Employers will face fines of up to €250,000 for breaches of labour law, including abuses of migrant workers, under plans from the Minister for Enterprise, Trade and Employment, Micheál Martin, cleared by the Cabinet yesterday.
A draft of the proposal, which was high on the unions' list of demands in the Towards 2016 social partnership talks, is to be circulated to employers and trade unions for their consideration before the legislation is written later in the year.
A new employment rights authority, which will still operate as part of the Department of Employment, will be created on a statutory basis, employing 90 labour inspectors by Christmas - up from 65 today.
In 2005, the disclosure that the State employed 21 labour inspectors after it emerged that large numbers of Turkish builders working in Ireland were paid less than the minimum wage by their Turkish employers, Gama, caused a major row.
Former taxi regulator Ger Deering has been appointed to the Office of the Director for Employment Rights Compliance, which will be called the National Employment Rights Authority, once the legislation is passed.
On summary conviction, offenders will face the threat of fines up to €5,000 in the District Court and/or a custodial sentence, while the penalties can jump to €250,000 if convicted for offences such as hiring children.