Regina Doherty (Meath East, Fine Gael) | Oireachtas source

Deputy Brady is aware that this is a particular bugbear of mine. Bogus self-employment arises when an employer wrongly treats a worker as an independent contractor in order to avoid paying tax and social insurance contributions. There are no official data on the extent of bogus self-employment but I wish there was. It is not clear whether the problem is growing but, anecdotally, we are all aware that the norms within working environments are changing.

The recent data from the quarterly national household survey records 312,000 individuals as self-employed in 2017, which accounts for 15% of the overall number of people in employment. The survey does not show any significant increase in the numbers claiming to be self-employed, nor does it show any significant disparity between Ireland and other European countries. It is a case that we all have a problem and that we have had it for a long time and have just not addressed it. I hope the House collectively wants to fix that.

Social welfare inspectors inspect a wide range of businesses as part of the ongoing compliance operations. Inspections are conducted jointly between the Revenue Commissioners and the Workplace Relations Commission. Where evidence of non-compliance is detected, the matter is pursued. Officials also investigate specific claims brought to the Department's attention by either individuals or organisations. The relevant section in the Department is the scope insurability section. The section determines the employment status of individuals at their request or on the request of a company. Where a misclassification of a worker as self-employed is detected, the correct status and class are determined and social insurance arrears are collected. Under the Social Welfare Consolidation Act, there are specific offences concerning employment contributions. On conviction, fines and-or imprisonment can ultimately imposed.

Additional information not given on the floor of the House

Any worker who has concerns about his or her employment and PRSI status should contact my Department and the matter will be investigated.

The classification of a worker for PRSI purposes is increasingly complicated by what is termed "disguised employment". The latter involves intermediary employment structures and certain self-employment arrangements. My Department is concerned that such mechanisms are being used to reduce the amount of PRSI and tax being paid, with a subsequent loss to the Exchequer and the Social Insurance Fund. An interdepartmental working group, comprising officials from my Department, the Department of Finance and the Revenue Commissioners has completed a report on this issue. The Minister for Finance and I are considering the report with a view to its publication in the near future.

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