A guide for Employers navigating a flexible workforce
Corina Gormley, Director, CAS Advisory
Part-time employees play an important role in businesses across Ireland, making up for approximately 20% of the workforce (CSO Labour Force Survey 2025). So, whether you’re managing seasonal demand, covering busy periods for the business, or simply offering employees greater flexibility, part-time working has become a key part of the Irish workforce and something you cannot ignore in your overall people strategy. And, as the appetite for flexible work increases, it’s important for employers to understand their legal obligations and ensure their policies and payroll processes remain compliant.
The Protection of Employees (Part-Time Work) Act 2001 has governed the rights of part-time employees for over two decades, but you should also be aware that the Workplace Relations Commission (WRC) introduced a new Code of Practice on Access to Part-Time Work in January 2026. The Code doesn’t create new legal rights as such, rather, it provides updated guidance on how employers should deal with requests for part-time working and highlights the importance of having fair, transparent procedures in place.
Here’s what Irish employers and multinationals operating here should know about employing part-time staff in Ireland, whether hiring part-time workers from the outset or managing existing full-time employees who want to shift to part-time hours.
Equal treatment
The key principle of the Protection of Employees (Part-Time Work) Act 2001 is straightforward. Part-time employees should not be treated less favourably than comparable full-time employees unless there is a genuine, objective reason for doing so.
In practical terms, this means pay, annual leave, sick pay, access to training, bonuses and other employment benefits should generally be provided on a pro rata basis.
For example, if a full-time employee works five days per week and earns €40,000, an employee carrying out the same role for three days per week should receive three-fifths of that salary, along with proportionate employment benefits.
Annual leave and statutory sick pay
Part-time employees continue to build up statutory employment rights based on the hours they work.
Annual leave
The statutory minimum annual leave entitlement for a full-time employee is four working weeks per year. For part-time employees, leave generally accrues at 8% of hours worked during the year.
The correct calculation will depend on each employee’s working pattern, so it’s important that payroll systems calculate leave accurately rather than relying on broad estimates or year-end adjustments.
Statutory Sick Pay
Eligible employees, including those working part-time, are entitled to Statutory Sick Pay provided they meet the qualifying conditions, including 13 weeks’ continuous service and submitting a valid medical certificate. In 2026, statutory sick pay is 5 sick days per annum (increased from 3 in 2023).
Because sick pay entitlements apply regardless of contracted hours, employers should ensure payroll processes correctly reflect each employee’s entitlement.
What has changed with the new Code of Practice?
The WRC’s updated Code of Practice on Access to Part-Time Work, introduced in January 2026, replaces the previous guidance that had been in place since 2006.
While the Code does not give employees a legal right to work part-time, it sets out good practice for employers when dealing with requests to move from full-time to part-time hours.
Employers are expected to:
- Consider requests fairly and in good faith.
- Acknowledge requests promptly.
- Assess each request on its own merits.
- Clearly explain the reasons where a request is refused.
Although employers are not required to approve every request, they should be able to demonstrate that a fair and consistent process has been followed.
Practical steps employers should take
If your business employs part-time staff, or you receive requests from employees wishing to reduce their hours, now is a good time to review your current policies.
Consider whether you have:
- A written policy explaining how part-time or flexible working requests are handled.
- Consistent procedures for assessing and responding to requests.
- Payroll systems that correctly calculate annual leave, sick pay and other statutory entitlements.
- Employment policies that apply equally to both full-time and part-time employees.
Having clear processes not only helps reduce the risk of disputes but also supports a fair and transparent workplace.
Common areas where employers run into difficulties
Many WRC complaints don’t arise because employers intentionally treat part-time employees unfairly. More often, problems occur because workplace policies were designed around full-time employees and haven’t been adapted.
Examples include:
- Bonus schemes that exclude employees working reduced hours.
- Training sessions scheduled only when part-time employees are not at work.
- Promotion opportunities that unintentionally favour full-time staff.
- Redundancy selection criteria based on attendance or working hours rather than objective business needs.
Regularly reviewing employment policies can help identify these issues before they become costly disputes.
Contractors V’s Employees
Another area that can catch employers out is the classification of workers, be it contractors or employees, and Revenue introduced a set of guidelines for employers in this regard following the landmark Karshan case (Revenue Commissioners v. Karshan (Midlands) Ltd t/a Domino’s Pizza) that employers should pay close attention to.
International Companies Operating in Ireland
For companies operating in Ireland, the stakes are high. Staying up to date on local legislation, employee statutory rights, WRC guidance, revenue requirements and general best practice can be hugely challenging. Having payroll experts as your ‘boots on the ground’ in Ireland is something your company should consider, if not already in place.
How CAS Accounting can help
Employment legislation continues to evolve, and keeping payroll and HR processes compliant can be challenging for busy employers.
At CAS Advisory, we work with multinationals operating in Ireland and Irish SMEs to help ensure payroll is accurate, employment obligations are met, and workplace policies support both compliance and good business practice.
Whether you need advice on managing part-time employees, reviewing your payroll processes or understanding your responsibilities as an employer, our team is here to help.
If you’d like to discuss your payroll or employment obligations, get in touch with the team at CAS Accounting today.
Email: contactus@casaccountants.ie
