Article

Work permit rules tightened due to economic downturn

Published: 4 February 2002

The Irish government has made new work permit applications for workers from outside theEuropean Economic Area (EEA) more difficult, by insisting that applications be accompanied by a letter from the Training and Employment Authority (FAS), and by introducing a substantially higher application fee. The new regime, announced in December 2001, applies from 2 January 2002.

From January 2002, Ireland has tightened up its work permit regime for non-EEA nationals, which had been relatively liberal in recent times. The move was triggered by job losses in the past year, but employers are unhappy with the extra 'red tape' involved.

The Irish government has made new work permit applications for workers from outside theEuropean Economic Area (EEA) more difficult, by insisting that applications be accompanied by a letter from the Training and Employment Authority (FAS), and by introducing a substantially higher application fee. The new regime, announced in December 2001, applies from 2 January 2002.

The letter from FAS is to confirm that 'all reasonable efforts' have been made by the employer to fill the vacancy from within the EEA. To receive such a letter, employers have to register their vacancy with FAS, which places it on their database. If the vacancy is unfilled, the employer has to contact FAS and then fill out more documentation so that FAS can prepare the letter needed for the work permit application. FAS has claimed that this procedure can be completed in less than a month.

While this is a significant change from the more laissez faire approach to work permits that prevailed for much of 2000-1, it re-establishes a regime similar to that which existed before then. The system had been liberalised due to pressure on the work permit system and reports of delays in processing applications.

The application fee for work permits has been increased, from EUR 159 to EUR 400. This is the most substantial increase for some years. Brendan Butler, the director of the industry lobby group, Information & Communication Technology Ireland (ICT Ireland), has warned that this fee could be a deterrent for young companies without a strong cash base.

The Minister for Enterprise, Trade and Employment, Mary Harney, has justified the new restrictions by saying that work permits 'should reflect prevailing labour market conditions'. She added: 'This has not been the case in recent months and in fact, we had reached a situation where applications for work permits were continuing to increase despite recent job losses and the generally acknowledged prospects for a slower rate of growth in the economy.'

Almost 35,000 work permits were issued during 2001 – a year of increasing job losses - compared with 18,000 in 2000. However, employers have said that labour shortages continue to exist in certain areas.

A separate work visa scheme for medical and other professionals remains unaffected by the new restrictions and the government has said that it will continue to facilitate the renewal of permits for existing employees.

Eurofound recommends citing this publication in the following way.

Eurofound (2002), Work permit rules tightened due to economic downturn, article.

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