Ireland—Employment tax implications of a TUPE transfer


Produced in partnership with Mr. Diarmuid Finnegan of Independent contributor
Practice notes

Ireland—Employment tax implications of a TUPE transfer


Produced in partnership with Mr. Diarmuid Finnegan of Independent contributor

Practice notes
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When employees are transferred along with the business in which they work pursuant to the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 (Ireland) (TUPE Regulations 2003 (IRL)), there are numerous employment tax implications to be considered. This Practice Note focuses on the employment tax and payroll implications of a TUPE transfer from an Irish tax perspective.

Continuity of employment

Pursuant to TUPE 2003 Regulations (IRL), s 4, when a transfer occurs under these regulations, in scope employees’ contracts are transferred by law to the new employer, maintaining their existing terms and conditions, including length of service.

The length of service aspect is of relevance from an employment tax perspective in the event of any future redundancy. In such cases, the individual employee’s statutory redundancy entitlement will be calculated based on their original date of commencement of employment pre-transfer. Years of service for ex-gratia tax exemption purposes with respect to any ex-gratia payment will also be based on the original commencement of employment.

Without the application of the TUPE

Diarmuid Finnegan
Mr. Diarmuid Finnegan

Tax Advisor, Independent contributor

Diarmuid is a Tax Director in PwC with over 11 years experience, specialising in employment taxes and revenue audit. 
 
  • Day-to-day, Diarmuid assists advise companies on all aspects of taxation of employees to include tax withholding (PAYE) obligations, Revenue audits, reward strategy, employee share plans, social taxes, and cross border working arrangements.
 
  • Diarmuid has worked with companies in assisting them with Revenue Audits, Voluntary Disclosures, pre-audit health checks and due diligence reviews from an Employment Tax and payroll perspective and has extensive experience in supporting clients through Revenue interventions. 

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Ireland

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