The Irish Times view on bogus self-employment: Domino’s judgment may change the equation for workers

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”. It comes on the heels of revelations that RTÉ may facs substantial liabilities for hundreds of workers who were similarly classified, despite having the characteristics of an employee.

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. But if the relationship has all the characteristics of employment, there is no excuse for acting otherwise.

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. This feeds into a broader sense that previously secure jobs with good conditions are being displaced by a culture of precarity, with little job security, limited access to benefits such as pensions, holiday pay or illness cover and less protection against unfair dismissal or discrimination in the workplace.

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.