Niall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

64. To ask the Minister for Jobs, Enterprise and Innovation if her attention has been drawn the practice of bogus self-employment in the construction industry; the full extent of the practice in the industry; the steps she will take to end the practice; and if she will make a statement on the matter. [34979/17]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am aware of concerns regarding the issue of bogus self employment in the construction industry. Apart from significant losses to the Exchequer that can arise from cases of so-called bogus self-employment, the practice has serious implications from an employment rights perspective. In this respect, it is important that individuals are correctly designated regarding their employment status so that those who ought to be designated as employees are not deprived of their employment rights. This is particularly the case for vulnerable workers who may not feel in a position to object to certain arrangements. 

Ireland has a well-resourced labour inspectorate, which forms part of the Workplace Relations Commission (WRC) and there are existing mechanisms in place to determine the employment status of individuals or groups. 

WRC Inspections are undertaken on the basis of risk analysis which identifies certain sectors, as a result of complaints received and on a routine basis. Where the WRC inspection service discover or issues are raised in relation to bogus self-employment or bogus sub-contracting, they are forwarded to the Revenue Commissioners and/or the Department of Social Protection (Scope Section) for investigation either solely by the recipient, or jointly with the Workplace Relations Commission. 

In most cases it will be clear whether an individual is employed or self-employed. Where there is doubt in relation to the employment status of an individual the relevant Departments and Agencies will have regard to the Code of Practice for Determining Employment or Self-Employment Status of Individuals. This Code was drawn up and agreed in 2007 by the relevant Government Departments with ICTU and IBEC.

Where an individual believes they are being deprived of employment rights applicable to employees they may refer a complaint to the WRC where the matter can be dealt with by way of mediation or adjudication leading to a decision that is enforceable through the District Court. Complaints can be made on a single complaint form available at the WRC’s website www.workplacerelations.ie.

The WRC’s Customer Service Section, which  provides information to both employers and employees in relation to employment and industrial relations rights and obligations, can be contacted at Lo-call: 1890 80 80 90 or 059-9178990.

An interdepartmental working group, comprising officials from the Department of Social Protection, the Department of Finance and the Revenue Commissioners, has been examining the emergence of new forms of employment arrangements, which are sometimes called ‘disguised employment’. These includes arrangements i) where an individual, who would otherwise be an employee, establishes a company to provide their services employment and ii) where an individual, who is dependent on and under the control of a single employer in the same manner as an employee, is classified as self-employed.

The working group sought the views of interested parties and stakeholders through a public consultation. The consultation received 23 submissions from interested parties, including employers, trade unions, professional bodies and individuals. The working group is preparing a report which will present the views of these organisations and individuals, together with an analysis of the issues arising. I understand that the working group is currently finalising the report.