Starting a Recruitment Agency in Ireland: Licence and Legal Requirements

Last updated November 2026. General information only, not legal advice.

Recruitment is a licensed activity in Ireland under the Employment Agency Act 1971, and agencies that supply temporary workers take on a second layer of duties under the Protection of Employees (Temporary Agency Work) Act 2012. This guide explains the licence, the rules on fees, what agency workers are entitled to, and the documents a new agency needs before it trades.

Do you need an employment agency licence in Ireland?

Yes. Section 2 of the Employment Agency Act 1971 says that a person “shall not carry on the business of an employment agency” except under a licence. The definition in section 1 covers seeking people for employment on behalf of others, or seeking employment for people, “whether for reward or not”, and since 2013 expressly includes agencies that supply temporary agency workers. The licence is granted by the Minister for Enterprise, Tourism and Employment, but applications are processed by the Workplace Relations Commission (WRC) Licensing Section, which publishes a list of licensed agencies and is clear that an agency must be licensed before it starts trading.

Who can hold a licence

The 1971 Act and the Employment Agency Regulations 1972 set standards of “suitability and fitness” for the applicant and the premises. The licence holder must own or rent the premises, must not be an undischarged bankrupt, must not have been convicted of an indictable offence or of an offence under the Act in the previous five years, and must not have had a licence revoked. The WRC asks for two independent references from people resident in the State, photo identification and Garda vetting (or recent police clearance for non-residents). Only agencies with premises in the State are licensed, and the premises must be clean, safe, heated, lit and ventilated, with private space for interviews.

How to apply

You must first publish a notice of your intention to apply in a national daily newspaper. You then submit the application form, a Garda vetting invitation form, photo ID, the referee forms, a self-certified premises statement, your CRO business name registration (and certificate of incorporation if you are a company), and a Statement of Fees confirming that candidates are not charged. The fee is €500 by electronic transfer, the licence lasts one year, and renewal costs €500 a year. The WRC quotes an average processing time of around two weeks. Once licensed, you must display the licence prominently in the premises, keep records of applicants, placements and fees, and file a half-yearly return.

Penalties for trading without a licence

Contravening the Act or the Regulations is an offence under section 10: a fine of up to €2,000 on summary conviction, plus up to €1,000 for each day a continuing offence goes on. Directors and officers can be personally liable where they consented to or neglected the breach, and the Minister can revoke a licence, subject to an appeal to the High Court.

Charging fees: candidates must not pay

Section 7 of the 1971 Act prohibits an agency from charging fees above a scale approved by the Minister, and from charging any fee “solely for agreeing to seek employment” for a person. For temp agencies, section 13 of the 2012 Act adds an offence: an agency may not charge a worker a fee for arranging direct employment with a hirer after an assignment. Your revenue has to come from client employers, which is why your terms of business with hirers are the commercial heart of the agency.

Agency workers: equal treatment from day one

If your agency employs temps and assigns them to hirers, the Protection of Employees (Temporary Agency Work) Act 2012 applies. Section 6 entitles an agency worker to “the same basic working and employment conditions” as if the hirer had recruited them directly for the same or similar work, with no qualifying period. That means pay, working time, rest breaks, night work, overtime, annual leave and public holidays. “Pay” covers basic pay and shift, piece, overtime, unsocial-hours and Sunday premiums, but excludes sick pay and pension payments. A narrow derogation in section 6(2) removes the pay-equality rule for a worker on a permanent contract with the agency who was told this in writing in advance and is paid at least half of their last assignment pay between assignments.

Who is the employer?

For most purposes the agency, as the party with the contract of employment and paying the wages, is the employer and is liable for the section 6 rights. Hirers must tell agency workers about vacancies (section 11), give equal access to canteens, childcare and transport unless objectively justified (section 14), and give the agency the information it needs to comply (section 15). For unfair dismissal, however, section 13 of the Unfair Dismissals (Amendment) Act 1993 deems the hirer to be the employer, whether or not it pays the wages, and health and safety at the workplace rests with the hirer. Complaints under the 2012 Act go to the WRC within six months, with compensation of up to two years’ remuneration.

Written terms, equality and candidate data

Temps employed by the agency and in-house consultants are entitled to written terms under the Terms of Employment (Information) Act 1994: core terms within five days and the full statement within one month, and for temporary contracts the identity of the hirers as soon as known. See what Irish law requires in an employment contract.

Section 10 of the Employment Equality Act 1998 makes it unlawful to publish a job advertisement that indicates, or might reasonably be understood as indicating, an intention to discriminate. Section 11 applies directly to agencies: an agency must not discriminate against a person seeking its services, with a defence where it reasonably relied on an employer’s statement that a refusal would be lawful.

Agencies also process large volumes of personal data. Ireland has no controller registration or fee, but the Data Protection Commission’s employer guidance warns that consent is usually an unsuitable lawful basis for recruitment data and that retention periods for unsuccessful candidates must be set and reviewed. We cover this in GDPR for recruitment agencies in Ireland.

Business set-up and the documents you need

Before the WRC will consider your application you need your CRO paperwork in order: a registered business name (within one month of adopting it) or a certificate of incorporation, and you must register with Revenue as an employer before the first payment to any employee, including your temps.

A recruitment agency typically runs on a small set of documents: terms of business with client employers (permanent and temporary versions), an employment contract for temps assigned to hirers, contracts for in-house consultants, a candidate privacy notice and retention schedule, and an equal opportunities statement. Our Recruitment Agency Legal Pack is a set of self-complete templates covering these, one of several sector-specific packs for Irish businesses.

A template cannot obtain your licence or tell you whether a particular arrangement, such as an employer-of-record model or a permit-based hire, is lawful for your agency. The Department of Enterprise’s guidance, for example, is that employment permit applications cannot be considered from an agency where the worker would work under the direction of a third party. If your plans involve non-EEA workers, complex hirer relationships or a dispute, speak to a solicitor; the Law Society’s Find a Solicitor service lists practising solicitors.

Frequently asked questions

Do I need an employment agency licence in Ireland?

Yes. Section 2 of the Employment Agency Act 1971 prohibits carrying on the business of an employment agency without a licence. The definition covers permanent placement and the supply of temporary agency workers, whether or not a fee is charged. You must be licensed before you start trading.

How much does an employment agency licence cost in Ireland?

The WRC’s published fee is €500 for a new licence, payable by electronic transfer, and €500 for each annual renewal. The licence runs for one year from the date of issue.

Can a recruitment agency charge candidates a fee in Ireland?

No. Section 7 of the 1971 Act prohibits charging a fee solely for agreeing to seek employment for someone, and the WRC requires a statement confirming that candidates are not charged. For temps, section 13 of the 2012 Act makes it an offence to charge a worker a fee for arranging direct employment with a hirer.

Who is the employer of an agency worker in Ireland?

Usually the agency, as the party with the contract of employment and paying wages, and the agency is responsible for equal basic working conditions under the 2012 Act. For unfair dismissal claims, section 13 of the Unfair Dismissals (Amendment) Act 1993 deems the hirer to be the employer. Health and safety at the workplace rests with the hirer.

What is the Protection of Employees (Temporary Agency Work) Act 2012?

It is the Irish law implementing the EU Temporary Agency Work Directive. It gives agency workers the same basic working and employment conditions as directly recruited staff from day one, bans fees for arranging direct employment with a hirer, and sets duties for hirers on vacancies and facilities.

Sources: WRC – Employment agencies · WRC – Employment agency licensing FAQ · Employment Agency Act 1971 (revised) · Protection of Employees (Temporary Agency Work) Act 2012 (revised) · Citizens Information – Agency workers

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