Oireachtas Joint and Select Committees

Thursday, 14 February 2019

Joint Oireachtas Committee on Social Protection

Bogus Self-Employment: Discussion (Resumed)

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

There is a slight problem with the issue of who the employer is and the obligations that employer has to the employee, and sectoral concerns. I am not saying it should not be a part of the mix, but I believe that it is in the interests of the public, especially where public money is used, that the public gets the maximum amount back for its investment, whether via film tax relief or public funding. Even in the private sector it is important to get the maximum tax revenue possible from employment. People should not be allowed to miscategorise themselves. There is a problem with employers trying to miscategorise people, but people can also miscategorise themselves in order to gain a tax benefit. That is problematic, and should be addressed by providing fairly objective criteria for defining employees. Someone cannot just decide that he or she fancies being an entrepreneur when that is not the case. By declaring oneself an entrepreneur one effectively undercuts somebody who wants PAYE direct employment doing exactly the same job. I believe that approach is prevalent in a number of sectors, particularly where younger people are engaged who do not worry about pension contributions and all of that stuff and are happy to freelance. They may regret taking that approach in 20 years' time. In the meantime, they are undercutting people who have worked in an industry for years and have been fighting for pension entitlements and that kind of thing. Does Professor Doherty understand my point?

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