Bernard Allen (Cork North Central, Fine Gael)
Link to this: Individually | In context

Question 119: To ask the Minister for Social and Family Affairs the cooperation between social welfare inspectors and other agencies in relation to employers found in breach of employment laws; and if he will make a statement on the matter. [12109/08]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

The Department's inspectorate, appointed under Section 250 of the Social Welfare (Consolidation) Act 2005 is responsible for ensuring that employers comply with their legal obligations in relation to Pay Related Social Insurance contributions. Employer compliance in this regard, is monitored by Inspectors conducting employer inspections. The nature of these inspections can vary; ranging from the straightforward, where compliance is fully in order, to the more complex where evidence of non compliance is obtained and an in-depth inspection is required. Over 4800 employer inspections were carried out in 2007.

Joint Inspection Units (JIU) comprising of personnel from both the Department of Social and Family Affairs (DSFA) and Revenue Inspectorates have been in operation for many years. These units were established countrywide, to combat Social Welfare Fraud and tax evasion i.e. to uncover instances of non compliance by employers with the PAYE/PRSI regulations and abuse of DSFA schemes.

A Service Level agreement between this Department and the Office of the Revenue Commissioners defines the administrative and operational arrangements under which these Units operate.

This joint cooperation, drawing as it does, on the expertise and experience of those involved in planning and conducting joint projects, has been beneficial in the detection of non compliance by errant employers and in the collection of any outstanding PRSI liabilities arising. In addition, the use of both DSFA and Revenue legislation has been most effective in this regard.

Legislation was introduced in the Social Welfare Miscellaneous Provisions Act 2004, to enable Social Welfare Inspectors verify that employers had entered into a contract with a Personal Retirement Savings Account (PRSA) provider in cases where the employer does not operate a pension scheme with retirement benefits for employees. Where in the course of employer inspection work, Social Welfare inspectors uncover evidence of non-compliance by employers in this regard, the Pensions Board is notified accordingly. Once notified the onus is on the Pensions Board to follow up and ensure compliance. Almost 1,500 PRSA enquiries were carried out in 2007, of which over 440 were referred to the Pensions Board.

In June 2006, arrangements were put in place between my Department and the Department of Enterprise Trade & Employment (DET&E) on the transfer of information regarding work permits. As part of this process, my inspectors notify DET&E of cases of suspected non compliance with Work Permit legislation which they identify in the course of their normal inspection work.

Toward 2016 provides for greater coordination between agencies in the area of employment law and employment rights, with a view to ensuring compliance in this area. The Social Welfare and Pensions Act 2007, includes a provision to enable the Department, the Revenue Commissioners and the National Employment Rights Authority (NERA) to exchange relevant information and undertake joint investigations. There have been ongoing exchanges of information between the three agencies and a number of joint investigations have already taken place. Inter agency co-operation of this nature can be particularly effective and the Department is committed to maintaining close working relationships with both the Revenue Commissioners and the National Employment Rights Authority (NERA).