A contractor working on a major Irish construction project faces prosecution by the National Employment Rights Authority (Nera), a newspaper report has claimed.

According to the Irish Times, the prosecution is due within the next few months.

The job is reportedly a major State-funded construction job.

However, due to legal reasons the name of the firm, or the exact job it has been contracted for cannot be disclosed.

It is thought, however, that the prosecution is linked to employment records kept for staff and the case follows a complaint by another firm.

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Nera Director Ger Deering said this year has seen a large increase in the number of employers coming forward to report other firms for not complying with employment laws.

"If a contractor comes in and illegally cuts the rates they can actually undercut a legitimate contractor by millions because the labour cost of a major project is the biggest cost," said Mr Deering.

"What you end up with then is a legitimate contractor with no work and their employees with no work.

"Records are key because if for example an employer doesn’t record the rate per hour somebody is getting, if they don’t record the number of hours someone works, we don’t know whether or not they are compliant."

Nera was established almost three years ago, and any such prosecution brought against the unnamed company would represent the first taken by the body.

(NS/GK)