Intra-company Transfer EP - Department of Jobs, Enterprise and

Report
Presentation to Stakeholders
Friday 25th July 2014
Introduction by:

Mr. Martin Shanagher

Ms. Fiona Flood
Recap Employment Permit Changes
introduced in 2013
Recap EP Changes introduced
•
Less supporting documentation required and move to declarations
•
For LMNT: Reduce SOLAS/EURES advertising requirements from 8 to 2
weeks
•
Newspaper ads need only run for 3 days (from 6)
•
Remove various restrictions to applicants from within Ireland if they have
a valid legal status and GNIB; e.g. Intra-CT EP and CSP EP holders can
now apply for other EPs
•
Remove 5% Restriction re Intra-CTs
•
Improved Website information
•
Extended call centre to full working week for inquiries
Recap EP Changes introduced
• E-Forms introduced
• Highly Skilled Occupations List now broadened and correlated
with known skills shortages in economy.
• Reduction of €30k salary threshold in certain circumstances:
•
(i) to Industry norm (€27k) for IT Graduates (both graduates of Irish and
foreign colleges, and
•
(ii) to €27k for Specialist Language Support & Technical or Sales Support
with fluency in a non-EEA language for client companies of the Enterprise
Development Agencies.
• All applications considered with reference to remuneration rather
than ‘salary’ so that board, accommodation, health insurance can
reckon towards remuneration
Collaboration with Department of
Justice
•
Providing for ‘Atypical Workers’ - permissions to work for
<90 days.
•
Provides flexible and streamlined mechanism for dealing
with atypical employment.
•
Providing for Jobseekers Authorisations in HSOL area, i.e.
temporary permission to enter the State to attend an
interview & if successful, then allow EP application within
the State.
•
Pilot 10 day business visas.
Are Changes working?
•
Average waiting time down 51% on Jan. 2013
•
Average wait time now 18 working days (June 2014)
•
Average wait time steady despite 24% increase in volume so
far in 2014 (over same period 2013)
•
25% more EPs issued in the Information, Communications
& Technology Sector in first half of 2014 (877 compared to
702 in same period of 2013)
•
Over 90% of permits issued are new (i.e. “fresh blood” not
renewals)
Employment Permits (Amendment)
Bill 2014
EPs (Amendment) Bill 2014
 Passed all stages in Oireachtas on 16 July
 Due to be signed by President this week
 Act and associated Regulations will be commenced by mid-
September
 First Stakeholder Briefing 25 July
EPs (Amendment) Bill 2014
Bill extends and amends the EPs Acts of 2003 and 2006 to:
 provide flexibility to deal with changing labour market, work
patterns and economic development needs
 provide for a robust EPs regime which will provide clarity and
certainty to potential investors and employers, both indigenous
and multi-national, to better enable their business planning and
HR decision-making; and
 address recent deficiencies identified by the High Court in Younis
case (defence for employee, can take case for civil remedy)
Regulations
New Bill will be supported by a comprehensive set of
regulations which will include the following:


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
Names and fees for each EP category
Eligible and ineligible employments for each EP category
Minimum levels of Remuneration for each EP category
Documentary requirements for each EP category
Registration or accreditation requirements for relevant
employments
 Requirements of the Labour Market Needs Test
 Applications forms for each EP category
 Notification and review forms
Changes in EPs (Amendment) Bill 2014
 New Offence Provisions:
 Section 2 of Act of 2006 – expanded to include the Connected
Person and Foreign Employee in the requirement for an EP in an
Intra-Company Transfer scenario.
 Section 19 of Act of 2006 – expanded to include the Connected
Person and the Foreign Employee in the misuse an EP.
 Section 23 of Act of 2006 - expanded to include a prohibition for a
connected person from recovering any charge, fee or expense arising
out of the application or renewal of the EP.
 Section 24 of Act of 2006 - expanded to include the surrender of
the EP on the termination of the duties/training in an IntraCompany Transfer scenario.
 Section 27 of Act of 2006 - expanded to include the retention of
records by the connected person.
Changes in EPs (Amendment) Bill
 Policy Changes:
 Labour Market Needs Test - retains and extends the requirement
for a LMNT for all new applications, regardless of applicant, for
General and Contract for Services EPs, with certain grounds for
waiver including:





