How Temporary Recruitment Works in Ireland

Quick Answer

Temporary recruitment is a three way relationship. The agency employs the worker, the client business directs the work, and the worker does the job on site.

The four things most people get wrong:

• The agency is the employer for pay, PRSI, holiday pay and most employment law. The client is not.

• Except for unfair dismissal and health and safety, where the law treats the client as the employer.

• Equal treatment applies from day one in Ireland. There is no twelve week qualifying period. That is a UK rule and it does not apply here.

• An agency cannot charge a jobseeker a fee. It is illegal under the Employment Agency Act 1971.

Agencies must hold a licence to operate, renewed annually. Operating without one is a criminal offence.

Temporary recruitment is one of those things everyone has a rough idea about and almost nobody has been told properly. Clients are not always sure what they are paying for. Workers are not always sure who employs them or what they are owed.

Both questions have clear answers in Irish law. Here they are.

The three way relationship

Standard permanent recruitment is a two way introduction. The agency finds someone, the employer hires them directly, and the agency steps out.

Temporary recruitment does not work like that. The agency stays in.

• The agency employs the worker, runs payroll, deducts PAYE and PRSI, accrues holiday pay, and handles statutory obligations.

• The client, called the "hirer" in the legislation, directs the day to day work, supervises on site, and pays the agency a charge rate.

• The worker is on the agency's payroll but takes instruction from the client.

That split is what the whole system rests on, and it is why the next question matters so much.

Who is actually your employer?

This trips up experienced managers, never mind first time temps. The honest answer is that it depends which law you are asking about.

The agency is the employer for the Payment of Wages Acts, the Terms of Employment (Information) Acts, the Maternity Protection Acts, the Redundancy Payments Acts, and for PRSI purposes. Under the Social Welfare (Miscellaneous Provisions) Act 2003, the party who pays the wages is the employer for PRSI.

The client is deemed the employer for unfair dismissal claims and under health and safety legislation. That principle comes from case law and is reflected in how the 2012 Act operates.

For clients, this is the practical consequence: you cannot outsource site safety. The people working on your premises are your responsibility under the Safety, Health and Welfare at Work Act 2005 regardless of whose payroll they are on. Induction, PPE, risk assessment and supervision all sit with you.

For workers, it means an issue with your pay goes to the agency, while a safety problem on site is the client's responsibility and should be raised there first.

Citizens Information sets out the split if you want the plain English version.

Day one equal treatment

This is the single most misunderstood point in Irish temporary work, and the confusion is imported.

The Protection of Employees (Temporary Agency Work) Act 2012 transposed EU Directive 2008/104/EC into Irish law. Under it, an agency worker is entitled to the same basic working and employment conditions as if the client had recruited them directly.

In Ireland that applies from the first day of the assignment. There is no qualifying period.

The UK and Northern Ireland operate a twelve week qualifying period, which was permitted under the Directive where national social partners agreed it. In Ireland no such agreement was reached, so the derogation never applied here.

The practical effect is that a great deal of the guidance a person finds online is simply wrong for Ireland. If you have read that agency workers wait twelve weeks for equal pay, you were reading about a different jurisdiction.

Equal treatment covers:

• Pay

• Working time and rest breaks

• Night work

• Annual leave

• Public holidays

It also gives access to the client's collective facilities on the same basis as direct staff, such as canteen, transport, childcare and parking, and a right to be told about permanent vacancies at the client when their own employees are told.

Two things it does not cover. Occupational pension schemes are specifically excluded from basic working and employment conditions under the Act. And access to facilities means equal access, not enhanced access, so if there is a waiting list for a crèche place, an agency worker joins the list like everyone else.

The Workplace Relations Commission publishes guidance on the 2012 Act and the full text sits on the Irish Statute Book.

Who has to get it right

Primary responsibility for equal treatment rests with the agency. But the agency can only apply it correctly if the client tells it what direct staff are paid and what conditions apply.

The Act reflects this. There is a statutory indemnity protecting the agency where a breach is down to the client failing to provide accurate information. Clients who are vague about their own rates are creating a problem for themselves, not avoiding one.

Agencies must be licensed

Under the Employment Agency Act 1971, an employment agency cannot trade without a licence. Operating without one is a criminal offence carrying a fine of up to €2,500, plus up to €1,000 a day for a continuing offence.

Getting a licence is not a formality. The applicant must be a person of good character and repute in the opinion of the Minister, verified through Garda National Vetting Bureau vetting and two independent character references. The agency must hold premises in the State meeting prescribed standards, publish a notice of intention in a national daily newspaper, and submit a statement of fees. The licence costs €500 a year and is renewed annually.

Licensing is administered through the Workplace Relations Commission, which also inspects agencies and enforces employment rights.

If you are a client, asking to see a current licence takes one email and tells you whether you are dealing with a regulated business.

An agency can never charge you a fee for finding work

Part of the licence application is a statement of fees confirming the agency will not charge candidates. Charging a jobseeker a fee for finding or taking up work is prohibited under the 1971 Act, and the 2012 Act specifically targets agencies that exploit workers by charging recruitment fees.

If anyone asks you to pay to be placed, to be registered, or to be "put forward", that is not how legitimate recruitment works in Ireland. Agencies are paid by the client, always.

How the charge rate works

For clients, this is usually the first question, and the answer clears up a lot of suspicion about margins.

