Brendan Ryan (Dublin Fingal, Labour)
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1071. To ask the Minister for Employment Affairs and Social Protection the legal basis by which different groups that are listed within the various subsections of Part 2 of Schedule 1 to the Social Welfare Consolidation Act 2005 (as amended) can result in groups having differing statutory PRSI classification outcomes; the persons to which the same legislative provisions apply; and if she will make a statement on the matter. [54522/18]

Regina Doherty (Meath East, Fine Gael)
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Schedule 1, Part 2, Section 1 of the Social Welfare Consolidation Act 2005 lists a number of employments which are excepted from the definition of employment for the purposes of social insurance coverage. Spouses of self-employed contributors are specifically one category excepted from PRSI liability in respect of their working activity with their spouse. Family members who work together are generally not insurable under the Social Welfare Acts. Other relatives, such as sons, daughters and grandchildren, are also usually exempted.

However, depending on the nature of the employment relationship, there are some circumstances where such employments are insurable. For spouses, there is scope within the provisions of social welfare legislation to enable spouses who are partners in an enterprise, or who work together in a legally incorporated business, to be insurable and to accrue entitlement to certain benefits and pensions.

Current social welfare legislation reflects the reality that family members regularly support each other without having any intention of entering into formal contractual arrangements. Employment under a contract of service as an employee or as a contract for services as a self-employed person is, by its very nature and necessity, a formal agreement between two or more parties. All contracts bring with them rights and responsibilities that, in this instance, include compliance with legislation relating to PRSI, taxes and employment rights.

Section 12 of the act defines an employed contributor and also excludes those employments listed in Part 2 of Schedule 1 from insurability as it states:

"Subject to this Act—

(a) subject to paragraph (b), every person who, being over the age of 16 years and under pensionable age, is employed in any of the employments specified in Part 1 of Schedule 1, not being an employment specified in Part 2 of that Schedule, shall be an employed contributor for the purposes of this Act"

The categories of excepted employments are listed in Part 2 of Schedule 1 as:

1. Employment in the service of the spouse or civil partner of the employed person.

2. Employment of a casual nature otherwise than for the purposes of the employer’s trade or business, and otherwise than for the purposes of any game or recreation where the persons employed are engaged or paid through a club.

3. Employment by a prescribed relative of the employed person, being either employment in the common home of the employer and the employed person or employment specified by regulations as corresponding to employment in the common home of the employer and the employed person.

4. Employment specified in regulations as being of such a nature that it is ordinarily adopted as subsidiary employment only and not as the principal means of livelihood.

5. Employment specified in regulations as being of inconsiderable extent.

6. Employment under a scheme provided by the Minister and known as Community Employment where that employment began before 6 April 1996.

7. Employment in the State in a company under a written or an oral contract of service, whether expressed or implied, where the employed person is-

(a) the beneficial owner of that company, or

(b) able to control 50 per cent or more of the ordinary share capital of that company, either directly or through the medium of other companies or by any indirect means.

I trust this clarifies the matter for the Deputy.