The Irish food industry, and in particular small businesses in the sector, tend to be most likely to hire migrants and fail to register them properly and so depriving them of workers’ rights, according to a report from the Economic and Social and Research Institute (ESRI).
While reliable data on the extent of “irregular employment” of non-EU nationals is limited, an ESRI report has said it occurs across “a range of sectors” in Ireland, particularly in “food service activity”, and mainly within small enterprises.
The food service activity sector accounted for 54 per cent of employment permit law breaches in 2023, with 12 per cent in hair and beauty, and 11 per cent in wholesale, the report said.
“Irregular employment presents problems for the State in terms of tax revenue and regulation, whether it is undertaken by Irish or non-Irish nationals,” the ESRI said.
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It includes situations in which non-EU nationals are employed in undeclared work, work outside the conditions of their residence permits, or work while irregularly residing in the country.
“For non-EU nationals, working in an irregular situation can create precarity,” the report said. “For example, difficulties accessing social security. Undocumented workers may be reluctant to report poor working conditions due to a fear of losing their job or being deported.”
The report pointed out that nongovernmental organisations emphasise the importance of “information firewalls” to encourage the reporting of exploitation and to protect migrant workers.
Employment inspections here are led by Workplace Relations Commission (WRC), as well as Revenue, the Department of Social Protection and the Garda.
Some 4,727 employment inspection cases were undertaken last year, and 293 breaches of employment permits legislation were detected.
However, the ESRI said the number of employment inspectors “raised concerns” about the effectiveness of enforcement efforts. In January, 63 WRC inspectors were operating nationally, it said.
Revenue data indicates there were 191,600 employers in the State in 2023, which gives an overall inspection rate of 2.5 per cent, the report added.
The number of WRC inspectors is to increase to 80 during 2024. “This is particularly important in light of the steep increase in employment permits issued in recent years, and the planned introduction of a new seasonal employment permit,” the think-tank said.
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