
• Changes to a contract of employment can occur due to a change in the law, but otherwise, changes must be agreed between an employer and the individual.
• The requirement for both the employer's and the employee's consent to changes in the terms of the contract is part of contract law.
Employer Obligations
• Starters
• To commence an employment, ROS users must enter a P45 Part 3 via ROS. On
receipt of a valid P45 Part 3, Revenue will automatically issue an updated P2C
electronically providing the necessary details to allow the employer operate
payroll accurately and a tax credit certificate to the new employee. In such
cases a valid P45 Part 3 minimises the inconvenience to both employer and
employee ensuring the correct deduction of tax and USC.
• If the new employee has not supplied a Form P45 he/she should be asked for
it. Every effort should be made to obtain a P45 from the new employee.
If
Employer Obligations
• Where the new employee has not supplied a Form P45 and has a PPS Number:
•Verify the PPS number•Notify the employee's Revenue office by Form P46 - Notification to Revenue of particulars of a new employee for whom a Tax Credit Certificate (P2C) is required (PDF, 305KB) .•ROS users must enter a P46 using ROS
• In the meantime the emergency basis of tax deduction must be operated
• Where the temporary basis is used, the tax credits and standard rate cut-off point information on the P45 can be used on a week 1/month 1 basis but the previous pay and tax should not be used to operate the PAYE cumulative system. The previous pay and tax will be notified to the employer on the tax credit certificate issued by Revenue.
If
Employer Obligations
• A form P45 Supplement is a notification to Revenue of payments made to a former employee since date of leaving which were not included on the original P45. Where such payments are made it is incorrect to complete another form P45.
• Payments already included in the total pay and tax on the original form P45 should not be included on the P45 Supplement. The form should be completed and sent to Revenue immediately following any such payment being made to a former employee.
• Employers can file forms P45 Supplement through Revenue On-Line Service (ROS).
If
Employer Obligations
• When an employee leaves the employment, is granted a career break or dies while in the employment, the employer should complete form P45.
• When a ceased employee receives an additional payment, which was not included on the original form P45, the employer should complete form P45 Supplement.
• Employers can complete a paper form P45 or file forms P45 through Revenue On-Line Service (ROS). ROS users must enter a P45 using ROS.
• The form P45 is a four-part carbonised form certifying the employee's pay, tax and PRSI contributions within the tax year up to date of cessation.
• In the case of a deceased employee parts 1 to 4 inclusive must be sent directly to the employee's local Revenue office.
If
Employer
Obligations• Form P45
Employer
Obligations• Form P45 Supplement
Visas and Work Permits
Visas and Work Permits• There are 5 types of visas:
• Short stay
• Long stay
• Re-entry
• Transit
• Multiple entry
• Individuals may need a visa to visit Ireland or to transit through on their way to another destination. It is the individuals responsibility to make sure they have the right visa before they travel.
• To check if a visa is needed:
http://www.inis.gov.ie/en/INIS/Pages/check-irish-visa
Visas and Work Permits• There are 5 types of visas:
• Short stay
• Long stay
• Re-entry
• Transit
• Multiple entry
• Individuals may need a visa to visit Ireland or to transit through on their way to another destination. It is the individuals responsibility to make sure they have the right visa before they travel.
• To check if a visa is needed:
http://www.inis.gov.ie/en/INIS/Pages/check-irish-visa
Visas and Work Permits
Visas and Work Permits• Short Stay Visas
• All applicants for a short stay ‘C’ visa (whether for a single entry or multiple entries) must show that they have sufficiently strong family, social or economic ties to a place of residence in a country other than Ireland to assure the visa officer assessing the application that the projected stay in Ireland will be temporary and in accordance with the duration and conditions of the permission granted by the immigration authorities on arrival in Ireland.
• Types of stay include:
– Business
– Conference or event
– Tourist
– Internship
• The maximum stay allowed under a short stay ‘C’ visa is 90 days.
Visas and Work Permits• Long Stay Visas
• Individuals wishing to travel to Ireland for more than 3 months, for example to pursue a course of study, for work or to settle permanently in Ireland with family members who are already resident in Ireland, then they can apply for a long stay ‘D’ visa for a single entry.
• If they are granted a long stay ‘D’ visa and wish to remain in the State for longer than 3 months, or beyond the period of leave granted to them by an Immigration Officer at an Irish port of entry they will be required to register and obtain a residence permit.
Visas and Work Permits• Re-entry Visas
• Individuals are free to leave the State without a re-entry visa.
• A re-entry visa is necessary for travel purposes only.
• If an individual is a visa required national residing in Ireland with a valid permission to remain, they will need a re-entry visa to return to the State if they leave for a short period.
• In order to return to Ireland, the individual must make a new application in their country of origin for an entry visa. The time frame for such an application may be up to 8 weeks. It is strongly advised that individuals obtain a re-entry visa before you leave Ireland.
• The position in relation to emergency appointments is that a limited number of such appointments are available each day to cover an unforeseen event such as the death or serious illness of a family member. The cost of an emergency visa is €60 plus Administration fee of €100.
Visas and Work Permits• Transit Visas
• Nationals of some states or territorial entities are required to be in possession of an Irish transit visa when arriving at a port of entry in Ireland for the purposes of passing through a port (airport, seaport) in order to travel to another state.
• A transit visa does not permit an individual to enter Ireland for any purpose. It only permits them to transit through Ireland in order to reach their destination in another state.
• If the intention is to leave the port at any stage they must apply for a short stay visa in the normal way.
• Individuals must have the relevant visa for their country of destination in their passport before applying for an Irish transit visa.
Visas and Work Permits• Multiple Entry Visas
• A multi entry visa permits an individual to travel to Ireland on a number of occasions during the dates shown on their visa, for short trips only.
• A multi entry visa may be approved in certain circumstances if an individual has no travel history to Ireland, if:
– they need to travel regularly to Ireland on short visits for business meetings,
– while in Ireland on business, they need to travel to another country, returning to Ireland for further meetings, or onward travel, or
– they are travelling to and from another country, via Ireland.
• It is not permitted to use this category of visa to bypass immigration rules governing residency in the State i.e. it is not possible to remain in Ireland for a period of 90 days then seek to re-enter the country for a further period of 90 days.
Useful Links• http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-
definition.html• http://www.citizensinformation.ie/en/employment/employment_rights_and_c
onditions/leave_and_holidays/public_holidays_in_ireland.html• http://www.workplacerelations.ie/en/Publications_Forms/Guide_to_the_Paren
tal_Leave_Acts.pdf• http://www.revenue.ie/en/index.html• http://www.citizensinformation.ie/en/employment/employment_rights_and_c
onditions/contracts_of_employment/contract_of_employment.html• www.irishjobs.ie/careeradvice/understanding-your-payslip/• https://geert-hofstede.com/cultural-dimensions.html
• UK contact for Geert Hofstead [email protected]
Please contact the GPA with questions or to leave feedback, which is always welcome
01277 888 760
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