I have a query relating to potential employment liabilities arising from relationships with funded Agencies. I work in the Public Sector, and there are a range of Agencies who receive direct funding from us. In many cases, this funding is utilised wholly or partially by the voluntary group or related Agency to employ staff to provide services in the Community. I am concerned that if similar guidelines to those used by Revenue to determine whether personnel are employees or self-employed/contractors were applied to such funded groups, an employment liability may be established with the Public Sector funding organisation. This may be in respect of Fixed Term Work Act, Pension entitlement and/or redundancy claim, where funding (and related employment) is ceased. I would welcome an opinion as to whether these concerns are real or reasonable.
Posted in : First Tuesday Q&A ROI on 5 March 2013
Zelda Cunningham
Arthur Cox
In real terms, it is not possible to completely rule out a claim by an employee/independent contractor that the Public Sector Organisation is his/her employer, however, the strength of any such claim relies on the strength of the contractual information and the factual matrix surrounding the work of the Funded Agency and the Public Sector Organisation.
It would be helpful to examine the contractual documentation as between the Funded Agency and the worker. If the worker is under a written contract with the Funded Agency as an employee or as an independent contractor then this will be helpful in terms of reducing the risk of employment liability for the Public Sector organisation. Similarly,
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Back to Q&A's This article is correct at 02/09/2015
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Zelda Cunningham
Arthur Cox
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