I thank the Minister of State for taking this Topical Issue debate. I previously raised this issue over 12 months ago, I think. The response I got was that there would not be a move by the Department to treat home tutors as employees of the Department. Home tutors are paid directly by the Department and taxes are deducted by the Department when payment is made. In other words, home tutors have all the indications of being employees as opposed to subcontractors. The issue has changed over the past few months. There was a Supreme Court decision in a case involving Domino's Pizza concerning the treatment of delivery people. A decision by the High Court was reversed by the Court of Appeal. The Supreme Court then gave a decision stating that these workers should be treated as employees. It set out the criteria, including the following questions. First, "Does the contract involve the exchange of wage or other remuneration for work?". Second, "Has the worker agreed to provide their services to the employer personally?" and third, "If so, does the employer exercise sufficient control over the ... employee to render the agreement one that is capable of being an employment [contract]?". The Supreme Court then stated, "If these three requirements are met the decision maker must then determine whether the terms of the contract between employer and worker interpreted in the light of the admissible factual matrix and having regard to the working arrangements between the parties as disclosed by the evidence". Home tutors provide education when children, for one reason or another, are not able to fit into the school arrangement. We have a large number of home tutors, who provide a valuable service.
The issue is that home tutors are in category S, from a tax perspective. Any contribution they make to a pension is not tax deductible. At the same time, they are not on a programme for a pension. It causes problems for them. It is interesting that the Revenue, following the Supreme Court decision, issued a statement that "any business which currently engages contractors, sub-contractors or other workers on a self-employment basis, (i.e. where that worker is not treated as an employee of the business for income tax purposes), should review the nature of any such arrangement(s)". The interesting line in the Revenue guidelines is "where that worker is not treated as an employee of the business for income tax purposes". Income tax for home tutors is deducted by the Department. I know the Department's argument is that these people are employed directly by the parent of the child and not the Department but the Department pays them, deducts tax and sets guidelines about what they can and cannot do. For instance, home tutors have difficulties getting unemployment benefit during the Christmas, Easter and summer periods, when they are not in employment. They are not entitled to take on additional home tutor work during those periods. The Department sets out clear restrictions and deducts tax, yet tutors do not have the benefits of being employees. They are at a huge disadvantage in every respect. The Supreme Court decision requires the Department to review the current practice as to how it will deal with home tutors.