Employers could face fines of up to €100,000 for breaches of labour laws under measures to be outlined by the Government in talks on a new national partnership programme.
A radical increase in current penalties for those found to have exploited workers is one of a number of proposals designed to break the deadlock in negotiations.
Plans to appoint at least 20 additional labour inspectors and increase the number of rights commissioners will also be unveiled at the talks, which resume at Government Buildings today.
It is also expected that the labour inspectorate, which currently has 31 posts, will be removed from the control of the Department of Enterprise, Trade and Employment.
Unions have demanded that the inspectorate be established as an independent agency. An alternative proposal being considered, however, is that it be merged with the Health and Safety Authority.
The proposals are likely to be part of a package of measures outlined at the talks, possibly as early as today, by Department of the Taoiseach secretary general Dermot McCarthy.
It is understood heavier fines for breaches of legislation on pay and working conditions will be a key element of the package.
Offences uncovered by the labour inspectorate under existing legislation carry maximum fines of €3,000. In practice, however, employers who agree to rectify breaches tend not to face prosecution.
Labour inspectors, in a report prepared for the Government last year, cited inadequate penalties as one of a range of factors inhibiting them from effectively policing employment legislation.
After six weeks of deadlock since negotiations on a successor to Sustaining Progress began, there is now increasing optimism that a deal can be reached.
Employers remain opposed to union calls for new legislation to ensure workers are paid the "going rate" for a job.
But there are indications that a deal could be achieved on mechanisms to prevent employers from making workers redundant simply to replace them with others on lower rates of pay.
A major push to achieve at least the outline of a deal on the employment standards issue will be made over the coming days.
If sufficient common ground is established, the two sides could then begin to address the issue of pay increases. The intention of the parties is to try to find at least the basis for an agreement by the end of the month.