The European Commission has raised concern over the legality of the Government's decision to refuse social welfare benefits to migrant workers.
A two-year habitual residence condition was introduced for social welfare assistance last year, in response to Government fears the accession of 10 new members to the EU could lead to a significant number of citizens coming here to draw welfare payments.
Officials from the European Commission have sent a "notice of infringement" to the Government over the extent to which benefits are being denied to EU citizens, The Irish Times has learned.
The Department of Social and Family Affairs yesterday confirmed it was in discussion with commission officials to clarify and address issues raised.
A spokeswoman for Minister for Social and Family Affairs Seamus Brennan said it was expected these discussions will be "concluded to the satisfaction of both parties by the end of this year".
While the Minister told the Dáil earlier this year he was not aware of hardship caused by the refusal of social assistance, homeless and immigrant support groups say there is increasing evidence of immigrants being put at risk of poverty and homelessness.
The Homeless Agency, a partnership body which includes representatives of voluntary and statutory service providers, is also conducting a study into the effects of the welfare restriction.
A number of groups representing migrant workers are due to meet with Mr Brennan next month, when they will discuss their growing concern over the impact of social welfare restrictions.
Voluntary groups say they are receiving requests for emergency support and assistance from migrant workers on a daily basis, while there are cases of non-nationals sleeping rough and in cars in recent months.
Siobhán O'Donoghue, of the Migrant Rights Centre, said changes were needed to ensure there was a safety net for the small number of people who find themselves without work.
"We're getting cases every week and they're just the tip of the iceberg.
"The kind of people affected by this provision are those who come here to work but end up unemployed through injury, illness or exploitation," she said.
"The consequences and impact of the restriction were not foreseen at the time it was introduced and are causing serious problems for migrant workers."
Just yesterday, said Ms O'Donoghue, the centre had to provide assistance to a 24-year-old Lithuanian who had arrived in Ireland to work, but had his passport and money stolen.
Philip Watt, of the National Consultative Committee on Racism and Interculturalism, said figures showed little evidence of migrants travelling here to access social welfare support.
"Between May 2004 and April 2005, 85,000 people have come here from accession states.
"Figures show there have been over 3,000 applications for social assistance, which amount to 3.5 per cent," he said.