Dee Murray, senior immigration manager at Fragomen Ireland, explains the recent legislative changes regarding employment permits and their impact on the retail sector.
Although only 1.1% of employment permits issued so far in 2024 have gone to the wholesale and retail sector (a slight increase from 0.9% in 2023), retail remains the largest or second largest employer in every region in the country, accounting for 12% to 15% of the workforce, as of September.
Considering these numbers, does current business immigration policy adequately support local businesses in this sector as they face ongoing challenges in attracting and retaining talent?
As a result of the 2024 Employment Permits legal framework, beginning in January 2025, Irish businesses will likely need to offer a minimum annual salary of €39,000 based on a 39-hour work week to sponsor employees for an employment permit.
This presents a significant challenge for employers in the retail sector to retain or hire top talent, considering that many roles in the industry are part-time, making it even more difficult to meet that salary band.
However, even if a business can meet this salary threshold, it is just one hurdle to obtaining sponsorship for an employee as they must also meet strict eligibility rules for permits.
Shopkeepers, retail cashiers and check-out operators, for example, are all listed as ‘ineligible roles’ for sponsorship.
More ‘skilled’ roles, such as buyers and procurement officers, may be eligible for sponsorship once they are able to meet those high salary thresholds.
Who can work without any sponsorship?
Currently, only nationals from the UK, EEA and Switzerland tend to have the ability to be employed in Ireland without a sponsorship.
Outside this population, business can also look to the following individuals, who can generally work in Ireland without sponsorship: Non-EEA students with valid Stamp 2 permission.
This population can engage in ‘casual work’ and work up to 20 hours per week in the retail sector, and up to 40 hours per week during the summer months (June, July, August and September).
They also qualify for full-time work during the busy Christmas period from 15 December to 15 January for up to 40 hours a week.
Spouses of employment permit holders.
As of 2024, the spouses of holders of Intra Company Transfer Employment Permits, General Employment Permits and Critical Skills Employment Permits can all obtain a ‘Stamp 1G’ permission, enabling them to work in the sector without the need for sponsorship.
This is a welcome development as it expands the talent pool.
However, it is the responsibility of the hiring business to determine on what basis someone has a Stamp 1G, as it is not always easy to ascertain.
Individuals can hold a 1G as a graduate student or as the spouse of a permit holder, so businesses will need to ask the candidate on what basis they have that permission.
Spouses of UK, EU and Irish nationals with a valid ‘Stamp 4 permission.’
This permission is most often issued to spouses or recognised de facto partners of EU, UK and Irish nationals who reside with their partner in Ireland, and it allows them to work in the country without sponsorship.
Stamp 4 permission can also be derived from other applications and permissions.
For example, those who have been granted refugee status in Ireland will receive a Stamp 4 permission, allowing them to freely work in the retail sector.
Ukrainian nationals on Temporary Protection also currently receive Stamp 4 permission, so they won’t need sponsorship in Ireland.
Other individuals that have not been referenced above may also be eligible to work on a Stamp 4 permission, like those who have received Stamp 4 permission after several years on a permit.
The above list is non-exhaustive – there may be other permissions where individuals can work without sponsorship, but the above highlights some more common types of permission that the sector can look at when recruiting for talent.
I am employing non-EEA nationals. Are there any immigration compliance considerations that I need to be aware of?
Given the already restrictive policies in the retail sector, it is crucial for businesses to understand the importance of implementing and maintaining a robust immigration compliance system to ensure adherence to the established regulations.
Irish employers are under increased scrutiny for non-compliance with immigration rules.
The government has recently indicated that it will step up enforcement of workplace immigration compliance, with Taoiseach Simon Harris noting in May that Ireland needs increased workplace inspections.
Immigration compliance in the workplace is governed by both specific employment permit legislation and general immigration laws.
This means that both employers and employees need to be aware of several key compliance factors to remain within the rules.
The Workplace Relations Commission (WRC) has been increasing its inspections related to immigration compliance in various industries.
These inspections tend to occur without warning and are usually unannounced.
In the past year, 56% of the 6,519 inspections were unannounced, and 42% were full audits not limited to a specific complaint or breach.
During these inspections, employers may be asked to provide immigration documentation for all qualified employees.
Full audits can be lengthy and involve extensive document verification, potentially impacting an employer’s ability to utilise the employment permits system.
The number of workplace inspections has been increasing annually, with approximately 700 more inspections in 2023 compared to 2022.
Given the growing government focus on this issue, the number of inspections is expected to continue rising into next year.
What else can the retail sector do to address the shortage of talent right now?
While employment permits may be a bridge too far for the sector right now, this might not always be the case. Irish immigration can and does respond to labour market shortages in the country.
Taking the example of the construction sector, in 2020 it was unthinkable that several roles would ever be eligible for an employment permit.
However, following government consultation periods (also open to the retail sector), the Irish government announced significant changes to ineligible occupations lists, and now tilers, plasterers and electricians (to name a few) are all roles eligible for employment permits, as the country attempts to tackle systemic labour market shortages.
Although there is no consultation period currently open, these opportunities arise regularly and offer businesses the chance to voice their feedback, raise concerns and propose changes to occupation lists.
Importantly, these periods offer companies a way to advocate for more favourable immigration policies that better support their sector’s needs and the economy.
About the author
Deirdre Murray is a senior immigration manager in the Dublin office of Fragomen, a leading immigration services provider to companies around the world. To find out more about how the new employment permits system framework and how it affects your business, you can reach out to Fragomen Ireland.
