Employment Permits Act 2024 – Reform to the Employment Permits Process
The recently enacted Employment Permits Act 2024 (the “2024 Act”) is a much-welcomed step in modernising the employment immigration landscape in Ireland. Effective as of 2 September 2024, it is hoped that the changes introduced by the 2024 Act will create a more accessible and efficient application system to keep pace with Ireland’s ever evolving labour market.
The main changes introduced by the 2024 Act are as follows:
Update to the Labour Market Needs Test
The Labour Markets Needs Test has notably been a point of contention for many business owners. The 2024 Act aims to modernise this test to reflect more modern advertising practices seen in the labour market. This update sees the requirement for advertising in a national newspaper abolished. Now vacancies must be advertised on two platforms, one of which is the European Employment Service (EURES) Network (Irish partner being jobsireland.ie) and the other can be any digital platform with the principal purpose of publishing employment offers. Furthermore, the inflexibility of the Labour Market Needs Test has been addressed by moving it to secondary legislation, where it can be more easily amended to keep pace with the ever-evolving labour market.
Creation of two new types of employment permit
Notably the 2024 Act provides for two new types of employment permits: A Seasonal Employment Permit and a Dependant Employment Permit.
The Seasonal Employment Permit now caters to short term and recurrent employment situations in appropriate sectors. This permit is aimed at facilitating access to the permit system for those foreign nationals whose employment relates to a certain time of the year or seasonal conditions. The new Seasonal Employment Permit permits employees to work for up to seven months in the calendar year, providing employers with greater flexibility to address worker shortages throughout the year.
A Dependant/Partner/Spouse Employment Permit is a permit for dependants of Critical Skills Employment Permit holders and Researchers under Directive 2005/71/EC. Spouses and partners of these non-EEA nationals can now apply for immigration permission giving them access to the labour market without the need to hold an employment permit.
Agencies and Subcontractors
While employment permits are primarily to exist between an employer and a non-EEA employee, the 2024 Act now permits the salary of a permit holder to be paid by an entity other than the employer. This allows for employment agencies to be employers of permit holders who in practice carry out work for clients of the agency.
Subcontractors are also permitted to avail of the Contract for Service Employment Permit in the same manner as a standard contractor.
Change of employer
The 2024 Act now allows certain employment permit holders to change their permit employer to another employer after a period of nine months has passed since the permit holder commenced their first employment permit in the State. This provision allows permit holders greater flexibility and freedom of movement to seek employment in their area of expertise with more attractive terms and conditions. Unlike applications for new permits, there is no requirement for employers to conduct a labour market needs test before the permit holder applies to change their employer – a move that will greatly aid a smooth transfer process.
50:50 Rule
The 50:50 rule has now been waived for new employers with no employees at the time of the permit application. This rule will only be triggered once a second permit application has been received from the same employer, allowing start ups and new companies an opportunity to establish themselves in Ireland before growing their workforce.
Salary threshold indexation
Salary thresholds for permits will now be automatically indexed against the annual change in mean weekly earnings calculated by the CSO. This will allow the permit system to keep pace with the growth in Ireland, ensuring that remuneration levels remain competitive and Ireland remains an attractive destination to work in.
Concluding Remarks
The 2024 Act provides crucial and well needed reforms to modernise the employment permit system in Ireland. The introduction of new permit types, simplified processes and greater flexibility will better align our permit system with the ever-growing and fast-evolving labour market and ultimately simplify compliance for employers.
Please contact a member of our Employment Team for further information on the 2024 Act and its impact on Irish businesses and non-EEA employees.
Also contributed to by Sorcha Cusack
This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.
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