Where employment is one of the specified shortage occupations,
Where remuneration is €60,000 or over,
Where application has been recommended by an Enterprise Development
Agency,
In the case of a former permit holder who has been made redundant, and
Where General EP application is in respect of a Carer with a proven
history of caring for the sick person.
Changes in EPs (Amendment) Bill
 50:50 Rule – retains and extends the 50:50 rule to all applications,
both new and renewal regardless of applicant, with certain grounds
for waiver including:




for enterprise start-ups with enterprise agency support for a period of up
to two years in the case of a Critical Skills, General or Intra-company
Transfer EP. Two years start from date of registration as an employer
with Revenue,
Employer with a sole employee e.g. Carer in a Private Home, and
Renewals of EPs issued pre-enactment.
Can be satisfied by the Employer, the Connected Person (Intra-company
Transfer EP) and either the Contractor or the Relevant Person (Contract
for Services EP).
Changes to Highly Skilled and Ineligible Lists
• More explicit and based on the Standard Occupational
Classification System (SOC), which is used worldwide.
• Draws on data collated by the Expert Group on Future Skills
(EGFSN) and the Skills and Labour Market Research Unit of
SOLAS
• Biannual reviews of these lists to ensure that they are responsive
to emerging skills needs and changes in skills demand in the
economy.
Sample Format of new Lists
Old Highly Skilled List
All Sectors
Business and Financial Chartered and
Professionals and
Certified Accountants;
Associate Professionals Actuaries;
Management
Consultants; Business
Analysts; Compliance
Specialists; Risk
Analysts/Specialists;
Tax Experts; Legal
Experts and Credit
Specialists.
Old Ineligible List
 In the category 'Transport Staff':
All drivers including HGV
 In the category Childcare
Workers: Nursery / Crèche
Workers, Child Minder/ Nanny
New Highly Skilled List
Soc code 3
Employment
category
Soc code 4
Employment with
required skills
242
Business, Research
and Administrative
Professionals
2421
Chartered and
certified
accountants with
expertise in
taxation and
compliance
New Ineligible List
821
Transport
Drivers,
mobile
machine
Drivers
8211
8212
8213
8214
8215
Large goods vehicle
drivers
Van drivers
Bus and coach drivers
Taxi and cab drivers
and chauffeurs
Driving instructors
Changes in EPs (Amendment) Bill
 New Notification Obligations:
 Redundancy – Foreign National Holder of Green Card/Critical Skill
or Work Permit/General EP to notify Minister of dismissal by reason
of redundancy. The following will apply:





Prescribed form
Notification within 28 days of redundancy
Have a period of 6 months from date of dismissal to seek another job
offer.
Can apply for a new Critical Skill or General EP for the same employment
even though that employment may now be one of the ineligible categories
of employment.
LMNT waived in the case of a General EP.
Changes in EPs (Amendment) Bill
 New Notification Obligations:
 Transfer of Undertaking - Employer/Connected
Person/Contractor to notify Minister of change of name following
a TOU. The following will apply:



Prescribed form
Notification to be made by:
 Connected Person or Foreign Employer in the case of an Intra-company
Transfer EP
 Contractor in the case of a Contract for Services EP
 Employer in all other cases.
Permit to be re-issued in new name.
Changes in EPs (Amendment) Bill
 Submission of decision for Review in the case of a Refusal
of or a Decision to Revoke an EP. The following will
apply:



