Brian Stanley
Ceist:75. Deputy Brian Stanley asked the Minister for Social Protection her plans to address the practice of bogus self-employment; and if she will make a statement on the matter. [25945/21]
Amharc ar fhreagraTuesday, 18 May 2021
Ceisteanna (75)
Freagraí scríofa
To begin with, it is important to note that self-employment is a perfectly legitimate and vital feature of the Irish economy with over 330,000 people employed this way. It is also the case that there is no compelling evidence that false self-employment is widespread, as some might suggest.
That said, false self-employment does exist and, as such, is a matter that I and the Department take very seriously. I do not want to see a situation where any workers are denied their social insurance entitlements or where much-needed funds are denied to the depleted Social Insurance Fund.
The deliberate misclassification of a worker as a self-employed contractor for PRSI purposes is wrong. The Social Welfare Consolidation Act contains specific offences in relation to the return of employment contributions which, on conviction, can result in fines and/or imprisonment.
Unfortunately, there is no ‘silver bullet’ solution that would completely eradicate false self-employment. The best way to tackle it is through inspection, compliance and deterrence. The Department has significantly increased its employer inspections in recent years through its network of 380 Social Welfare Inspectors nationwide. It also established the Employment Status Inspection Unit (ESIU) in mid-2019, comprising six Inspectors focused solely on detecting false self-employment.
This Unit has already carried out hundreds of employment status investigations in a wide range of sectors, including construction, meat processing, fitness, language training and media sectors. As the economy opens up, control activities in the construction sector, as well as hairdressing and personal services, are being increased.
False self-employment does not always involve a deliberate or fraudulent misclassification of an employee. Sometimes it happens that both employer and employee are genuinely mistaken in their approach and are happy to correct the position once the Department’s officials make a determination.
Therefore, I believe it is vital that employers and workers have clear information and guidance when looking at employment status. That is why I put great value on the Code of Practice on Determining Employment Status . We have recently updated the Code to reflect the modern world of work, and to reflect the legislation and case law that has emerged from various court cases over the years.
I intend to publish the revised Code shortly and would encourage all affected stakeholders to make sure they are familiar with its content.
Question No. 76 answered orally.