FOI 2026-28668 requested internal legal advice, guidance or correspondence concerning the application of the Karshan judgment to employment status determinations in respect of a specific company. The response to the FOI confirmed that no such records exist in relation to Karshan judgement and this company. In addition the FOI concerned pension entitlements of workers in this company. Occupational pension entitlements and eligibility do not fall within the remit of DSP and the FOI reply confirmed that such records do not exist.
The Department is aware of the Karshan Disclosure Opportunity guidance issued by the Revenue Commissioners. The Department understands that Revenue is providing employers with an opportunity to correct, without interest or penalties, any payroll tax, USC and PRSI issues in respect of 2024 and where relevant, 2025, arising from bona-fide classification errors following the Supreme Court judgement of 2023.
The settlement terms advised by Revenue make it clear that they “do not apply to any intervention which was open prior to 20 October 2023. Furthermore, they do not apply to any individual who, under the Code of Practice on Determining Employment Status in effect prior to October 2023, should have been classified as an employee. Likewise, they do not apply to any individual who should have been classified as an employee based on any published decision or determination of the Department of Social Protection, the Workplace Relations Commission, the Tax Appeals Commission or a court. As such, where Revenue is of the opinion that the misclassification has arisen from either careless or deliberate behaviour, the full liability to Income Tax, USC and PRSI and interest and penalties will be pursued as provided for under the terms of all relevant legislation.”
The closing date for employers to avail of the disclosure opportunity was the 30 January 2026. The Department will be engaging with Revenue on the correction of relevant employee PRSI records when the applications have been processed by Revenue.
It is always open to any worker who has concerns in relation to their PRSI classification to contact the Department’s Scope section.
