In November 2000 I decided to undertake a review of the Employment Agency Act, 1971.
The background to the review is that the Employment Agency Act has been in place for almost thirty years now. The employment market in Ireland has been transformed in recent years, driven by increased employment opportunities. Employment agencies have responded by developing their services to meet the needs of employers and potential employees. Such services are increasingly provided by the Internet and across borders by the same means. Increasingly, the services of employment agencies are being developed by e-business, while the 1971 Act operated on the notion of services being provided from an establishment.
Furthermore, the recent publicity relating to the alleged charging of fees by employment agencies to non-EU nationals seeking employment in Ireland has emphasised the need to review the legislation to see if it still adequately meets current labour market requirements.
I have written to the social partners and other interested parties requesting their views regarding the review. On receipt of these views I will consult with the parties concerned with a view to determining the best way forward. Following this, it may be necessary to consult with the Attorney General on any legal implications involved. I would expect to advance the review considerably by autumn of this year.
With regard to recent media reports regarding the abuse of non-nationals being placed in employment here, the position is that section 7 of the Employment Agency Act, 1971 provides that an employment agency shall not charge any fees or expenses in respect of services rendered in the course of the business, in excess of a scale approved by the Minister. The agency is also required to prepare and submit a scale of such fees to the Minister for approval.
Section 7 further provides that a person carrying on the business of an employment agency shall not charge any fee solely for agreeing to seek employment for another person or solely for agreeing to seek persons who will give or accept employment.
Some employers, when applying for work permits to employ non EEA nationals, use the services of third parties, such as solicitors, accountants, foreign employment agencies etc. in handling the applications and the associated correspondence.