Supreme Court marks a significant development in the regulation of Ireland’s ‘gig economy’
It may take some time before the full implications of last week’s Supreme Court ruling on the employment status of delivery drivers for Domino’s Pizza become clear. But the judgment, which found the company had been incorrect in treating the drivers as self-employed, marks a significant development in the regulation of Ireland’s so-called “gig economy”.
Allegations that bogus self-employment is rife in Ireland have been made for many years, with particular attention paid to certain sectors, including the construction industry, media companies and the arts. Short-term or project-based work does have a legitimate and important role to play in such industries and not everyone wants to be a permanent employee, with some preferring the autonomy of operating as a contractor.
Recent changes in the economy, including the growth of web-based food delivery platforms and the outsourcing of IT and other services to third-party providers, have contributed to a not unreasonable perception that some employers are misusing self-employment to avoid taking on permanent staff.
These practices also deprive the State of income through PRSI. It was the Revenue Commissioners which took this case all the way to the Supreme Court. That route will hardly be available to ordinary individuals, especially since these issues arise most commonly in workplaces where union representation is limited. But the judgment marks a notable shift in the legal interpretation of self-employment and many will take note.
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