Dublin: Following a Supreme Court ruling, the Irish government is reassessing the employment status of delivery drivers, with the Revenue releasing new guidance on the matter.
In October 2023, the Supreme Court ruled that delivery drivers should be considered employees rather than independent contractors. In response, the Revenue has published a Tax and Duty Manual outlining a five-step process to determine a worker’s employment status. This manual includes examples from Supreme Court judgments to clarify the criteria.
Businesses are reminded by the Revenue to correctly deduct and report taxes from employee salaries. Additionally, companies are encouraged to review their workforce models in light of the Supreme Court decision.
The ruling stemmed from a case involving delivery drivers working for Domino’s Pizza under Karshan Limited in the Midlands during 2010-2011. The drivers argued that they were employees, while Karshan contended they were independent contractors. The Supreme Court’s decision upheld a 2018 ruling by the Tax Appeals Commissioner that classified the drivers as employees.
This landmark ruling has significant implications for the tax treatment and rights of delivery drivers in Ireland.