On September 2, 2024, Ireland's Employment Permits Act, the biggest reform of Ireland's employment permits since 2006, went into effect. The changes are meant to create a more flexible system to respond to the evolving labor market in Ireland.
Another significant change includes the digitization of the labor market test, streamlining the hiring process by making it easier to prove that no local workers are available for the job. Employers will now submit job postings electronically through a centralized platform, which is expected to accelerate the application process.
The Act allows for employees to change employers after 9 months of employment instead of the previous 12 months. Among other restrictions, an employee can only change employers up to 3 times. In addition, when a foreign worker obtains a new employment permit, their old one is automatically canceled, eliminating unnecessary administrative burdens.
Salary thresholds for different categories of permits will now be reviewed annually and tied to changes in the national average wage. This ensures that foreign workers are paid fair wages in line with the local labor market.
These changes aim to balance Ireland's need for foreign workers while maintaining high standards for employment conditions and compliance. The reforms should make the process more efficient and attractive to both employers and workers, helping to fill critical labor shortages across several sectors. While they are seen as beneficial for reducing administrative burdens and simplifying compliance, employers should carefully assess how the reforms may impact their employees and overall workforce dynamics.
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