Paul Murphy (Dublin South West, Socialist Party)
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19. To ask the Minister for Jobs, Enterprise and Innovation the steps he will take to end the practice of some employers using subcontracting to lower the cost of labour; and if he will make a statement on the matter. [48143/14]

Richard Bruton (Dublin North Central, Fine Gael)
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Ireland’s robust suite of employment rights legislation is underpinned by a proactive labour inspectorate. The National Employment Rights Authority (NERA) has a team of inspectors, and in 2013 NERA carried out over 5,500 inspections. Where NERA encounter the sub-contractor model, the question may arise as to whether individuals are employees or self-employed. NERA Inspectors are not in a position to make a final determination regarding employment status. Rather, this is a matter for both the Department of Social Protection (DSP) and the Revenue Commissioners. Where NERA inspectors encounter situations in which there is a question over the employment status of an individual, they refer the matter to the relevant authority. Where either the Department of Social Protection or the Revenue Commissioners makes a determination on these issues NERA, in accordance with the Code of Practice for Determining Employment or Self-Employment Status of Individuals will generally accept their decisions on the issue. Finally, the matter can also be determined by the courts.

NERA has statutory authority to share information with the Revenue Commissioners and the Department of Social Protection. In addition, NERA is a member of the Hidden Economy Monitoring Group, a non-statutory multi-agency group comprising of representatives from business groups, trade unions and State agencies, including the Department of Social Protection and the Revenue Commissioners, who have a common commitment to tackle the shadow economy. Publicly funded construction projects are subject to ongoing supervision and inspection by the enforcement agencies of the State (i.e. Revenue, DSP and NERA - acting as Joint Inspection Units).

Workers who consider they are not receiving the National Minimum Wage can make a complaint to NERA, or a Rights Commissioner. Complaints in relation to non-payment of wages, or a deficiency in the wage rate can also be made to a Rights Commissioner. The proposed Industrial Relations (Amendment) Bill will provide for a new statutory framework to replace the former sectoral Registered Employment Agreement (REA) system. The new framework will enable the establishment of minimum rates of remuneration and other terms and conditions of employment in specific sectors, including the construction sector. The Heads of the proposed Bill provide for a definition of “worker” based on section 23 of the Industrial Relations Act 1990. In this context, it is proposed that the term “worker” will include a person who has entered into or works under a contract with an employer to personally execute any work or labour. The High Court has interpreted the term “worker” in section 23 as including a subcontractor providing services personally under a contract for service. In addition, the Labour Court had found in a number of cases that self-employed subcontractors in the construction sector were covered by the terms of the REAs for the Construction Industry.