Dáil Éireann debate -
Tuesday, 11 Dec 2001

Vol. 546 No. 3

Written Answers. - PRSI Payments.

Paul McGrath

Question:

70 Mr. McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment if tutors employed by FÁS have had inappropriate PRSI contributions paid for them by the organisation; if up to 2000 tutors were so disadvantaged; if a decision was made within this organisation to classify these tutors as senior trainees; the reason for this decision; if additional payments must be made by this organisation to the social welfare fund; if a Supplementary Estimate will be required to enable FÁS make this payment; if this is a serious breach of employment laws; and if she will make a statement on the matter. [31713/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

A decision was made by AnCO, the predecessor to FÁS, to classify some ordinary trainees as senior trainees. This was because, as well as updating their own skills, these persons also passed on some of their skills – previously acquired in employment – to ordinary trainees. This was highly beneficial and was supported by the European Union. Typically, such persons were employed by community groups on community training programmes such as the restoration of old historic buildings where special skills were required. However, they were not employed as tutors. They were course participants. Accordingly, they were insured under Class J PRSI – occupational injuries only – as with all FÁS trainees.

Discussions took place in 2000 between FÁS and the Department of Social, Community and Family Affairs to clarify the social insurance status of these senior trainees in the light of rulings by the Department that they should be insurable under class A PRSI.

FÁS accepted this ruling but was not in a position to implement this decision because effec tively it would result in such persons being regarded as employees of FÁS. Accordingly, it was decided that the appropriate community group would employ all new senior trainees on community training projects from 4 December 2000, as is the case with the foreman or supervisor on such projects. The senior trainees would then be employees of the community group and would be insured under class A PRSI.

The above solution resolved the issue with the Department of Social, Community and Family Affairs and also had the very beneficial effect for FÁS that persons formerly classified as trainees would now be employees in the workforce with all the associated benefits accruing.

The Department of Social, Community and Family Affairs also raised the matter of correcting all records for previous senior trainees so that no person would be disadvantaged. FÁS has provided the necessary information to the Department of Social, Community and Family Affairs to enable this to be done. The question of liability for arrears of PRSI contributions is also being addressed between FÁS and the Department but it is not possible at this stage, pending clarification of the periods involved in each case, to say what the extent of any such liability to FÁS might be.

Finally FÁS has indicated that it has paid the correct PRSI contribution for its circa 600 tutors who are employed under a contract of service by the organisation, i.e. they are FÁS employees.