• Deloitte Research reinforces the need for change in the immigration process
• New arrangements do not go far enough in addressing labour shortages
  Questions remain over increased flexibility for workers
• Measures to address employee rights welcomed but enforcement is key

The Employment Permits Act 2006 will alleviate some of the difficulties associated with the old employment permit application system and should address the length of time taken to process applications. However it does not go far enough in addressing labour shortages or in offering foreign workers increased flexibility to work in Ireland.

In a recent survey of Deloitte clients, 76 percent of respondents identified the need for change in the immigration process. Over 50 percent of them rated the old immigration system as very difficult or difficult. In addition 82 percent of respondents said that the application process took in excess of 4 weeks. It is therefore welcomed that the new system introduces the issuing of employment permits for an initial period of 24 months, as opposed to 12 months. This should decrease the volume of applications and help towards a more efficient, faster process.

Jeanette Ryan, Immigration Services, Deloitte, comments:

“A number of welcome developments were announced today. Under the new arrangements, spouses and dependents are free to seek employment and obtain permission to work. It also permits the immediate entry of spouses and dependents.

“While the new system does go some way in addressing the labour shortages in Ireland, it primarily addresses labour shortages in highly skilled areas.

“Perhaps the most notable change that this new Act brings about is that employment permits can now be issued to both the employee as well as the employer. It is questionable how much flexibility this will offer the employee, as the new arrangements state that the employee is generally expected to stay with the initial employer on their first permit for one year and may only change employers thereafter, unless under exceptional circumstances.”

In the area of employment rights and protection, the act addresses the employee records that must be retained by employers for all foreign nationals working within the company.

Wendy Doyle, Employment Law Services, Deloitte, comments:

“It is certainly a welcome development that there are now specific statutory responsibilities on employers to maintain and produce up to date records in relation to the employment of non nationals. We would also welcome a number of key protections for workers including the requirement that the work permit must now contain a statement of the entitlements of the migrant worker, including their entitlement to the National Minimum Wage and their right to change employer after twelve months."

“However the issue of enforcement of these rights is critical – the Department and the Minister must be seen to enforce these new provisions. More importantly, all foreign nationals must be made aware of their increased rights – and communicating these new rights and protections to workers must become a priority. We would hope that the new protections under the Act together with the new workplace and employment rights under the Social Partnership Agreement ‘Towards 2016’ will ensure enhanced employment law rights compliance across our labour market.”

Jeanette Ryan concludes: “The Act is a tentative step in the right direction – the feedback we received from clients certainly indicates that change is needed. That said, we are currently in a wait and see situation to see how the new process works and, importantly, how the renewal of work permits will be dealt with, as this has not been addressed today. The success of the system will depend on how easily the new system is adopted by both applicants and the Department.”

The main areas dealt with in the Act include:

• New applications to obtain permission to work in Ireland e.g. Green Card scheme
• New powers for authorised officers
• Records required to be retained by employers
• Exchange of data between the Irish Revenue, the Government Departments and the Social Welfare authorities
• Increased fines and penalties for non compliance

The new arrangements become operational from 1 February 2007.

Ends
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