Employment Law Update: Key Elements of Irish Employment Permits Legislation
25 November 2014
The Employment Permits (Amendment) Act 2014 (the "Act") and related regulations brought about a number of changes to the employment permit landscape. We outline some of the key elements of the Act.
- The rule known as the “50:50 Rule” requires employers, who wish to hire non-EEA nationals on an employment permit, to show that at least 50% of their employees are EEA nationals. The 50:50 Rule applies to all employment permit applications, whether made by an employer or an employee. The only exception to this is in the case of start-up companies with enterprise agency support that are applying for certain types of employment permits or in limited circumstances, where the Irish entity has no employees and the applicant will be the sole employee.
- The Labour Market Needs Test applies to applications made by an employer or an employee, although the test is only relevant in the context of applications for General Employment Permits or Contract Service Provider Permits. This test aims to ensure that an offer of employment is made to individuals already in the EEA labour markets before an application is made for an employment permit to employ a non-EEA national.
- The Act allows a non-EEA national, who has been employed illegally without an employment permit, to take civil action against their employer to recoup unpaid wages as long as they can show that they took all steps reasonably open to them to comply with the legislation.
- Where the holder of a Critical Skills or a General employment permit has been dismissed by reason of redundancy, the individual must notify the Minister for Business, Enterprise & Innovation within four weeks of the redundancy. However, the individual can remain in Ireland for six months from the date of the redundancy to seek alternative employment.
- In the event of a transfer of undertaking, the employer (or in the case of a Contract for Services employment permit or Intra-Company Transfer employment permit, the host company or foreign employer or the contractor, as the case may be) must notify the Minister of the change in name of the employer. The employment permit will then be re-issued under the new name.
There are nine categories of employment permits, with an accompanying application form for each category:
- Critical Skills Employment Permit;
- Dependent, Partner and Spouse Employment Permit;
- General Employment Permit;
- Intra Company Transfer Permit;
- Contract for Service Provider Permit;
- Reactivation Employment Permit;
- Exchange Agreement Employment Permit;
- Sports & Cultural Employment Permit; and
- Internship Employment Permit.
For more information, please contact our Employment & Benefits team.