Patricia King gives rough figures of what could be lost to state in Revenue in construction as result of bogus self-employment – €240 million a year in PRSI and tax. Neither Department of Social Protection or Revenue gives any indication of caring much.
— Paul Murphy (@paulmurphy_TD) January 31, 2019
This morning.
At a meeting of the Joint Oireachtas Committee on Employment Affairs and Social Protection.
General Secretary of the Irish Congress of Trade Unions Patricia King (top) and the general secretary of the National Union of Journalists Seamus Dooley (above) addressed the matter of bogus self-employment.
Meanwhile…
The Irish Times reports:
Talks with State broadcaster RTÉ in relation to the employment status of more than 100 of its contractors have been “tortuous and extremely difficult”, the National Union of Journalists has said.
Séamus Dooley, the union’s general secretary, was giving evidence to the joint Oireachtas committee on employment affairs and social protection in relation to “bogus self employment” on Thursday.
Bogus self-employment occurs when workers who should be classified as employees are marked as self-employed, which can lead to benefits for employers who otherwise would have to pay PRSI and sick pay.
RTÉ last year agreed to review the employment status of 106 contractors after an independent report by law firm Eversheds Sutherland found that they have “attributes akin to employment”.
Mr Dooley said he would be meeting with senior management at RTÉ on Friday in relation to the matter. He described the period since the review by Eversheds Sutherland as “tortuous and extremely difficult”.
“I have spent more time in Montrose than any human being should be required to do,” he said, before criticising the culture of media “personalities” that are treated differently to other staff.
NUJ critical of ‘tortuous’ talks with RTÉ on contractors (Colin Gleeson, The Irish Times)
Previously: ‘I Don’t Want To Make Employers The Bad Guy’
Meanwhile…
Today at the employment Committee @irishcongress renewed its call for the enactment of new laws, like those contained in the @labour Bill which passed Second Stage last year to #EndBogusSelfEmployment. The govt’s softly-softly approach is allowing dodgy employers off the hook pic.twitter.com/nIw3TgSgzV
— Ged Nash (@geraldnash) January 31, 2019
More greed, more problems
These estimates from the unions are a bit dubious.
The self-employed indeed pay much lower PRSI than do employees.
They also receive MUCH LOWER benefits.
PRSI stands for pay-related social insurance. The clue is in the ‘insurance’ part. If you shift people onto paying much more PRSI you have to start paying them much more benefits.
On net, the exchequer might not do much better.
They also fleece “Joe Public” by accepting cash only for jobs.
Eh firstly the employer pays most of the PRSI – employer PRSI.
Secondly some social welfare payments are means tested, so many would qualify for a payment if unemployment, but didn’t contribute to a benefit from paying a rate of PRSI class.
It’s a tax avoidance scheme that Leo the early riser won’t go out with a placard with.
“Attributes akin to employment”
Nice sophistry there.
These journalists, presenters, etc are employees – they work at the same desk, they work hours specified by the employer, they do work specified by the employer, but they don’t have the security, salary structure and protections of a staff job. Their situation is concealed by that of several highly paid people who work on highly advantageous contracts.
If RTÉ doesn’t want to staff them it’s because it’s getting them cheaper under ‘self-employment’ conditions.
And the fact that a public service entity has people working under such an arrangement offers justification to private companies to follow its bad example.