Work permit changes to hit firms

COMPANIES applying for work permits face a range of restrictions in the new year as the Government aims to clampdown on abuses of the system.

In spite of the economic downturn and the introduction of limitations at the start of the year, demand for work permits by employers has continued to grow to top the 40,000 mark.

From January, the department will be listing the names of companies and individuals employing work permit holders and releasing every document submitted, as officials hope to cut down on the levels of abuse by having the system open to public scrutiny.

Also in the new year, a new security-coded, individually-numbered work permit will be introduced and the long-awaited work permit legislation is due.

No prosecutions have been taken in recent years for abuse of the work permit regulations.

Applications for workers in the IT sector are processed faster than other applications as there is a suspicion that this area is being abused since the downturn in the IT market.

The cost of a work permit will also increase by 100 to 500. Earlier this year, the cost of work permits doubled and employers had to advertise with FÁS for four weeks to prove they attempted to fill vacancies in this country.

Yet already this year 40,265 work permits have been issued almost 5,000 more than in 2001 including 23,303 new permits.

Recruitment companies are also set to come in for closer scrutiny following the uncovering of a series of illegal immigrant scams. The abuse of immigrant schemes was primarily perpetrated by unscrupulous recruitment agencies.

Following on from the economic boom of recent years, the number of recruitment companies has increased to 565 including 369 in Dublin, many of which specialise in foreign workers.

Recruitment companies must be registered with the Department of Enterprise, Trade and Employment, according to officials.

"Under the Employment Agency Act, 1971, an applicant for an employment agency licence must, in the opinion of the minister, be a person of good character and repute," an official said.

Yet in the past five years, not one agency has been refused a licence and no licences have been revoked.

"The minister has not revoked any employment agency licence on the grounds that the holder is not, in his opinion, a suitable person to carry on the business of an employment agency."