Started working PT and have been told that I will be paid through an agency company.

[tigershark]

I started working part-time for a company recently and was informed that my wages were to be paid through a contractor agency.

The company had up until a few months ago paid workers through the PAYE system.

They then decided they would start paying through a Contractor agency, "to cut down on administration" they said, nothing to do with the fact they wouldn't have to pay employer PRSI anymore of course.

Apparently there was a lot of objection and bitterness among the workers at the time but they eventually felt that they had to accept their fate.

I was a bit concerned at the prospect of being paid through an agency but not as concerned as when I saw how much PRSI I actually would have to pay. I would have to pay both employer and employee PRSI as well as 5% of everything earned to the contractor agency. On a gross salary of €1,600 per month I would have to pay a total of €296 compared with a total of €77.20 if paying as a PAYE worker.

Is there any legislation that protects the PAYE worker from gross abuse like this by unscrupulous employers who don't want to pay their share, facilitated by contractor agencies and accounting firms out to make an easy killing from vulnerable, often poorly paid workers.

How can it be the case that a Company can simply decide its workers are not PAYE workers any more and subject them to this perversion?

 

[Tentman]

Contact [broken link removed]

 

[ajapale]

Moved from Taxation to Work & Employment Rights which is where this type of question is discussed on AAM.

Is there a trade union?

Broadly speaking what industry do you work in?

 

[pudds]

Contact [broken link removed]

that link seems to be broken

 

[pudds]

Contact [broken link removed]

that link seems to be broken

EDIT: Working now

 

[tigershark]

Is there a trade union?

Broadly speaking what industry do you work in?[/QUOTE]

Theres no trade union.

I cant really say what industry it is without breaking anonymity, only that its a very small industry in Ireland.

I complained and said It wouldn't be worth my while to continue and was given a pay increase to bring my take home back into line with what I would take home under normal PAYE, so I cant really complain about my own situation any more but I am sure there are a lot of other people who would not be given a rise like this and suffer a large drop in take home pay due to this sort of arrangement.

It seems very unjust for an employer to be able to classify his employees as contractors so that he can reduce his labour costs and make them suffer a reduction in take home pay.

 

[Complainer]

It seems very unjust for an employer to be able to classify his employees as contractors so that he can reduce his labour costs and make them suffer a reduction in take home pay.

It is probably illegal.

Might be worth talking to Revenue, who may well deem you to be an employee anyway.

 

[ajapale]

..who may well deem you to be an employee anyway.

I agree.

Employment practices differ according to industry.

Is is possible for you to mention the broad industry categorisation without mentioning the specific firm?

For example is it the horticultural industry, the transport industry, are you a docker, the retail industry, the construction industry or are you working in IT.

Does you company operate exclusively in the Republic or has it operations in the UK or other juristictions? I have come across UK based companies who try to impose practices based on UK employment law and not RoI law.