Must use Prescribed form
Form can be used for either a refusal under section 12 or a
decision to revoke under section 16
Review time extended to 28 days from 21 days in the case of a
refusal under section 12
Changes in EPs (Amendment) Bill
 Refunds and Payments
 Roll out of Payment of Fees by EFT for Business Users.
 EFT payment will be requested on receipt of a correctly
completed application.
 90% of fee refunded in the case of a refused or
withdrawn application before issue.
New Employment Permit Types
 9 types of EPs
 Critical Skills EPs
 Intra-Company Transfer EPs
 Dependant/Partner/Spousal (DPS) EPs
 General EPs
 Contract For Services EPs
 Reactivation EPs
 Internship EPs
 Sports and Cultural EPs
 Exchange Agreements EPs
Critical Skills Employment Permit
Critical Skills EP
 The Critical Skills EP is designed to attract highly skilled people into the labour
market with the aim of encouraging them to take up permanent residency in
the State.
 Eligible occupations under this type of permit are deemed to be critically
important to growing Ireland’s economy, are highly demanded and highly
skilled, and in significant shortage of supply in our labour market.
 Occupations such as ICT professionals, professional engineers and
technologists are catered for under this type of EP.
 Eligible occupations are largely determined in line with the regular analyses of
the Expert Group on Future Skills Needs with regard to the labour market
requirements in respect of strategically important skills.
Critical Skills EP
 Job Offer of 2 years or more duration.
 Must be for an occupation specified on the Highly Skilled Occupations List
with remuneration of €30,000 or over (based on a 39 hour week).
 All jobs with remuneration of €60,000 or over (based on a 39 hour week) other
then those which are not in the public interest or are listed on the Ineligible
Categories for an EP will be considered.
 A Degree qualification or higher is required in the €30,000 - €59,999 salary
range. Applications for Critical Skills EPs for €60,000 or over require a third
level degree or equivalent experience relevant to the job.
 Critical Skills EPs for salaries less than €30,000 will not be considered.
 The 50/50 rule will apply, however, this restriction may be waived in respect of
start-up companies.
Critical Skills EP
 Benefits of a Critical Skills EP
 No Labour Market Needs Test.
 Permit holder can apply for immediate family reunification from the Irish
Naturalisation and Immigration Services (INIS) of the Dept. of Justice and Equality.
 Dependants/Partners/Spouses who are resident with permission to remain in the
State as a Dependant/Partner/Spouse of a Critical Skills EP holder are eligible to seek
any employment (except in a domestic setting) and apply for a
Dependant/Partner/Spouse EP which is currently issued free of charge.
 Critical Skills Permit holder may apply to INIS for permission to reside and work
without the requirement for an EP upon completion of the Critical Skills/Green Card
EP duration.
Intra-Company Transfer
Employment Permit
Intra-Company Transfer EP
 The Intra-Company Transfer EP is designed to facilitate the transfer of
senior management, key personnel or foreign employees undergoing a
training programme , from an overseas branch of a multinational
corporation to its Irish Branch.
 Foreign nationals remain on an employment contract outside the State.
 There are three parties involved in an Intra-Company Transfer EP.
 Foreign Employer
 Connected Person (Irish Entity)
 Foreign Employee.
 The connection between the Connected Person (Irish Entity) and the
Foreign Employer is defined in the legislation.
Intra-Company Transfer EP
 The application is made by the Connected Person (Irish entity).
 Senior Management and Key Personnel must be earning a minimum
annual remuneration of €40,000 or more , and must be employed with
the foreign employer for at least 6 months before transfer.
 The foreign national undergoing training must be earning a minimum
of €30,000 or more, and must also have been employed with the
foreign employer for at least 6 months before the transfer.
 The 50/50 rule will apply to new and renewal applications . However
this rule may be waived in respect of Start-Up companies.
Intra-Company Transfer EP
 Intra –Company Transfer EP’s may be issued for an initial period
of up to 2 years and may be extended at renewal stage for a
further 3 years ( maximum period of stay is 5 years ).
 Training Permits may be considered for up to a maximum period
of 12 months and are non-renewable.
Dependant/Partner/Spouse
Employment Permit
Dependant/Partner/Spouse EP
 The objective of this type of EP is primarily to support
the attractiveness of Ireland as a location of
employment for potential and current Critical Skills
EP holders and Researchers (Hosting Agreement).
 Eligible dependant unmarried children, recognised
partners, civil partners and spouses (where recognised
as such by DJE), who have been admitted to the State
as family members of holders of Green Cards/Critical
Skills EPs and Researchers may apply.
Dependant/Partner/Spouse EP
 The scheme includes dependants over 18 who were already in the
State as part of the family unit prior to their 18th birthday.
