Legislation on way to curb rogue employment agencies

The Government is to clamp down on rogue employment agencies supplying labour to workplaces around the State, under the terms of draft legislation circulated by the Department of Enterprise, Trade and Employment.

Under the proposed legislation all employment agencies would in future need a licence and would have to follow a new code of practice.

It is expected that compliance with the code would be a condition of securing and retaining the licence.

Agencies would not be allowed to pay workers less than the national minimum wage or rates lower than those set out in negotiated employment agreements for particular sectors.

Informed sources said that in future each employee would have to have an identifiable employer within the State who would have legal responsibility for compliance with all aspects of employment legislation.

The new legislation would also define an agency and an employee. Informed sources said the legislation would aim to bring greater clarity.

Last week the president of Siptu, Jack O'Connor, expressed concern at the activities of some of the 520 employment agencies now operating in Ireland.

"Migrant workers are particularly exposed to exploitation by crooked employment agencies operating on the fringes of the law. These agencies exploit the vulnerability that comes with language barriers and ignorance of Irish employment rights. Unscrupulous employers take advantage of loopholes in the existing legislation to funnel cheap labour into our workplaces and prevent workers from acquiring employment rights and security of tenure.

"While there are many reputable employment agencies, there is a growing proliferation of rogue agents that find their niche as suppliers of cheap, expendable labour. They are little better than the slave traders of yesteryear," he said.

Mr O'Connor said that there were now 520 licensed employment agencies in the Republic and an unknown number based offshore supplying our labour market.

"As the Central Statistics Office does not gather information on agency workers, we do not know the rate at which this trend is increasing or the terms and conditions under which people are employed. However, the European Foundation for the Improvement of Living and Working Conditions has identified Ireland as the country with the highest percentage of those employed with a temporary agency employment contract in the EU," he said.

The new legislation follows on from a commitment in the National Partnership Agreement, Towards 2016.

It is expected to be brought to Cabinet within the next few weeks.

The Government is already planning to increase the number of labour inspectors around the State as part of an improved employment rights service.

Last year Minister for Enterprise, Trade and Employment Micheál Martin criticised cases where workers employed by sub-contractors and agents were receiving significantly less than the rate of pay set out in registered employment agreements for particular sectors.

The trade union movement, which pressed strongly for improved protection of employment rights as part of the social partnership negotiations last year, are expected to seek details of progress in this area at meetings with Taoiseach Bertie Ahern later this month.