This article is for Irish startup founders and early-stage CEOs who are preparing to hire their first employee, as well as small-business HR managers responsible for compliance. It is for readers who need practical, step-by-step guidance on legal obligations rather than a high-level overview.
After reading, you will know how to register as an employer with Revenue, draft the required 5-day statement and full contract, implement the essential day-one policies, and maintain proper onboarding records. You will also understand ongoing compliance tasks such as payroll reporting, policy updates, and handling inspections, so you can hire confidently and avoid legal pitfalls.
Key takeaways
Register with Revenue as an employer via PREM before making any payment to avoid payroll and compliance risks.
Issue a written 5-day statement of core employment terms within five days of the start date, and a full contract within one month.
Establish the minimum set of day-one policies — grievance, dignity at work, sick and annual leave, remote-working, and data protection — to meet Irish legal requirements.
Accurately classify the hire as an employee or contractor, as misclassification can trigger back-tax, penalties, and personal liability.
Laura Ryan is a practising Barrister at the Bar of Ireland. She graduated from the Honourable Society of King’s Inns in 2024, having previously qualified and practised as a Chartered Accountant in a big four accounting firm.
What are the employer registration obligations before hiring?
You must register with Revenue as an employer before making any payment, using PREM registration through MyEnquiries in the Revenue Online Service. Registration provides an employer number and enables you to deduct PAYE, PRSI, USC and other taxes, and it is required to run payroll legally.
How many day-one policies are required and which ones?
You need a minimum set of day-one policies: a grievance and disciplinary procedure, a dignity at work policy covering bullying and harassment, sick and annual leave policies, a remote or hybrid working policy, and a data protection policy.
What documents must be provided to a new employee within the first five days?
You must issue a written 5-day statement of core employment terms within five days of the start date, covering the parties' names, employer address, contract duration, pay rate and period, expected hours, and job title. A full written contract must follow within one month.
Why is it important to document the employee versus contractor decision?
Documenting the employee-versus-contractor decision in a short memo matters because Revenue may challenge the classification. The memo provides the first line of defence in an audit or dispute, helping reduce the risk of back-tax, interest, penalties, and founder liability.
