Dáil Éireann Debate, Thursday - 15 November 2018
207. Deputy Róisín Shortall asked the Minister for Employment Affairs and Social Protection the number of prosecutions she has sought against employers that have been found to have been employing workers on bogus self-employment contracts in each of the past five years; the number of cases that were successfully prosecuted each year; and if she will make a statement on the matter. [47573/18]
View answerMy Department’s Scope Section makes in excess of 1,000 employment status determinations each year covering a range of issues including directors of companies, family employments, partnerships and public sector employments.
The number of cases involving a direct conflict of employment or self-employment status is relatively small.
In 2017, Scope Section made 138 decisions resulting in a class A employment decision. Of these, 35 could be described as disputed employment/self-employment cases.
In the current year, they have made 113 decisions resulting in a class A employment decision, of which 27 could be described as disputed employment/self-employment cases.
In instances of dispute as to the correct employment status, Scope Section records the determination made but does not designate cases as “bogus self-employed” as it is not correct to describe all cases in which a person is deemed to be an employee - rather than self-employed - as “bogus self-employment”.
Following a Scope decision, the employer will be liable for class A PRSI for the full period of employment. This can be a significant penalty for a business. Most employers co-operate fully with the Department’s inspectors in insuring compliance following a Scope decision. Where they fail to comply then additional measures, including prosecution, can be brought to bear.
The Department considers for prosecution all persons who defraud the social welfare system and employers who fail to carry out statutory obligations under the Social Welfare Acts.
Cases referred to the Department's Central Prosecution Service (CPS) for consideration of prosecution are examined using the principles established by the Director of Public Prosecutions. If the CPS is satisfied that a prosecution should be pursued, a brief is prepared and submitted for authorisation to prosecute and it will be referred to the Chief State Solicitor’s Office for distribution to a State Solicitor. A prosecution may not be considered necessary if the issue has been resolved successfully.
From 2014 to date, prosecution proceedings have been taken in 21 cases where an employer failed to comply with statutory obligations. The offences related to employers who have failed to remit PRSI, to provide records, to produce records, or failed to maintain records.
Eighteen cases of this nature were finalised in the same period. A further 12 cases are under the examination in my Department for consideration of prosecution. A breakdown is provided in table I below.
An employer/employee may also be prosecuted if they are found to obstruct a Social Welfare Inspector in the course of their duties. Seven cases of this nature were prosecuted between 2014 to date and 7 were finalised in the same period. A breakdown is provided in table II below
Statistics regarding employer/employee prosecutions are collated on the basis of the alleged offence and not on the specifics of the cases. Therefore, there are no records held on the number of prosecutions that may relate to bogus self- employment.
I hope this clarifies the matter for the Deputy.
Table I
|
2014 |
2015 |
2016 |
2017 |
End Oct 2018 |
|
|
IN9 – Failure to remit PRSI |
5 |
3 |
1 |
0 |
0 |
|
IN28 - Failure to provide records |
1 |
2 |
1 |
0 |
0 |
|
IN 32 Failure to produce records |
4 |
2 |
0 |
0 |
0 |
|
Failure to maintain records |
1 |
1 |
0 |
0 |
0 |
|
Total |
11 |
8 |
2 |
0 |
0 |
|
Cases Finalised |
4 |
6 |
4 |
2 |
2 |
Table II
|
2014 |
2015 |
2016 |
2017 |
End October 2018 |
|
|
Employer Obstruction |
1 |
2 |
0 |
1 |
0 |
|
Employee Obstruction |
0 |
0 |
2 |
0 |
1 |
|
Total |
1 |
2 |
2 |
1 |
1 |
|
Obstruction cases finalised |
0 |
2 |
2 |
1 |
2 |
