Dáil Éireann Debate, Wednesday - 20 July 2016
51. Deputy Mick Barry asked the Minister for Jobs, Enterprise and Innovation her views on the actions of a company (details supplied) which has replaced its directly employed staff with staff whose contracts deem them to be nominally self-employed and paid by delivery with the result that their hourly earnings are on average less than the minimum wage. [22791/16]
View answerI have forwarded the details supplied by the Deputy to the Workplace Relations Commission for examination and action if appropriate.
Irish employment rights law makes a distinction between a contract of service, which applies to an employer-employee relationship, and a contract for service, which applies in the case of a self-employed person. In effect, employment rights legislation does not apply to independent sub-contractors with the exception of the Safety, Health and Welfare at Work Act, 1989 and the Equality Act, 1998.
Ireland has a well-resourced and proactive labour inspectorate, which now forms part of the Workplace Relations Commission (WRC) and there are already existing mechanisms in place to tackle this issue. Inspections are undertaken on the basis of risk analysis which identifies certain sectors, as a result of complaints received and on a routine basis. Where the WRC inspection service receive complaints in relation to bogus self-employment or bogus sub-contracting, they are forwarded to the Revenue Commissioners and/or the Department of Social Protection (Scope Section) for investigation either solely by the recipient, or jointly with the Workplace Relations Commission.
In most cases it will be clear whether an individual is employed or self-employed. Where there is doubt in relation to the employment status of an individual the relevant Departments and Agencies will have regard to the Code of Practice for Determining Employment or Self-Employment Status of Individuals. This Code was drawn up and agreed in 2007 by the Office of the Revenue Commissioners, Department of Social and Family Affairs, Department of Enterprise, Trade and Employment, the Irish Congress of Trade Unions and the Irish Business and Employers Federation.
The Deputy will be aware that the Department of Finance and Department of Social Protection have conducted a joint public consultation on the Use of Intermediary-Type Structures and Self-Employment Arrangements.
Clearly there is a convergence of interests between my Department and the Departments of Finance and Social Protection in addressing this issue. Apart from the significant losses to the Exchequer arising from cases of so called bogus self-employment, the practice has serious implications from an employment rights perspective. In this respect it is important that individuals are correctly designated as regards employment status, so that those who ought to be designated as employees are not deprived of employment rights. This is particularly the case for vulnerable workers who may not feel in a position to object to certain arrangements.
