The new Employment Permits Act came into force in Ireland on 2 September 2024, introducing a number of important changes that will greatly benefit employers and permit holders. The new legislation consolidates and updates the existing Employment Permits Act and represents the biggest reform of Ireland’s Employment Permits Act since 2006.
The changes aim to create a more flexible employment permit system that can better respond to the changing needs of the labor market and ensure the protection of permit holders. The minimum annual wages required are reviewed annually.
Speaking about the changes, Ireland’s Minister of State for Business, Employment and Retail, Emer Higgins, said:
“Ireland is in a strong position economically. Our economy is experiencing growth and very low levels of unemployment. To build on that and ensure continued competitiveness and prosperity, we need to attract more international talent. This new legislation, along with recent measures to grant work rights to eligible spouses and partners of certain employment permit holders, and to issue a single permit to both work and live in Ireland – will go a long way towards achieving this goal.
I am pleased that this legislation will greatly improve Ireland’s employment permits system, with the ability for migrant workers to transfer their permit between employers after a set period of time and the introduction of a seasonal employment permit later this year. These new measures will continue to make Ireland a destination of choice for skilled workers.
The Employment Permits Act 2024 applies to non-EEA nationals who wish to take up qualifying employment and residence in Ireland. A non-EEA national must obtain a job offer in the State before applying for an employment permit, and applications are subject to a number of conditions, including, for example, minimum wage and skills and qualifications.
Main provisions of the Act
The Employment Permits Act introduces a number of positive changes to the existing system, including:
- Introduction of seasonal employment permit based on strong labor rights to support seasonal needs of specific sectors.
- Ability to transfer employment permit to new employer after nine months to improve opportunities and working conditions for workers.
- Moving operational details such as labor market needs testing to secondary legislation allows the system to quickly adapt to changes in the labor market.
- Employment permit holders require additional conditions such as training and accommodation support, making Ireland an even more attractive destination.
- Allow non-consultant hospital doctors to have a permit that would enable them to work at multiple sites, which would help streamline the system further.
- Allows permit holders to be promoted in their roles without requiring a new permit.
Further details of the changes are detailed below.
Modern Labor Market Needs Test (LMNT)
The labor market needs test is one of a series of criteria that must be met before an application for an Irish employment permit is granted, and to help protect domestic and EEA, employers are required to declare the role before offering it to a migrant worker. labor market.
Earlier, employers had to place three advertisements for a role, including in print media such as a national newspaper. The new bill simplifies the process and reflects modern advertising practices by requiring employers to publish vacancies online only.
The new declaration requirements are as follows:
- A notice must be kept with the Social Protection Employment Services/EURES Employment Network department for at least 28 days (continuously); And
- The notice must be placed on an additional online platform, and will last for at least 28 days. An online platform may be: Any website, software or electronic technology that provides online publication of information, the primary purpose of which is to publish employment offers.
Change of owner
Previously, regulations required permit holders to be with the same employer for at least 12 months before changing employers, and the worker had to submit a new application to do so.
Under the new law workers can change employers after 9 months without having to submit a new application. However, some conditions should be observed:
- If you have a General Employment Permit (GEP), you can only change to the same position (same 4 digits of the SOC code). For example, Carpenter (SOC Code No. 5315) can only transfer to the same position as Carpenter or Joiner (SOC Code No. 5315).
- If you have a Critical Skills Employment Permit (CSEP), you can change to the same category (same 3 digits of the SOC code). For example, a Mechanical Engineer (SOC Code No. 2122) may move to another position in the same category as an Electrical Engineer (SOC Code No. 2123).
- You can only change owners 3 times.
- A new employment contract signed by both the new employer and the employee is required to be submitted.
- The employee is required to start employment with the new employer within one month of the issuance of the new permit.
- The new Labor Market Needs Test is not required for General Employment Permit holders.
The revalidation rules remain the same, so in exceptional circumstances, if you have to leave the company within 9 months, you must go through the revalidation process.
The new Employment Permit Act allows promotion and transfer within the same company where the permit holder uses the same skills, without the need to submit a new application.
Change in 50:50 clause
Under Irish immigration law, an employment permit cannot be issued unless at least 50% of the employees in an organization are EEA nationals (the 50:50 rule) at the time of application.
There are some exceptions to this rule. Previously, one of the exceptions to the 50:50 rule was when the company had only one employee (the applicant) and only retained this one employee.
To support the future expansion of businesses, the exemption has been revised to the 50:50 criteria for employers who have no employees at the time of application and will not limit the employer to one employee permit holder upon grant. This does not prevent the owner from expanding their business in the future. The 50:50 rule is triggered when a second application for an employment permit is made to the same employer. The change is expected to benefit new companies.
In the case of a contract for service contract, the 50:50 criteria may be satisfied by the contractor, subcontractor or related person, which may not have a contractor or subcontractor from outside the EEA. At least 50 percent of its workforce is EEA workers.
New Seasonal Employment Permit (SEP)
The new Seasonal Employment Permit (SEP) is a short-term visa valid for up to 7 months per year for seasonal jobs such as horticulture and agriculture.
The scheme will be tested in a pilot project later this year and will begin in 2025.
Employers who wish to use the SEP must register annually to become a pre-approved seasonal employer. The approval is valid for up to 12 months depending on the need for seasonal employment and the size of the company. A list of approved employers will be published and any violation will affect future approvals.
Seasonal Employment Permit holders can transfer their SEP to another approved seasonal employer under the scheme through a simplified notification procedure.
Application rejections
The grounds for refusal in the previous Act remain largely unchanged except for the introduction of a discretionary ground for refusal where additional conditions attached to the grant of a particular permit type or occupation are not respected or provided to the permit holder.
The review of the decision to deny the sanction process is adjusted in two situations. Where the reviewing officer considers that new reasons for rejection different from the notified reasons are relevant, the officer may consider taking action on that additional rejection. The applicant will be given an opportunity to make representations regarding those reasons before a final decision is taken.
Additionally, in cases where new information or a change in circumstances relevant to the decision to deny or grant is identified, the reviewing officer may consider remanding the application for full reconsideration.
Return of incomplete applications
The Act now allows the Minister to return incomplete applications without full consideration, with written notification to the applicant along with the fee and any documentation provided. The Act also allows a person to nominate a person to get a refund of the application fee paid.
Impact on employers and migrant workers in Ireland
The Department has issued a document listing these changes in more detail, which is available on the DETE website here.
While these changes seem mostly positive, as they remove many administrative burdens and make it easier for businesses to stay compliant, employers should carefully consider these changes and their impact on their employees.
For employees, the changes will make Ireland a more attractive country to work in, as it will be easier to develop and progress in their careers, with salary caps within Irish living standards.
For more information about Ireland’s employment permits, please contact the Global Immigration team at Smith Stone Walters.
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