The charge rate is not the worker's wage. It is the wage plus every statutory cost the agency carries as employer, plus the agency's margin.

Sitting inside a temp charge rate:

• The hourly rate paid to the worker

• Employer PRSI

• Holiday pay accrual, at 8% of hours worked

• Public holiday entitlement

• Statutory sick pay provision

• Pension auto-enrolment contributions, live since January 2026

• Insurance, payroll administration and compliance

• The agency's margin

This is why a €15 hourly rate does not produce a €17 charge rate. It also explains why rates moved in 2026: the national minimum wage rose to €14.15 on 1 January, auto-enrolment began the same month, and employer PRSI rises 0.15% from 1 October.

When comparing quotes, ask what is included. A rate that looks lower is sometimes just accounting for the same costs differently, and occasionally it is a sign that something statutory is not being provided at all.

Pay, holidays and sick leave

For workers, the practical mechanics.

Pay comes from the agency, weekly in most cases, with PAYE and PRSI deducted as normal. You should receive a written statement of your core terms within five days of starting.

Holiday pay accrues at 8% of the hours you actually work, which is the method that fits variable hours. It is paid by the agency, not the client. Rolled up holiday pay, where a percentage is added to your hourly rate instead of being paid when you take leave, is not lawful.

Public holidays apply if you have worked at least 40 hours in the five weeks before the holiday. This is worth checking rather than assuming, because it changes as your hours change.

Statutory sick leave is five paid days a year at 70% of normal daily pay, capped at €110 a day, once you have thirteen weeks of continuous service with the agency.

Pension auto-enrolment applies through the agency if you are aged 23 to 60, earning over €20,000 across all your employments, and not already in a payroll pension.

Moving from temporary to permanent

A client cannot be prevented from hiring a temp directly. The 2012 Act contains anti-avoidance provisions that specifically prohibit clauses stopping a hirer from employing an agency worker after an assignment ends.

What agencies do legitimately charge is a transfer fee, agreed in the terms of business at the outset, reflecting the sourcing work already done. That is normal and it is not the same as blocking the move.

For workers, this route is common and worth knowing about. You have a right to be told about permanent vacancies at the client when their own staff are told. If an assignment is going well and you want it to become permanent, say so.

Two practical points on the transition. Your pension pot follows you, so nothing is lost, but the employer contribution moves from the agency to the client and should be factored into the salary offer. And continuity of service can affect the thirteen week qualification for sick leave depending on how the transfer is structured, so clarify it at contract stage rather than after the first sick day.

If you are weighing up whether a role should be temporary or permanent, our companion guide to how permanent recruitment works in Ireland covers the other side.

When temporary makes sense

Temporary work is not just cover for absence, though that is the most common use.

It fits seasonal peaks, where the volume is real but finite. It fits project work with a defined end. It fits absence cover for leave, illness or a vacancy in progress. And it increasingly fits the gap while a permanent decision is being made properly rather than quickly.

That last one has grown. Temporary vacancies in Ireland rose 12% in the first half of 2026, with temporary payroll placements up almost 10%, as employers used flexible resourcing to keep operations moving while permanent hiring took longer.

It also works as a trial in both directions. The client sees how someone performs before committing, and the worker sees the site, the team and the shift pattern before signing a permanent contract. Neither is guessing.

Where temporary does not fit is a role that holds institutional knowledge, manages people, or owns client relationships. That capability needs to stay in the business.

Key Takeaways

• Temporary recruitment is a three way relationship: agency employs, client directs, worker performs.

• The agency is the employer for pay, PRSI, holiday pay and most employment law.

• The client is deemed the employer for unfair dismissal and health and safety. Site safety does not transfer.

• Equal treatment applies from day one in Ireland. The twelve week qualifying period is a UK rule.

• Equal treatment covers pay, working time, rest breaks, night work, annual leave and public holidays.

• Occupational pensions are excluded from equal treatment under the 2012 Act.

• Agencies must hold a licence costing €500 a year. Trading without one is a criminal offence.

• Charging a jobseeker a fee is illegal. Agencies are paid by the client.

• The charge rate includes PRSI, holiday accrual, sick pay and auto-enrolment, not just the wage.

• Clients cannot be blocked from hiring a temp directly. Transfer fees are legitimate; restrictive clauses are not.

• Temporary vacancies rose 12% in the first half of 2026.

The mechanics of temporary work in Ireland are less complicated than the confusion around them suggests. The agency employs and pays. The client directs and supervises. Equal treatment applies from the first day, not the twelfth week. And nobody charges a worker to find them a job.

For clients, the two things worth acting on are checking that an agency holds a current licence, and remembering that health and safety responsibility for people on your site does not transfer with the payroll.

For workers, know who to go to. Pay, holidays and your contract are the agency. Safety and day to day supervision are the site. And if anyone asks you for money to be placed, walk away and report it.

If you are weighing up temporary or permanent for a role that is currently open, talk to us about the brief rather than deciding in the abstract. The right answer usually depends on how long the work genuinely lasts.

FAQs

Total Solutions is a licensed recruitment agency based in Lucan, Co. Dublin, supplying temporary, permanent and contract staff across construction, warehousing, hospitality and office support. As the employer of our temporary workers, we handle payroll, PRSI, statutory leave and pension auto-enrolment.

If you are looking for work, see what to expect on a temporary assignment. More guidance for employers and candidates in the Insight Hub.