Revenue has confirmed that following the Supreme Court decision in the Domino's Pizza case, the Code of Practice on Determining Employment Status is currently being updated by Revenue, the Department of Social Protection (DSP) and the Workplace Relations Commission (WRC) to reflect the judgment.
Supreme Court Decision
In October 2023, the Supreme Court delivered a significant judgment in Revenue Commissioners v Karshan (Midlands) Ltd t/a Domino's Pizza [2023] IESC 24 in which it examined in detail the law in Ireland on the distinction between employees and self-employed persons and reformulated and restated the law.
Overturning the decision of the Court of Appeal, the Supreme Court held that on the facts of the case, the delivery drivers were properly categorised by Revenue as employees and not as independent contractors as was contended for by Domino's Pizza. For a detailed analysis of this significant case, see our briefing here.
Code of Practice on Determining Employment Status
The Code of Practice on Determining Employment Status (the Code) was updated in 2021 by an interdepartmental working group comprising the DSP, Revenue and the WRC. It sets out the legal tests and factors used by the DSP, Revenue and the WRC, as well as their respective appeal bodies and the courts in determining the classification of workers.
The Code is intended to be a 'living document' which is updated to reflect changes in labour market practices and developments in legislation and case law.
On 3 January 2024, in eBrief No. 003/24 Revenue published a link to the updated Tax and Duty Manual Part 04-01-01-17 – Code of Practice in determining Employment status (Employed or Self-Employed). The Tax and Duty Manual confirmed that the Code is currently being updated by Revenue, DSP and the WRC to reflect the Domino's Pizza case.
In addition to updating the Code, Revenue confirmed that it will issue separate guidelines on the judgment and its impact on the employment status of individuals for tax purposes in early 2024.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.