Written answers

Tuesday, 18 September 2018

Department of Employment Affairs and Social Protection

Employment Data

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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725. To ask the Minister for Employment Affairs and Social Protection the estimated number of workers here that are categorised as being in bogus self-employment in 2017 and to date in 2018; and if she will make a statement on the matter. [37180/18]

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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727. To ask the Minister for Employment Affairs and Social Protection the number of inspections carried out by social welfare inspectors relating to bogus self-employment in 2017 and to date in 2018; the number of incidents of bogus self-employment uncovered by these inspections in 2017 and to date in 2018; the action that followed these inspections; and if she will make a statement on the matter. [37186/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 725 and 727 together.

There are arrangements in place for dealing with complaints of bogus or false self-employment. Social welfare inspectors inspect a wide range of businesses, as part of their on-going compliance operations. Inspections are also undertaken jointly with other agencies including the Revenue Commissioners and Workplace Relations Commission.

In 2017 social welfare inspectors carried out 979 employer inspections. In 2018, 1,273 employer inspections have been completed as of 9 September.

With respect to the question of the number of inspections, which specifically related to false self-employment and the number of workers that are categorised as being in false self-employment, I regret that the Department does not collate statistics to report on this matter.

My Department’s Scope section determines employment status and the correct class of pay-related social insurance (PRSI). Where misclassification of workers as self-employed is detected, the correct status and class is determined and social insurance arrears are collected as required. Under the Social Welfare Consolidation Act, there are specific offences in relation to the incorrect classification of employment contributions. On conviction, fines and/or imprisonment can ultimately be imposed.

In May the Department had a significant media campaign on false self-employment. The campaign was aimed at ensuring that there is better public awareness of the important service the Department provides in determining employment status and to help develop a better understanding of the scale and nature of false self-employment. The main advertising campaign ran over a two week period, with digital and social media promotions continuing for a further two weeks. The campaign directed people to a dedicated page on the Department’s website as a first step.

The new web page attracted more than 10,500 visits during the campaign with an average time of over three minutes spent on the page which is regarded as very favourable.

Scope section received some 50 calls and 30 emails during the campaign from individuals who had become aware of the service directly as a result of the ad campaign. Feedback suggests the detailed information available on the dedicated website appears to have been successful in addressing issues for many people. The majority of callers confirmed that they had visited the website first before contacting the Department. Ten formal applications for a Scope decision were registered.

Social Welfare Inspectors are undertaking targeted employer inspections based on the feedback gathered during the campaign. These will focus on the sectors identified and any companies reported to Scope section. While the number of direct contacts with Scope section has been small, the campaign has been successful in raising public awareness about the issue of false self-employment.

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