Employment Agencies must be Licensed

6 Apr 2006

Restrictions on use of Agency Workers needed

Congress today (6 April) called for the introduction of a licensing system for employment agencies and restrictions on the use of agency workers to prevent displacement.

Speaking at the Recruitment Federation of Ireland's annual conference, Congress Policy Officer, Esther Lynch said it was now imperative that legislation be introduced to "make it unlawful for an employment agency to operate in Ireland, without a licence.

"And to ensure the same rule applies to agencies operating overseas, or via the internet, it should be illegal for an employer in Ireland to use or subcontract work to an unregistered agency. This matter is a priority for Congress, in the current social partnership talks."

Ms Lynch cited the case of a Polish agency that recently contacted Irish employers offering to supply workers for under €5 per hour. The agency called the practice "leasing workers." The legal Irish minimum wage is €7.65 per hour.

Ms Lynch said was it obvious that some agencies were exploiting the current lack of regulation and engaging in "sharp practice." But, as matters stood, they were doing nothing illegal.

New legislation could help address the displacement issue by prohibiting the use of agency workers, in certain situations, such as: to replace striking workers; to fill vacancies arising from unfair dismissal, or redundancies on economic grounds.

"The introduction of these restrictions, in tandem with an effective licensing system would represent a major step towards preventing displacement and the exploitation of vulnerable workers," Ms Lynch said.

Ms Lynch said it would also be necessary to prohibit certain agency practices, such as the use of 'gangmasters', and any new legislation would require proper monitoring and effective sanctions.

 

ends