Government urged to clamp down on 'fake' self-employment
The Government is coming under increasing pressure from Fianna Fáil to act against ‘fake’ self-employment by amending forthcoming legislation.
Revenue Commissioners have been accused by Fianna Fáil’s welfare spokesman, Willie O’Dea, of failing to stop employers allowing their lower-paid workers to become contractors rather than employees, denying them full employee status and subsequent employee rights.
Mr O’Dea claims that bogus self-employment is most frequent in Ireland’s construction industry, where semi-skilled workers and labourers are being encouraged to re-designate themselves as contractors having been previously treated as employees. O’Dea added there were more than 75,000 “self-employed workers who had no employees” in 2018.
O’Dea revealed that “one-in-five” ‘fake’ self-employed people “do not have a third-level qualification”. He says this suggests the issue “mainly concerns vulnerable people with low skills and an ability to earn only low pay”.
The spokesman also suggested that bogus self-employment was being “indirectly used to promote the so-called gig economy” leading to a “loss of Government income and the extension of injustice”.
Two years ago, an inter-departmental report was compiled on non-compliance, with a specific focus on Ireland’s construction sector. Almost 18,000 construction investigations carried out in 2016 yielded €58 million in unpaid tax, interest and penalties. It is this non-compliance which continues to penalise the public purse.
The Revenue Commissioner’s response to O’Dea’s accusations focused on their continued efforts to encourage employers to follow the rules. The Commissioner added it was wholly aware of the risks of revenue loss to public services. However, it also stated the onus is firmly on the Government and the Oireachtas to close these employee loopholes by law if it is deemed a serious problem.
Mr O’Dea is plotting an amendment in the coming term to the Employment Miscellaneous Provisions Bill tabled by Social Protection Minister, Regina Doherty. The amendment would tighten employers’ overall obligations.
Last updated: 5th April 2018