Outsourced HR in Ireland: when a small business needs HR support

The core Irish employment duties apply from your first hire, with further obligations once you have more than 20 employees and again at 50. For most small businesses, outsourced HR support is enough until there is steady day to day people work to fill a full time role. Either way, the legal duties stay with you as the employer.

What applies from your first employee

Being small does not exempt you from the basics. As of October 2026:

• Written terms. The Workplace Relations Commission says core terms must be given in writing within five days of starting, and a fuller written statement within one month.
• Dismissal procedure. Citizens Information says written details of the procedure to be followed before a dismissal are due within 28 days of starting.
• Safety statement. The Health and Safety Authority says every employer must carry out a risk assessment and prepare a written safety statement. Employers of three or fewer may be able to follow a sector code of practice instead.
• Pension. Since 1 January 2026, eligible employees with no payroll pension are enrolled automatically in MyFutureFund, and Citizens Information says their employer must take part.
• Bullying and harassment. The statutory codes of practice on bullying (S.I. No. 674 of 2020) and on harassment (S.I. No. 106 of 2022) are written to apply to all employments, and both expect a written policy and complaints procedure.

The 20 and 50 employee marks

Two headcount marks bring extra work, so plan ahead.

• More than 20 employees. The Workplace Relations Commission says the collective redundancy rules apply where an establishment has more than 20 employees. Where 21 to 49 people are normally employed, five or more proposed redundancies within 30 consecutive days means at least 30 days of consultation with employee representatives, and notifying the Minister responsible for enterprise.
• At 50: protected disclosures. Since 17 December 2023, organisations with 50 or more employees must have internal channels and procedures for workers to report wrongdoing. The Workplace Relations Commission says failing to do so is an offence.
• At 50: gender pay gap. Department of Children, Disability and Equality guidance, last updated 19 June 2026, says employers with over 50 employees (written as 50+ elsewhere in the same guidance) choose a snapshot date in June, publish their report by the end of November 2026 and submit the figures to the Gender Pay Gap Portal.

What outsourced HR normally covers

An outsourced HR service gives you an HR professional to call without adding one to the payroll. The usual scope is:

• Contracts, a staff handbook and policies, kept up to date as the law changes
• Advice by phone or email for owners and managers on absence, performance, probation, leave and conduct
• Hands on support with disciplinary, grievance and investigation processes
• Help with restructuring, redundancy and changes to terms
• Manager training and, with some providers, HR software or administration

Payroll, health and safety and recruitment are often separate services, so check.

How it is usually packaged

There are three common models.

• Retainer. A fixed monthly fee for an agreed scope, usually advice on call plus document upkeep.
• Per employee. A monthly fee that moves with headcount, common where software or administration is included.
• Project. A fixed or hourly fee for one defined job, such as a handbook, an investigation or a restructuring.

No prices are quoted here, because quotes only compare when the scope is the same. Ask each provider to price the same written scope.

Questions to ask before you sign

These apply to any provider, FH included.

• How long is the contract, does it renew automatically, and what notice ends it?
• Can the fee change during the term?
• Who will I actually speak to, what are their qualifications, and will it be the same person each time?
• What is excluded? Ask about investigations, attending hearings, on site days and preparing for a Workplace Relations Commission case.
• Is advice confirmed in writing, and how quickly?
• If insurance or legal cover is included, what conditions attach to it?
• Do we keep our documents if we leave?

When an in house HR person makes more sense

None of the sources below sets a headcount at which you must employ an HR person. An in house hire tends to make sense when:

• Managers need help with people issues every day, not a few times a month
• You are hiring constantly, or run several sites or shift patterns
• You have passed 50 employees and the reporting above has become yearly work
• You want someone on the floor for training, development and culture

Even then, outside support stays useful for independent investigations and complex cases.

FH Recruitment's HR consultancy is led by a consultant with a master's degree in human resource management and supports employers on either side of that line, with scope, fee and timings agreed in writing before any work starts. FH gives HR advice and practical support and is not a law firm. This article is general information and not legal advice, so confirm the current position with the sources below or a solicitor.

Sources

All sources were checked on 6 October 2026.

• Workplace Relations Commission: terms of employment; collective redundancies (updated 5 July 2024); employer obligations under the Protected Disclosures (Amendment) Act 2022
• Department of Children, Disability and Equality, How to report on the Gender Pay Gap, last updated 19 June 2026
• Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Protected Disclosures Act information, last updated 7 April 2026
• Citizens Information: Contract of employment (edited 10 August 2026) and its page on the automatic enrolment pension (edited 30 June 2026)
• Health and Safety Authority, guidance on safety statements and risk assessment
• Irish Statute Book: S.I. No. 674 of 2020 and S.I. No. 106 of 2022