Moving your peopleto your own company.
In most cases the employment transfers automatically under Irish transfer rules, which keeps service, terms and accrued leave intact. Teamed plans the date and runs both payrolls through the change.
Two routes, one of them worse
How do people move from an employer of record to your company
There are two ways to do this and they are not equivalent, whatever a spreadsheet says. One preserves everything your people have built up. The other quietly throws it away and hopes nobody notices for a year.
Ireland has transfer of undertakings rules, the same family of law that operates across the European Union. Where they apply, the employment moves to the new employer automatically, on the same terms, with continuous service intact. Nobody resigns. Nobody is rehired. The contract simply has a different employer on it.
The alternative is to end the employment and start a new one. It sounds tidier and it is faster to arrange, which is exactly why it gets chosen. It also resets the clock on every right that depends on length of service.
Why continuous service is the whole argument
Two of the most important protections in Irish employment law depend on how long somebody has worked for you, and both restart if you break the chain.
Generally needs a year of continuous service. Break it and a two year employee is back to being a new starter with none of it.
Entitlement builds with service. A resign and rehire wipes what has accrued and starts it again from zero.
What moves and what does not
What actually transfers
Where a transfer applies, the terms move with the person. Salary, notice, holiday entitlement, accrued but untaken leave, contractual benefits and the start date all carry over. So do liabilities. A grievance that existed the day before the transfer still exists the day after, now against you.
Pension is the one significant carve out. Occupational pension rights are treated differently from the rest of the package, so a pension arrangement does not simply follow the employee across. It needs designing rather than assuming, and it is the item most often discovered late.
There is also a consultation duty. Employees have to be told about the transfer, why it is happening and what it means for them, in good time before it happens. In practice that means telling people well ahead rather than announcing it with the payslip.
Timing
Pick the date around payroll, not around the paperwork
The cleanest transfer lands on the first day of a pay period. Move somebody mid month and two employers each run a part period, which means two payslips, two sets of deductions and a much higher chance of somebody being paid twice or not at all.
Confirm the entity can employ
The company exists, the employer registration is live and the bank account can pay salaries. None of this can be rushed on the day.
Tell people, properly
Written information on what is changing, what is not, and the date. This is a duty rather than a courtesy, and it is better done early.
Mirror the terms
New contracts on the same terms with the original start date carried over. Anything you change here needs a reason of its own and usually consent.
Transfer on the first day of a pay period
The old payroll closes, the new one opens. Leave balances carry across as they stood the night before.
Check every payslip by hand, once
Tax credits and cumulative figures are where errors surface, and they are far cheaper to fix in month one than in month six.
Worth saying plainly
This is the step where doing it cheaply costs the most
A resign and rehire can be arranged in a fortnight and looks like a saving. What it actually does is remove protections your people already hold, without most of them realising until the day it matters.
If your timeline is too tight to do this properly, the better answer is usually to stay where you are for another quarter and move cleanly. An employer of record is a fair place to wait, not a lesser one.
Teamed's employer of record in Ireland is a flat €560 per employee per month, with zero FX mark-up in any currency pairing and one invoice at the end of it. Contractors, employer of record and your own entity all run on one platform, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work, not a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it for Ireland.
Who carries it
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for corporation tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it.
In Ireland that matters a little more than elsewhere, because Teamed employs through its own Irish entity rather than a partner. The people who would run your company are the people already running ours.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Questions about moving people across
Do employees have to agree to the move?
Where the transfer rules apply the employment moves automatically, so it does not depend on each person agreeing. They do have to be informed, and an employee can object, which has consequences worth understanding before you start.
Does their start date change?
No. Continuous service carries across, so the original start date stays. That is the main reason to use a transfer rather than a resign and rehire.
What happens to unused holiday?
Accrued leave moves with the employee as it stood on the transfer date. It is not paid out and it does not reset.
Can we change terms at the same time?
Changing terms because of the transfer is the thing these rules exist to prevent. Changes need a reason of their own and, usually, consent.
What about pensions?
Occupational pension rights are treated differently from the rest of the package and do not simply follow the employee across. Design that part deliberately rather than assuming it transfers.
Sources
- Irish transfer of undertakings regulations, employee rights on a transfer
- Unfair Dismissals Acts, the service requirement
- Redundancy Payments Acts, service and entitlement
The rest of the Ireland guides
Looking for a job in Moving From Eor To Your Own Entity yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
