The Employment Permits Act 2024 came into effect on Monday, 2 September 2024.  It consolidates and updates the existing employment permits legislation, with the aim of creating a more flexible and up to date system.

Many of the changes illustrate the intention of the Minister for Enterprise Trade and Employment (the Minister) to bring the permit system in line with modern labour market practices and to enhance the operational features of the employment permit system, bringing benefits for employers and permit holders.

We have summarised below some of the key changes:

• A change to the Labour Market Needs Test, which is required as part of the application process for certain permits, means that advertising a job vacancy in a printed newspaper is no longer required. Publication of the job vacancy with the Department of Social Protection/EURES Employment Network and one additional online platform for a minimum of 28 continuous days, is sufficient.
• Permit applications may now be accepted in a wider range of employment situations (i.e., by employment agencies and employers of record) and not just where there is a direct employer employee relationship. The Department of Enterprise Trade and Employment (the Department) will now accept applications even where the employer is a different entity to the entity that the individual will be working for and paid by.
• Recognising the wider range of contracting and employment relationships in existence, sub-contractors can now apply for the Contract for Service Employment Permit in the same manner as a standard contractor.
• Holders of General Employment Permits, and Critical Skills Employment Permits can change their employer after a period of nine months on their first employment permit, without the need for a new permit.  This is restricted to movement within the same occupation or occupation classification and subject to the permit being in force for at least a further two months at the time of the application.  No new Labour Market Needs Test is required.
• The timeframe before an employment permit holder who wishes to change employer can apply for a new permit has been reduced from twelve months to nine months. Where there has been a change of circumstances or instances of exploitation, discretion may be exercised to grant a new permit prior to the nine-month period.
• Recognising the varied need for workers in certain sectors, the new Seasonal Employment Permit (SEP) is a short-term employment permit for up to seven months per calendar year in a seasonally recurrent employment.  The aim is to assist with labour shortages in sectors such as horticulture and agriculture.  The permit will be renewable across multiple years for the set calendar season.  The SEP will initially be introduced under a limited pilot scheme later this year with the intention that it commence in early 2025.  Employers wishing to apply for the new SEP will be required to apply annually to become registered pre-approved seasonal employers, in order to access the scheme.
• Seasonal employment permit holders may remain with the same employer each season using a simplified renewal process or they can transfer during the working season to another approved seasonal employer through a simplified notification procedure.
• Provided the employment type remains eligible for a permit, there is no longer a need to apply for a new employment permit where an employee is promoted or transferred internally but continues working with the same company, using the same skills.
• Employment permit holders must begin their employment within a period of six months from when the employment permit is granted or comes into effect.  This time limit is aimed at ensuring permits are utilised promptly and delays in filling labour shortages are reduced.
• Minimum annual remuneration thresholds applicable to employment permits will be subject to indexation against the annual change in mean weekly earnings as calculated by the Central Statistics Office.
• Existing permits will automatically be cancelled by the Department on the issue of a new permit.  As an individual may not hold more than one employment permit, those applying for employment permits had to cancel an existing and valid employment permit before a new employment permit would be granted.  This is no longer required, and the Minister will now notify the foreign national and the employer identified on that employment permit in writing that the permit is cancelled with effect from a date specified.
• A new two-year multi-site General Employment Permit applicable to foreign national doctors who take six-month employment contracts as non-consultant hospital doctors in health facilities in different locations, has been introduced.  This eliminates the need for multiple applications for each employing hospital within the two-year period.
• Employment permit quotas were also extended in the home care sector and for line-workers, recognising the increasing pressure in these areas in supporting older people to remain in their homes for longer and to ensure skills are available for climate action plans and housing growth.

As most of the changes, other than the introduction of the new seasonal employment permit, came into effect immediately on 2 September 2024, employers will need to quickly adjust to the new rules.  It is expected however, that many of the changes will be seen as an improvement to the process for both employers and permit holders.

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