Law to introduce student work permits

ALL STUDENTS from outside the European Economic Area (EEA) will have to have work permits if they wish to work here, under a …

ALL STUDENTS from outside the European Economic Area (EEA) will have to have work permits if they wish to work here, under a new scheme to be introduced by the Government.

Minister for Enterprise and Employment Micheál Martin said yesterday that some trade unions, particularly in the retail sector, had expressed concern that such students were being exploited and employed as cheap labour, leading to the displacement of Irish staff.

Currently, students from outside the EEA are allowed to work up to 20 hours per week.

The Minister said it was an objective of the Government to increase wealth generated through the education sector and that steps had been taken to facilitate students from abroad coming to study in Ireland. "However, we do not want a situation where that phenomenon is exploited by unscrupulous people in essence to bring cheap labour in through the back door," he said.

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Mr Martin said that the Government would be writing to the social partners about the student work permit proposals shortly.

Mr Martin made the announcement at the launch of new Government legislation aimed at improving compliance with employment law.

The new employment law compliance legislation will give greater powers to labour inspectors and significantly increase penalties for employment law offences.

Under the Bill, all employees will have to display clearly-worded notices advising employees of their rights under employment legislation, how to seek redress and how to contact the new National Employment Rights Authority (Nera) for information.

Employers will also have to keep documents regarding the employment of workers going back at least three years and for two years after staff leave. The Bill will make it an offence for an employer to falsify, conceal or destroy any relevant record so as to thwart an investigation by Nera.

The legislation will establish Nera on a statutory footing and give it greater powers for inspection. Inspectors will have greater powers to access premises and remove and retain records on staff. They will also be able to prosecute summary offences.

The new legislation provides for greater penalties for offences arising under employment law - in most cases up to €5,000 in fines and/or 12 months imprisonment for summary offences and €250,000 and/or three years in jail for indictable offences.

People who are convicted may also have to pay the costs of Nera's inspection. Mr Martin said that the new Bill fulfilled the commitment set out in the national agreement Towards 2016 to fundamentally enhance protection for vulnerable employees and low-paid staff.

However, he added that the vast majority of employers were complying with labour law and had nothing to fear from the Bill.

"This is the most significant single piece of legislation introduced in the employment rights area in recent years. It is a reminder that, in the drive for greater competitiveness, there is a need to ensure that responsible employers who meet their obligations to employees will have a level playing field."

The new Bill was broadly welcomed by the trade union movement, although employers' group Isme said it would have a major effect on small businesses.

The Irish Congress of Trade Unions (Ictu) said that, broadly speaking, the new Bill appeared reasonably good.

However, it expressed concern that there was a major gap in that employers were not specifically required to keep employment records within the State.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent