Your First Employee: Employment Contracts and Written Terms in Ireland

Gráinne owns a hair salon in Wexford. Business is busy enough that she has offered a job to Leah, a stylist, starting next Monday. It is Thursday evening when Gráinne realises she has no contract, no template and no idea what she is legally required to give Leah.

This guide walks through an employment contract in Ireland for a first hire: what is required on day 5, what is required by the end of the first month, the clauses worth adding, and the payroll steps before the first payday.

Do you legally need an employment contract in Ireland?

Is it law to have a contract of employment? A contract exists as soon as someone agrees to work for you for pay, even if nothing is written down. The contract itself can be partly verbal.

What the law does require is a written statement of the main terms. The employer must sign and date it, and give it to the employee within set deadlines. So the practical answer to do I need a contract of employment is yes: you need at least the written statements, and a full written employment contract in Ireland is the simplest way to cover them.

You must keep a copy for the whole employment and for at least a year after it ends.

Day 5: the core terms

Within five days of the start date, you must give the employee a written statement of the core terms. The Workplace Relations Commission (WRC) lists:

• Full names of employer and employee
• The employer's address
• The place of work, or a note that there is no fixed place
• Job title or a short description of the work
• Start date
• Probation period and its conditions, if there is one
• Expected end date, if the job is temporary or fixed-term
• Pay rate or how pay is calculated, how often and how it is paid
• Expected normal hours per day and per week
• Terms on hours, including overtime
• Your policy on tips and service charges, if relevant

For Gráinne, that means Leah's day-5 statement must reach her within five days of Monday's start, so by the end of her first week.

Month 1: the full written statement

Within one month of the start date, the employee must receive a full written statement covering the rest of the terms. This includes:

• When pay is made (pay intervals)
• Paid leave, including annual leave and public holidays
• Sick pay terms
• Pension arrangements
• Notice periods for both sides
• Any collective agreements that apply
• Training the employer provides
• Information on unpredictable work patterns, where relevant
• The body that receives social insurance contributions

These rules were updated in 2022, which shortened the old two-month deadline to one month and added several items. Many older templates online still show the old rules, so check yours.

This is the short answer to what should be included in a contract of employment: everything above, plus the clauses below.

Probation, notice and other clauses worth adding

Probation: a probation period can be up to 6 months. In exceptional cases it can be extended, up to a 12-month maximum.

Notice: minimum notice depends on service:

You can agree longer notice in the contract, but not shorter.

Disciplinary and grievance procedures: you need written procedures and should give a copy at the start. Within 28 days of starting, you must give the employee written details of the procedure that applies before dismissal.

Other clauses: many employers add confidentiality, outside work and staff benefits. If you plan to give small gifts or vouchers, read our guide to the small benefit exemption first.

Before the first payday: payroll and Revenue

The contract is one part of a first hire. Before the first payday, you also need to:

• Register as an employer with Revenue
• Get the employee's PPSN
• Set up payroll so tax, PRSI and USC are deducted correctly
• Check the right PRSI classes for your staff and any directors

Then there is auto-enrolment. Since 1 January 2026, employees aged 23 to 60 earning €20,000 or more a year, who are not already paying into a pension through payroll, are enrolled automatically. Your payroll needs to handle this from the start.

Our payroll services set all of this up for first-time employers. The first-year compliance calendar shows how payroll fits around your other deadlines.

What happens if you get it wrong

If you do not provide the written statements, the employee can complain to the WRC. The WRC can award compensation of up to four weeks' pay if the complaint is upheld. Employers can also face more serious penalties for breaching the day-5 rules.

Protect yourself by keeping:

• A signed and dated copy of each statement
• Proof of when you gave it, such as an email with the date

Gráinne sent Leah her day-5 statement by email on Wednesday of her first week, and the full contract two weeks later. Both are saved in Leah's personnel file.

Frequently Asked Questions

Getting ready to hire?

Abbey Blue Formations sets up payroll for first-time employers in Wexford and across Ireland, so your first payday runs smoothly. If you have not set up your company yet, start with our formation calculator. To talk to us about hiring, click here.