The European Commission is investigating Ireland for the "unjustified way" it carries out prior checks on professionals wishing to work here on a temporary basis.
The commission has opened an infringement procedure by sending a letter of formal notice to Ireland and 21 other EU countries for failing to comply with the EU Professional Qualifications rules.
The rules make it easier for professionals to provide their services on a temporary and occasional basis in different member states.
However, countries can check qualifications before allowing the provision of services for professions which have public health and safety implications. The commission said these checks can significantly delay the start of the activities and should only be imposed under strict conditions.
"In particular when a lack of professional qualifications could lead to serious damage to the health or safety of the service recipient," the commission said.
However, the commission says that the 22 member states require prior checks in an unjustified way for several professions that do not satisfy the conditions under which such checks are allowed.
It has focused this enforcement action on three areas of particular importance; construction, transport and business services.
Ireland and the 21 other countries now have two months to respond and address the shortcomings raised by the commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.
If the country still doesn't comply, the commission may decide to refer the matter to the Court of Justice which could issue fines for non compliance.