The Legislative Framework
The Irish Legal system is best described as a common law system i.e based on custom and judicial decision as opposed to statute Law.
It is basically the same as the U.K. except that Ireland has a written constitution (1937).
The Contract of Employment:
The contract of Employment constitutes the legal basis of the employment relationship. Common Law in Ireland makes a distinction between:
1. The Control Test
The earliest test based on the notion that the employer has the right to control how the work is done and how to do it. It’s a simplistic view and cannot be applied to highly skilled employees of today.
2. The Organisation or Integration Test
A more sophisticated test based in the view that an employee is a person whose work is integrated into the business, whereas independent contractors merely work for the business.
3. The Multiple or Economic Reality Test
This is the most modern test. The courts review the entire arrangement between employer and worker and decide whether the worker is an employee or an independent contractor. They consider the following:
In most cases it will be clear whether an individual is employed or self-employed. However, it may not always be be so obvious. An individual would normally be considered to be an employee if he or she:
The Irish Legal system is best described as a common law system i.e based on custom and judicial decision as opposed to statute Law.
It is basically the same as the U.K. except that Ireland has a written constitution (1937).
The Contract of Employment:
The contract of Employment constitutes the legal basis of the employment relationship. Common Law in Ireland makes a distinction between:
- Contract of Service (an employee)
- Contract for Service (an independent contractor).
1. The Control Test
The earliest test based on the notion that the employer has the right to control how the work is done and how to do it. It’s a simplistic view and cannot be applied to highly skilled employees of today.
2. The Organisation or Integration Test
A more sophisticated test based in the view that an employee is a person whose work is integrated into the business, whereas independent contractors merely work for the business.
3. The Multiple or Economic Reality Test
This is the most modern test. The courts review the entire arrangement between employer and worker and decide whether the worker is an employee or an independent contractor. They consider the following:
- How wages are paid
- Is income tax deducted-PAYE-PRSI
- Does the worker share in Profit?
In most cases it will be clear whether an individual is employed or self-employed. However, it may not always be be so obvious. An individual would normally be considered to be an employee if he or she:
- Is under the control of another person who directs as to how, when and where the work is to be carried out.
- Supplies labour only.
- Receives a fixed monthly/weekly wage.
- Cannot sub-contract the work.
- Works set hours or a given number of hours per week or month.
- Works for one person or organisation.
- Is entitled to extra pay or time off for overtime.
- Owns his or her own business.
- Is exposed to financial risk.
- Has the opportunity to profit from sound management.
- Has control over what is done, how it is done, when and where it is done.
- Is free to hire people.
- Can provide the same service to more than one person at the same time.
- Provides his or her own insurance cover.
- Controls the hours of work in fulfilling the job obligations.
