Written answers

Thursday, 26 April 2007

Department of Enterprise, Trade and Employment

Employment Rights

5:00 pm

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 21: To ask the Minister for Enterprise, Trade and Employment his views, in view of the stark difference in the number of work permits issued to Romanian and Bulgarian nationals as against the number of PPS numbers issued to Romanian and Bulgarian nationals in 2007, on whether there is a significant problem of so called false contracting being used to exploit such workers; the steps he is taking to ensure that workers are not exploited through incorrect use of contracts to avoid employers' duties and responsibilities; and if he will make a statement on the matter. [15458/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Nationals of Romania and Bulgaria may only come to Ireland to be employed by an employer if they are the subject of an employment permit application. Up to 24th April, 2007 of this year, 18 new employment permits were issued in respect of Romanian nationals, and 5 new employment permits in respect of Bulgarian nationals.

I understand that the Department of Social and Family Affairs issued 6,877 PPS numbers up to 14th April, 2007 to Romanian nationals and 327 to Bulgarian nationals. Since January, when 3,237 PPS numbers were issued to Romanian nationals and 110 to Bulgarian nationals, there has been a steady downward trend in the number of PPS numbers issued, with 1,216 issued to Romanians and 88 to Bulgarians in March, and 419 issued to Romanians and 19 to Bulgarians for the first 2 weeks of April, 2007.

Under EU rules nationals of Romania and Bulgaria may come to Ireland and set up a business here and be self-employed. However, the self employment must be genuine.

A major package of measures has been agreed by the parties to Towards 2016, the new Social Partnership Agreement, to provide for enhanced public confidence in the system of employment rights compliance. New legislation will be published by my Department later this year which will empower the Labour Inspectorate to join with the Department of Social and Family Affairs and the Revenue Commissioners to work together in Joint Investigation Units. Such units will have a particular focus on the employment status of workers. In addition, Sections 31 and 38 of the Social Welfare and Pensions Act 2007 (No. 8) provide for exchanges of employment information between the Minister for Enterprise, Trade & Employment/the National Employment Rights Authority and the Minister for Social and Family Affairs and the Revenue Commissioners so as to facilitate Joint Investigations of employments suspected of contravening the law.

I am informed by the Department of Social and Family Affairs and the Revenue Commissioners that attention is paid by them to the matter of bogus self employment in the course of their compliance activities and appropriate action taken. Complaints in relation to bogus self-employment should be referred to all or any of the following – the Labour Inspectorate of the National Employment Rights Authority, the Department of Social and Family Affairs or the Revenue Commissioners.

New legislation, to be published by my Department later this year, will provide for enhanced employment rights measures including the establishment of the National Employment Rights Authority, which has already been established on an interim basis. Providing for greater clarity in the application of employment rights legislation to employees and the self-employed will be considered in the context of drawing up that legislation.

The package of measures provided for under Towards 2016 will be supported by enhanced employment rights promotional and educational efforts. The Social Partners and other organisations such as the Department of Social and Family Affairs and the Revenue Commissioners will be invited to bring their knowledge and networks to bear on the design and delivery of this education and awareness programme which, it is anticipated, will also address the issues associated with bogus self-employment.

Towards 2016 also includes a number of other specific commitments in relation to employment status and in relation to the "Hidden Economy". The Government and social partners have agreed under Towards 2016 to review the application of the existing Code of Practice on employee status with a view to more effective implementation. My Department will be actively involved in that review. In addition, the Government and the social partners agreed under Towards 2016 to continue and expand the Hidden Economy Working Group, which comprises representatives of Office of the Revenue Commissioners, the Department of Social and Family Affairs, the Irish Congress of Trade Unions, the Irish Business and Employers Confederation, the Small Firms Association and the Construction Industry Federation.

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