At a Glance
- Effective September 2, 2024, Ireland will introduce a new employment permit for seasonal workers, streamline its labour market testing processes, and modify its 'change of employer' rules.
- Authorities have provided further details regarding these new rules, including with respect to automatic cancellation of existing permits, digitised labour market testing, change of employer timeframes, and minimum salary levels.
- These reforms are part of the recently enacted Employment Permits Act 2024, which also introduces new notification obligations, among other changes. Up to now, its provisions had not yet taken effect.
- When implemented, these reforms are likely to make it easier for employers to attract talent, though may also present administrative challenges in the context of the Irish government's increased focus on compliance.
The situation
The new Employment Permits Act goes into effect on September 2, 2024. Among other things, the Act introduces a new employment permit for seasonal workers and dependents, streamlines Ireland's labour market testing processes, and modifies its 'change of employer' rules.
A closer look
In addition to the earlier announced rule changes, Irish authorities have provided the following additional details. Some of these details clarify earlier announced information:
- Seasonal work permit employment period clarified. Availlable guidance confirms that the new seasonal employment permit will allow seasonal workers to be employed for seven months out of a calendar year, whereas previously, the validity period was unclear. The permit will be introduced from September 2. The creation of the seasonal employment permit provides businesses a new pathway to source seasonal talent (of particular benefit to the horticulture and food production sectors). Clarifying that the relevant period is seven months (as opposed to a shorter alternative) provides employers with more flexibility to resolve seasonal worker-related talent shortages.
- Digitised labour market testing processing clarified. Authorities have clarified the online platforms to be used for labour market testing purposes from September 2. These are: a) the European Employment Service (EURES) network; and b) a digital platform with the principal purpose of publishing employment offers. Employers must issue the job advertisement on both EURES and at least one other digital employment-offer platform. Further, authorities have clarified that both advertisements must be published for at least 28 days. The move to a completely digital labour market testing process is likely to make the labour market testing process more efficient and cost-effective for employers.
- Change of employer rules relaxed. Authorities have clarified that an employee on their first employment permit will be able to apply for a new work permit after nine months of working for their first employer (down from 12 months). Additionally, after nine months of employment, employees will be able to apply to change the employer listed on their employment permit (provided the role remains the same), whereas currently, this is not possible. These changes may increase the attractiveness of Ireland for foreign workers, given the greater capacity for permit holders to flex with changing labour market conditions and opportunities.
- Minimum salary level system clarified. The new regulations also set the scene for Ireland's new way of calculating the minimum annual remuneration (MAR) requirement for employment permits. While these are currently only updated very seldomly, the new Act will require the authorities to review the MAR once per year. The authorities will need to increase the MAR in line with Ireland's weekly average wage, as published by government authorities.
- Automatic cancellation of existing permits. In a reflection of the digitalisation of permits, existing employment permits will be cancelled automatically by authorities when new permits are issued. Currently, foreign nationals must surrender their existing permit before a new one can be granted. By removing an additional step in the application process, this change streamlines and simplifies the application process.
Background
- Employment Permits Act 2024. These reforms are part of the recently approved Employment Permits Act, which also introduces new notification obligations, among other changes. The primary goal of this Act is to consolidate the assortment of multiple related amended acts implemented over a 15-year period.
- General impact. These reforms – the largest update to the system since the introduction of the previous legislative framework in 2003-2006 – are likely to make it easier for employers to attract talent, though may also present administrative challenges in the context of the Irish government's increased focus on compliance.
Looking ahead
- Single Permit. Irish authorities are now expected to continue moving towards a unified application process, combining work permits and visas into a single procedure. Such a process would take several more years. Ireland may then choose to opt into the European Union's Single Permit Directive.
- MAR Changes. The new MAR rules will require authorities to increase minimum salary thresholds for employment permits in line with increases in the average wage in Ireland. Employers should start planning in anticipation of the new figures being announced, which is expected to occur by the end of the year.
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