 No Labour Market Needs Test required.
 The duration of the EP is linked to that of the Primary EP holder
/ Researcher.
 Remuneration may be less than €30,000 p.a. but cannot be less
than the hourly National Minimum Wage rate.
Dependant/Partner/Spouse EP
 May work for a minimum of 10 hours per week.
 No Fee.
 Being permitted to apply for permits in respect of all occupations
other than in a domestic setting with the exception of certain
carers.
 The 50/50 rule will apply.
Dependant/Partner/Spouse EP
 If a prospective employee is granted a Dependant/Partner/Spouse EP
for the first time in the State then he/she is expected to stay with the
initial employer for a period of 12 months (other than in exceptional
circumstances).
 If the first Dependant/Partner/Spouse EP in respect of the employer is
less than 12 months e.g. up to main permit holders’ permission to
remain from Department of Justice and Equality (DJE) then an
application for a renewal of their EP would need to be submitted.
 After the initial 12 months employee may change employer but a new
application for Dependant/Partner/Spouse EP would need to be
submitted.
General Employment Permit
General EP
 General EPs, which replace Work Permits, are considered
for all occupations (unless not in the public interest or
listed on the ineligible categories of employment for an
EP).
 The 50/50 rule will apply at application and renewal stage.
However, this restriction may be waived in respect of startup companies.
 Employee must have the qualifications and/or experience
for the job.
General EP
 General EP may be granted for a maximum period of 2
years in the first instance and may be renewed upon
application for a further 3 years.
 A Labour Market Test is required but there are waivers in
certain circumstances as outlined in previous slide.
 An annual remuneration of €30,000 applies.
General EP
 Consideration may be given on an exceptional basis with
remuneration lower than €30,000 in respect of the following:
 A Non-EEA Student who has graduated in the last 12 months from an
Irish third level institution and has been offered a graduate position
from the Highly Skills Occupations List.
 A Non-EEA Student who has graduated in the last 12 months from an
overseas third level institution and has been offered a graduate position
as an ICT professional from the Highly Skills Occupations List.
 Certain roles in Specialist, Technical or Sales Support with support
from the Enterprise Development Agencies.
Contract for Services Employment
Permit
Contract for Services EP
 This was previously catered for under the Work Permit Scheme but due
to the complexities involved they now fall under their own scheme.
 There are three parties involved in a Contract for Services EP:
 Foreign Contractor
 Relevant Person (Irish Entity)
 Foreign Employee.
 A Foreign undertaking (Contractor) who has won a contract to provide
services to the Irish Entity (Relevant Person) on a Contract for Services
Basis is eligible under the Scheme.
 The Department may issue a Contract for Services EP to facilitate the
transfer of non-EEA employees to work on the Irish contract in Ireland
and where they remain on an employment contract outside the State.
Contract for Services EP
 Permission to work for less than 90 days may fall under the
Atypical Working Scheme which is administered by the
Dept of Justice and Equality.
 The application for Contract for Services EP is made by the
Foreign Contractor .
 The employee in question must have been working for a
minimum period of six months with the overseas company
prior to the transfer and the duration of the transfer is for
at least 90 days.
Contract for Services EP
 The contract must be a one to one contract with the
Relevant Person (Irish entity ). Contract for Services EPs
will not be considered in instances where work is being
subcontracted to a third party.
 Permits can only be considered for the term of the contract.
 The foreign Contractor must be registered with the
Revenue Commissioners as an employer.
 The foreign Contractor must be registered with Companies
Registration Office/Registry of Friendly Societies, if
applicable.
Contract for Services EP
 The 50/50 rule will apply for new and renewal
applications and can be satisfied by either the
Contractor or the Relevant Person.
 Labour Market test is required, but there are waivers in
certain circumstances as outlined in previous slide.
Contract for Services EP
 The details of the contract must be provided on the
application form.
 Contract for Services EPs may be issued for an initial
period for up to 2 years and may be extended at renewal
stage for a further 3 years (Maximum stay of 5 years).
 The permits validity will not exceed the expiry date of the
contract.
Reactivation Employment Permit
Reactivation EP
 These are to enable a foreign national who entered the State
on a valid EP but who fell out of the system through no fault
of their own or who has been badly treated or exploited in the
workplace, to work again.
 The employee must have previously held an EP.
 The employee must hold a temporary Stamp 1 and have a
“Reactivation EP” Letter from the Department of Justice and
Equality.
 Remuneration must be the National Minimum Wage or
higher.
