While reliable data on the extent of irregular employment of non-EU nationals is limited, new EMN Ireland/ ESRI research published today shows that it occurs across a range of sectors in Ireland, particularly in ‘food service activity’, and mainly within small enterprises. The food service activity sector accounted for 54 per cent of employment permit law breaches in 2023 with 12 per cent in hair and beauty, and 11 per cent in wholesale.
Irregular employment presents problems for the State in terms of tax revenue and regulation, whether it is undertaken by Irish or non-Irish nationals. In this report, it includes situations in which non-EU nationals are employed in undeclared work, work outside the conditions of their residence permits, or work while irregularly residing in the country. For non-EU nationals, working in an irregular situation can create precarity, for example, difficulties accessing social security. Undocumented workers may be reluctant to report poor working conditions due to a fear of losing their job or being deported. NGOs emphasise the importance of information firewalls to encourage the reporting of exploitation and to protect migrant workers.
Findings
Inspections
- Employment inspections are led by Workplace Relations Commission (WRC), in cooperation with other authorities including Revenue, Department of Social Protection and An Garda Síochána, to check compliance with employment law. In 2023, 4,727 employment inspection cases were undertaken and 293 breaches of employment permits legislation were detected.
- However, the number of employment inspectors raises concerns about the effectiveness of enforcement efforts. In January 2024, 63 WRC inspectors were operating nationally.
- Revenue data indicate that there were 191,600 employers in the State in 2023, which gives an overall inspection rate of 2.5%.
- The number of WRC inspectors is planned to increase to 80 during 2024. This is particularly important in light of the steep increase in employment permits issued in recent years, and the planned introduction of a new seasonal employment permit.
Regularisation schemes
- While addressing irregular employment is not found to be a policy priority in itself, the regularisation of undocumented migrants emerged as a pivotal related strategy in Ireland in recent years.
- Two regularisation schemes have been held: the 2018 scheme targeting undocumented former students (under which 2,253 people were granted residence), and the 2022 Regularisation of Long-Term Undocumented Migrants Scheme (4,617 people granted residence as of mid-2023).
- Of working age applicants to the latter, 55% were in employment and 11% were self-employed. Half were employed in one of three sectors: ’hospitality/tourism’, ‘food and drink’ and ‘cleaning/maintenance’.
Increased mobility for employment permit holders, remedies
- The Employment Permits Act 2024 also includes important new measures allowing workers on General or Critical Skills Employment Permits to change employers without needing to apply for a new permit.
- Previously, holders of General Employment Permits could only change employers after one year and needed a new permit to do so. New 2024 regulations set the minimum period before changing at nine months.
- This move has been welcomed by NGOs, who have long stressed the need to support workers to stay in legal employment even when forced to leave due to poor conditions.
Remedies
Non-EU nationals working irregularly have limited access to legal remedies. The new Employment Permits Act 2024 seeks to bring further clarity to situations where the contract of employment is unenforceable due to the lack of an employment permit. This means that some contractual protections are now enforceable, but the provisions are yet to be tested.
