The Supreme Court has ruled that delivery drivers for a pizza company should be treated as employees and not contractors.
The case related to delivery drivers working in 2010/2011 contracts with Karshan (Midlands) Ltd, trading as Domino's Pizza.
The drivers argued they were employees for tax purposes, but Karshan said they were independent contractors under "contracts for service".
Karshan had appealed a 2018 decision of a Tax Appeals Commissioner that the drivers should be treated as PAYE workers.
The High Court rejected that appeal, but the Court of Appeal overturned the decision.
The Revenue Commissioners appealed that ruling to the Supreme Court and today it overturned the Court of Appeal decision.
The Supreme Court found that the Tax Appeals Commissioner was entitled to conclude, as she did, that the drivers were employees of Karshan for the purposes of the relevant provisions of the Taxes Consolidation Act.
"The evidence disclosed close control by Karshan over the drivers when at work, and while there were some features of their activities that were consistent with their being independent contractors engaged in business on their own account, the Commissioner was entitled to conclude that the preponderance of the evidence pointed to the drivers carrying on Karshan's business rather than their own," the Supreme Court found.
Karshan Midlands Ltd issued a statement following the ruling, giving its reaction.
"We are disappointed by today's judgement as we have always maintained that our relationship with our contracted drivers conforms fully with the spirit and intention of their categorisation and engagement as independent contractors," the company said.
"We are reviewing the judgement with our legal advisers and are unable to comment further at this time," it added.
The Labour Party described the ruling as a landmark judgement which could have implications for thousands of workers.
"Credit to the Revenue Commission for taking and persevering with this hugely important case," said Labour Spokesperson for Workers' Rights Senator Marie Sherlock.
Ms Sherlock called on the State to legislate to ensure that the employment status of workers is clear cut.
The Irish Congress of Trade Unions (ICTU) welcomed the ruling and said it highlights the need for greater legislation when it comes to the employment status of workers.
"This should spur on a decision by the Government to introduce clearer, stronger legislation covering this whole area," said Owen Reidy, ICTU General Secretary.
