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Why paying staff a week in arears makes sense for Irish farmers
For many Irish farmers, especially those hiring seasonal or part-time workers, the question of when to pay staff can arise at the outset of employment. While it may seem fair or even traditional to pay employees at the end of their first week worked, there are compelling reasons to consider a more structured approach — paying one week in arrears.
What does ‘paying in arrears’ mean?
Paying in arrears simply means that employees are paid after the work has been completed. For example, if a worker finishes a week’s work on a Friday, their wages for that week would be processed and paid the following week. It does not mean they are being paid late — it means they are being paid accurately for time already worked.
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Mary McDonagh, Head of HR & Payroll Services
1. Accuracy and clarity
Paying in arrears allows for the full and accurate recording of hours worked. On a busy farm, where days can run long and tasks vary, finalising payroll based on actual time rather than estimates avoids overpayments and underpayments. This protects both the employer and the employee.
2. Administrative simplicity
By building in a week’s buffer, the payroll process becomes more manageable. It provides necessary time to confirm timesheets and address any queries that may arise. For farmers already juggling multiple responsibilities, this reduces pressure.
3. financial Planning and Cash Flow
Agricultural income can be seasonal and unpredictable. Paying in arrears gives the employer a short but valuable window to manage cash flow and ensure funds are in place before wages are processed. This is particularly useful during periods of high outgoing costs, such as peak harvesting or lambing seasons.
4. Industry standard and professionalism
Most sectors in Ireland pay employees in arrears. Aligning with this standard reflects a more professional and consistent employment practice. For young workers or those transitioning from other jobs, it sets expectations in line with broader industry norms.
5. Employee trust and transparency
When staff understand that pay is based on actual work completed, and receive payslips showing exactly what’s been earned and why, it builds trust. Establishing this from the start helps maintain good relationships, especially in rural communities where word of mouth carries weight.
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In short, paying a week in arrears is not about delaying wages — it’s about getting them right. For Irish farmers, this approach supports better planning, accurate pay, and fair employment standards. A small change in timing can lead to better outcomes for both employer and employee.