Joint Committee on Social Protection, Community and Rural Development and the Islands publishes ‘Bogus Self-Employment’ report

The Joint Committee makes a total of 13 recommendations in the report to improve the situation for workers who have been wrongly classified as self-employed by their employer. Committee Cathaoirleach Denis Naughten TD said: “Bogus self-employment, as the Joint Committee understands it, refers to situations when an employer deliberately misclassifies a worker as self-employed to avoid their employer obligations under both the tax regime and employment law. This can have long-term effects on those workers’ contributions records. Workers who are misclassified as self-employed rather than as employees can experience difficulties accessing certain social protections due to the lack of PRSI contributions paid on their behalf by their employer.”  

The Joint Committee’s recommendations include:

·       The establishment of a dedicated and appropriately resourced employment status unit in the Workplace Relations Commission to examine and provide determinations on employment status cases, regardless of whether they relate to social insurance, employment rights or tax obligations. ·       An increase in the period employers must pay backdated PRSI contributions that they previously avoided from six months to six years.

·       The updating of the Code of Practice for determining the employment or self-employment status of individuals and placement of the code on a statutory footing by the end of this year. ·       That the Department of Social Protection runs an advertisement campaign informing the public that they can apply to have their employment status redetermined in certain circumstances. ·      

The development of a framework for collecting data on areas of employment where there is a potential or known risk of bogus self-employment in the medium to long-term.

·       Applications for classification of employment status to receive a decision within six months. ·       That standard definitions of the words ‘employee’ and ‘worker’ are developed and applied to all pieces of employment legislation.    

Deputy Naughten added: “The Joint Committee is committed to ensuring the recommendations in the report are implemented to create positive change for those effected by the practice of bogus self-employment.“   The Cathaoirleach of the Committee thanked witnesses and stakeholders who provided information for the report through oral hearings or written submissions. He thanked Deputy Joan Collins TD who acted as rapporteur on the report “for her hard work and dedication to the topic.”   Deputy Naughten said the Committee will will continue to engage with both the Minister for Social Protection and the Department of Social Protection on the issue and seek regular updates on the implementation of the recommendations set out in the report.   The Joint Committee will also welcome and consider further submissions from interested parties following the publication of the report.   Learn more about the work of the Joint Committee on Social Protection, Community and Rural Development and the Islands. (Link to Committee page) Read the report and its recommendations in full. (link to full page)   Media enquiries Petrina Vousden Press Officer Houses of the Oireachtas Landline: 01-6183437 Mobile: 085 8745295   Note to editors: During the course of the 32nd Dáil and 25th Seanad the then Joint Committee on Employment Affairs and Social Protection met seven times with a number of stakeholders to examine the issue of bogus self-employment. Due to the level of work undertaken during this time, and the importance of the topic, the Joint Committee on Social Protection, Community and Rural Development and the Islands determined that it was important to complete that work using the information provided to the former Joint Committee on Employment Affairs and Social Protection and additional information provided to the current Committee.