A new labour standards enforcement agency with sweeping powers to combat breaches of employment law is being considered in talks on a new partnership deal.
However, employers and unions remained at loggerheads last night over the extent to which new legislation is required to underpin job standards.
Talks are likely to continue through the weekend in an attempt to find a measure of agreement on this issue before the parties move on to other matters, including pay.
Negotiations were described by a source as "painfully slow", however, and there is still no certainty that a deal can be achieved.
The proposed new enforcement agency is expected to form part of a Government package to address union concerns about lack of compliance with existing employment laws.
An idea under consideration is that the new agency would have a regulatory role similar to that assigned to the director of corporate enforcement in the area of company law.
Its powers could also include the right to liaise with the Revenue Commissioners and the Department of Social and Family Affairs in cases where employers are suspected of failing to comply with labour laws.
The Government's labour inspectorate, which currently polices compliance with pay and working hours legislation, would be attached to the new agency.
As previously reported in The Irish Times, increased penalties of up to €100,000 for noncompliant employers and the appointment of up to 40 additional labour inspectors are also on the cards. There are currently 31 inspectors.
It has been clear for some time that an agreement on measures to enhance enforcement of existing legislation would be possible.
The sticking point continues to be the demand by the Irish Congress of Trade Unions that new legislation is also needed to combat exploitation and the displacement of jobs.
In particular, Ictu wants new laws to prevent employers from making staff collectively redundant to replace them with cheaper labour. The employers' body, Ibec, says it is willing to engage on this issue, but only as long as employers are not barred from implementing what it regards as legitimate cost-cutting measures.
These include outsourcing jobs, changing work practices and reducing staffing levels.
The two sides have been unable to date to agree on a legislative framework that would be sufficiently watertight to meet union concerns, but flexible enough to secure the support of employers.
Intensive talks are set to continue today and probably tomorrow. Failure to agree would put the talks, and the future of social partnership, in jeopardy.
If the parties can arrive at an outline agreement on labour standards, they would most likely move on to the pay agenda, with a view to finalising a deal later this month.