Reactivation EP
 Applies to all occupations except occupations in a
domestic setting other than certain carers.
 The employee must possess the relevant qualifications,
skills or experience required for the employment.
 Labour Market Needs Test is not required.
 The 50/50 rule will apply at application and renewal
stage.
Reactivation EP
 Reactivation EPs may be granted for a maximum
period of up to 2 years in the first instance and may be
renewed upon application for a further 3 years.
Internship Employment Permit
Internship EP
 Internship EPs are to facilitate the employment in the State of
foreign nationals who are full-time students (including Post
Grad Students) enrolled in a third level institution outside the
State and pursuing a Degree course or higher.
 For the purpose of gaining work experience.
 Must have a job offer from an employer in Ireland.
 Labour Market Needs Test not required.
 Remuneration must be the National Minimum Wage or higher.
Internship EP
 Must be one of the employments listed on the Highly Skills
Occupation list.
 The course of study must be wholly concerned with the
skills shortages identified on the Highly Skills Occupation
List.
 It is a requirement for the completion of their course of
study.
 At the end of the internship the employee must leave the
State and return to the third level institution to complete
the course.
Internship EP
 The 50/50 rule will apply.
 Internship EPs are only issued for a maximum period
of 12 months and are non-renewable.
Sport and Cultural Employment
Permit
Sport and Cultural EP
 The Sport and Cultural EP is designed to facilitate the employment in
the State of foreign nationals for the development, operation and
capacity of sporting and cultural activities.
 Employee must have the relevant qualifications, skills, knowledge or
experience.
 The EP section may consult with governing bodies and a supporting
letter from them can be supplied at application stage.
 All occupations apply other than those listed on the ineligible
categories of employment for an EP.
 Remuneration must be the annual National Minimum Wage or higher.
Sport and Cultural EP
 The 50/50 rule will apply at application and renewal stage. However,
this restriction may be waived in the case of Clubs with only one
employee.
 Labour Market Needs Test is not required.
 Sports and Cultural EPs can be issued seasonally or for up to 2 years
depending on the contract.
 Renewal application may be considered for a period up to 3 years.
 Permits issued for seasonal employment are non-renewable.
Exchange Agreement Employment
Permit
Exchange Agreement EP
 This permit replaces the old Exchange Agreement class of
Work Permit EP and will cater for EPs for international
reciprocal agreements.
 Exchange agreement EPs are designed to facilitate the
employment in the State of foreign nationals pursuant to
prescribed agreements to which the State is a party. An
example for instance would be the Fullbright Programme
for Researchers and Academics.
 Eligible Exchanges will be prescribed in the regulations.
Exchange Agreement EP
 Employee must be employed, salaried and paid
directly by the employer in the State.
 Be in receipt of National Minimum Wage or higher.
 The 50/50 rule will apply.
 Labour Market Needs Test is not required.
Exchange Agreement EP
 Applications can only be accepted which fall under the
prescribed exchange agreements.
 Can only be considered if the exchange or international
agreement applies to the foreign national concerned and
the application is supported by a letter from the exchange
organisation.
 There is no processing fee for an Exchange Agreement EP.
 Exchange Agreement EPs can only be issued for a
maximum of 12 months and are non-renewable.
Remuneration Requirements for the
purposes of an Employment Permit
Remuneration Requirements for the
purposes of an EP
Future Improvements
ICT Action Plan 2014 and EPs
•
Strategic Priority 3: “Increase efficiency of the EP system
to facilitate access to high level ICT skills from overseas”
•
Minister happy to see permits issued in ICT sector reach
2,000 EPs p.a. (from 1,450 in 2013) (first half of 2014 = 877)
Trusted Partner
•
What is a Trusted Partner?
 New Form of Registration available to certain
Employers to streamline the EP application process.
 Pilot Scheme to be introduced Q4 2014
 Minister has approved the Scheme for roll-out once
post-enactment changes have bedded down
Trusted Partner – Main Benefits
• Fast turnaround of Trusted Partner applications
• Status valid for 2 years
• No fee
• Reduced paperwork for every EP application applied
for under scheme
• Faster turnaround of Trusted Partner EP applications
eform
 Current eForm for existing permits system was introduced
in Oct 2013
 32% take-up so far
 Target 50% by year end
 Applications on eForms less likely to be rejected at triage
stage (20% vs. 37% on paper form)
 Next Steps: eForm for new permit schemes
Other Actions from ICT Skills Action
Plan 2014
• Introduction of Awareness-raising e-Brochure (post-
enactment)
• Stand at Web Summit 2014
• E-payments from Sept 2014
Any queries or questions in relation
to the new legislation can be
directed to [email protected]

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