The release of the updated Code of Practice on Determining Employment Status, some of the latest key release from Revenue and information on COVID-19 support schemes feature in the Irish tax developments.

The Minister for Social Protection, Heather Humphreys, TD, recently published an updated Code of Practice on Determining Employment Status. The Code of Practice sets out the key characteristics that inform decisions on employment status, considering current labour market practices and developments in legislation and case law. These developments include new forms of work, such as platform work and the gig economy. The Code is intended to be a ‘living document’, which will continue to be updated to reflect relevant changes into the future according to the Department of Social Protection.

Minister Humphreys commented:

“I share the concern expressed by many commentators over the years that employees should be correctly classified for social insurance, taxation and employment rights purposes. We all want to ensure that workers’ rights and entitlements are protected and, in particular, that workers are not incorrectly, or falsely, classified as self-employed.

“The publication of this updated Code of Practice is an important and necessary step in guiding and informing people who need to understand this complex issue. The Code sets out the law as has been developed in the courts through case law over many years.

“Having first been published in 2001 by the Employment Status Group under the Programme for Prosperity and Fairness, the Code of Practice was updated in 2007. This new update was prepared by an Interdepartmental Working Group consisting of officials from my Department, the Workplace Relations Commission and the Revenue Commissioners to ensure it accurately reflects developments in case law and legislation since 2007. Key stakeholders such as IBEC and ICTU were consulted along the way as the drafting progressed.

“I believe this updated code will prove to be of great benefit to many people, including employers, employees, independent contractors, legal, financial and HR professionals, statutory investigators, decision-makers and adjudicators.

“As previously indicated, I propose to place this code on a statutory footing and will bring forward legislation later this year.

“In the meantime, I hope that its publication will encourage workers and employers to ensure their working arrangements are properly categorised. My Department’s Scope Section is on hand to support with advice or indeed provide a formal determination of employment status, if needed. They can be contacted at scope@welfare.ie.”

The Tax and Duty Manual – Part 42-04-35A – The Employers’ Guide to PAYE – was subsequently updated in relation to the criteria used to determine if an individual is employer or self-employed under the new Code of Practice. See Revenue eBrief No. 162/21 for further details.