The Supreme Court has ruled that pizza delivery drivers should be considered employees, not contractors, reports RTE.
In 2010/2011, the case concerned delivery drivers working under a contract with Kershan (Midlands) Ltd, operating under the name Domino’s Pizza.
The drivers argued that they were tax workers, but Karshan claimed that they were independent contractors under a “contracts for service”.
Karshan appealed against the Tax Appeals Commissioner’s 2018 decision that drivers should be treated as PAYE workers.
The High Court dismissed the appeal but set aside the judgment of the Court of Appeal.
The Revenue Commissioners appealed against this judgment to the Supreme Court, which today overturned the Court of Appeal’s decision.
The Supreme Court found that the Commissioner of Tax Appeals was correct, as he did, that the drivers were employees of Karshan within the meaning of the relevant provisions of the Tax Consolidation Act.
“The evidence disclosed close control by Karshan over the drivers when at work, and while there were some features of their activities that were consistent with their being independent contractors engaged in business on their own account, the Commissioner was entitled to conclude that the preponderance of the evidence pointed to the drivers carrying on Karshan’s business rather than their own,” the Supreme Court found, reports RTE.
After the judgment, Karshan Midlands Limited issued a statement in which it responded.
“We are disappointed by today’s judgement as we have always maintained that our relationship with our contracted drivers conforms fully with the spirit and intention of their categorisation and engagement as independent contractors,” the company said, reports RTE.
“We are reviewing the judgement with our legal advisers and are unable to comment further at this time,” it added, reports RTE.
The Labour Party described the ruling as a landmark ruling that could have consequences for thousands of workers.
“Credit to the Revenue Commission for taking and persevering with this hugely important case,” said Labour Spokesperson for Workers’ Rights Senator Marie Sherlock.
Ms. Sherlock called on the state to adopt laws that clearly define workers’ terms of employment.
The Irish Congress of Trade Unions (ICTU) welcomed the ruling and said it highlighted the need for better legislation on workers’ conditions of employment.
“This should spur on a decision by the Government to introduce clearer, stronger legislation covering this whole area,” said Owen Reidy, ICTU General Secretary, reports RTE.
Tell us your thoughts in the Facebook post and share this with your friends.