Ireland: Changes to the Employment Permits Act

05.09.2024

A new Employment Permits Act came into force in Ireland on 2 September 2024, introducing several important changes that will greatly benefit employers and permit holders alike. The new Act consolidates and updates the existing employment permits law and represents the biggest reform of Ireland’s employment permits legislation since 2006.

The changes aim to create a more flexible employment permits system that is better able to respond to the changing needs of the labour market and ensures the protection of permit holders. The minimum annual salaries required will continue to be reviewed annually.

Speaking about the changes, Ireland’s Minister of State for Business, Employment and Retail, Emer Higgins said:

“Ireland is in a strong place economically. Our economy is experiencing growth and very low levels of unemployment. To build on that and ensure continued competitiveness and prosperousness, we need to attract more international talent. This new law, along with recent measures like the granting of work rights to the eligible spouses and partners of certain employment permit holders and the roll out of a single permission to both work and live in Ireland – will massively help to achieve this goal.

I am delighted to see the enactment of this law which will greatly enhance Ireland’s Employment Permits System with the ability of migrant workers to transfer a permit between employers after a certain amount of time and the introduction of a Seasonal Employment Permit later this year. These new measures will continue to make Ireland the destination of choice for skilled workers.”

The Employment Permits Act 2024 applies to non-EEA nationals who wish to take up eligible employment and residence in Ireland. The non-EEA national must secure an offer of employment in the State before applying for an employment permit and applications will be subject to a range of conditions including for example, minimum remuneration and skills and qualifications.

Main provisions of the Act

The Employment Permits Act will introduce a number of positive changes to the existing system, including:

The introduction of a Seasonal Employment Permit, based on strong labour rights, which will support the seasonal needs of certain sectors.
The ability to change an employment permit to a new employer after nine months to allow for better opportunities for workers and improve working conditions.
Moving operational details, such as the requirements of the Labour Market Needs Test to secondary legislation, which will allow the system to adapt quickly to changes in the labour market.
Requiring additional conditions such as training and accommodation support for employment permit holders, which will make Ireland a more attractive destination.
Allow for non-consultant hospital doctors to have a permit which will allow them to work at multiple sites, which will help to further streamline the system.
Allowing permit holders to be promoted within their roles without the need for a new permit.

Further details on the changes are outlined below.

Modernised Labour Market Needs Test (LMNT)

The labour market needs test is one of a range of criteria that must be met before an application for an Irish employment permit can be granted, and requires employers to advertise a role before offering it to a migrant worker, to help protect the domestic and EEA labour market.

Previously, employers were required to place three advertisements for a role, including in print media such as a national newspaper. The new Bill will simplify the process and reflect modern advertising practices by requiring employers to publish vacancies online only.

The new advertising requirements are as follows:

A notice must be placed with the Department of Social Protection Employment Services/EURES employment network for a minimum of 28 days (continuously); and
The notice must be placed on an additional online platform, also for a minimum of 28 continuous days. The online platform can be: Any website, software or electronic technology that provides online publication of information, with the principal purpose being to publish offers of employment.

Change of employer

Previously, the rules required permit holders to remain with the same employer for at least 12 months before changing employers, and the worker was required to submit a new application to do so.

The new legislation allows workers to change employers after 9 months without needing to submit a new application. However, some conditions must 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, a Carpenter (SOC code no. 5315) can only change to the same position of 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) can change to another position in the same category, such as Electrical Engineer (SOC code no. 2123).
You can only change employers up to 3 times.
A new contract of employment signed by both the new employer and employee is required to be submitted.
The employee is required to commence employment with the new employer within one month of the new permit being issued.
A new Labour Market Needs Test is not Required for General Employment Permit Holders.

The Revalidation rules remain, so if, under exceptional circumstances, you need to leave the company before the 9 months, you must follow the Revalidation process.

The new Employment Permit Act also allows for promotion and transfer within the same company where the permit holder would use the same skills, without the need to submit a new application.

Change in the 50:50 rule

Under Irish immigration law, an employment permit will not be issued unless at the time of application at least 50% of the employees in a firm are EEA nationals (50:50 rule).

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 will continue to have only this one employee.

In order to support the future expansion of businesses, the waiver to the 50:50 criteria for employers who have no employees at time of application has been revised and no longer restricts the employer to the one employee permit holder after grant. It no longer restricts the employer from expansion of their business in the future. The 50:50 rule will be triggered when a second application is made for an employment permit for the same employer. This change is expected to benefit new companies.

Provision is also made so that in the case of a contract for service agreement, the 50:50 criteria can be satisfied by the contractor, subcontractor or relevant person, in recognition of the fact that a contractor or subcontractor from outside the EEA may not have at least 50 percent EEA workers in its workforce.

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.

This scheme will be tested in a pilot project later this year and should commence in 2025.

Employers who wish to use the SEP must register annually to become a pre-approved seasonal employer. Approval will be based on the need for seasonal employment and the size of the company, valid for 12 months. The list of approved employers will be published, and any violation will affect future approvals.

Seasonal employment permit holders will be able to transfer their SEP to another Approved Seasonal Employer under the scheme through a simplified notification procedure.

Application refusals

The refusal reasons under the previous legislation remain largely unchanged except for the introduction of a discretionary ground for refusal where additional conditions that were attached to the grant of a certain permit type or occupation have not been respected or provided to the permit holder.

The review of decision to refuse grant process is adjusted under two circumstances. Where the reviewing officer is of the view that new refusal reasons that differ to the reasons notified is relevant, the officer may consider acting on that additional refusal. Before making a final decision the applicant will be afforded opportunity to make representations in relation to those reasons.

In addition, in circumstances where new information or change in circumstances is identified that is relevant to the decision to refuse or grant, the review officer may consider reverting the application back for full reconsideration.

Return of incomplete applications

The Act now provides the option for the Minister to return incomplete applications without full consideration, with a written notification to the applicant, along with the fee and any documentation provided. The Act also allows for the person who paid the application fee to nominate a person to receive the refund.

Impact on employers and migrant workers in Ireland

The Department has provided a document listing these changes in more detail, which is available on the DETE website here.

While these changes are seen as largely positive, as they remove several administrative burdens and make it easier for businesses to remain compliant, employers should carefully consider these changes and their impact on employees within their workforce.

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 thresholds remaining within the Irish standard of living.

For more information on Ireland’s employment permits, please contact the Global Immigration team at Smith Stone Walters.