Key changes to Ireland’s employment permits, and what it means for employers

Key changes for employment permit holders

The new Employment Permits Act 2024 has been put in place for individuals originating from outside the European Economic Area (EEA). The goal is to make it less complicated for these individuals to gain employment and reside in Ireland. This new legislation is a testament to the government's commitment to making the permit system more adaptable, which will enable it to react to changes in the labour market more quickly.

• Enhanced worker mobility: One of the key updates in this policy is the allowance for some employment permit holders to switch employers after just nine months. This move is expected to significantly enhance worker mobility. Additionally, the introduction of a seasonal employment permit is designed to accommodate the unique needs of certain industries, such as fruit picking, that heavily depend on seasonal labour.
• Greater safeguarding of employee rights: Ireland's minister for enterprise, trade, and employment, Peter Burke, highlighted that the updates to the Employment Permits Acts will not only create a more adaptable system but also ensure that the rights of the employees are safeguarded.
• Contractors can now access the permits: The new regulations have also introduced an opportunity for subcontractors to gain access to the employment permit system. This is a significant step towards broadening opportunities for foreign workers across various industries. However, with new rules come new responsibilities. Employers will now be required to meet additional requirements, such as making provisions for training and accommodation support for permit holders.
• Employment agencies can obtain permits for their contractors: Previously, employment agencies were strictly prohibited from being able to obtain employment permits for their agency workers. The new system will now allow for employment permits to be issued in situations where an entity other that the employer is paying the salary of an employment permit holder. This allows employment agencies to be listed as the employer of the employment permit holder, even when the individual will be conducting work for a client of that employment agency and potentially be paid by that client. 

Is this the solution to the challenges facing the Irish labour market? 

As part of our most recent Market Insight & Salary Trend Report, we asked our Irish community “what do you perceive as the biggest challenge facing the workforce in Ireland?”  But only 29% of people perceived shortage of labour as the most pressing issue. Lack of housing and unaligned working from home preferences are amongst the issues affecting businesses. 

With that being said, housing supply is slowly increasing, with 33,000 new houses being built in 2023 – nearly double the 2017 total.

Furthermore, the push and pull between employees wanting hybrid and remote working opportunities is not unique to Ireland. In fact, 98% of businesses are encouraging employees to return to the office and only 27% of employers have more than half of their workforce hybrid working.

 However, businesses where hybrid and remote working is an option, will always receive interest in their roles. Therefore, where businesses are able to offer these options, they are in an excellent opportunity to engage top level candidates. 

How can employers take advantage of this opportunity? 

Opportunity 2: as a result of simplifying the permit system, businesses can access a wider range of out of country talent. This is a significant step in addressing labour market needs and retaining existing talent as these changes are anticipated to simplify the permit process for both foreign workers and employers.

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