In Ireland, there are a number of statutory bodies whose remit includes determining the employment status of a person. Each of these bodies make their determinations independently of each other in respect of the particular functions for which they are responsible. While Revenue has responsibility for determination of employment status of a worker for taxation purposes, responsibility for determination of employment status of a worker for PRSI purposes falls to the Department of Social Protection (DSP).
Following the Supreme Court’s judgment in ‘The Revenue Commissioners v Karshan (Midlands) Ltd. t/a Domino’s Pizza’ , I understand that the Revenue Commissioners are now providing employers with an opportunity to correct any payroll tax issues in respect of 2024 and where relevant, 2025.
The Labour Court and the Workplace Relations Commission (WRC) are independent statutory offices under the aegis of my Department. The WRC’s functions include adjudication, mediation, conciliation, information provision, and inspection of employer records for compliance. The Labour Court is the court of last resort in industrial relations disputes and the sole appellate body in employment rights cases. Whether a person is an employee under employment rights legislation may be determined by the WRC’s Adjudication Service and the Labour Court (on appeal), as a preliminary issue, and in such cases, the current law is applied and where employment status is an issue, the Karshan ruling is one of the factors considered and applied where appropriate.
The Programme for Government includes a commitment to support the central role of the WRC and the Labour Court in industrial relations and employment rights. My Department together with the workplace relations bodies actively monitor the rate of complaints and continuously evaluate resource requirements which are necessary for the performance of their functions.
