Purpose – This article explores the growing ambiguity in employment classification in the context of the gig economy and the rise in nonstandard work. It seeks to examine how employment status, a concept at the core of the welfare state, affects the interpretation and enforcement of employment and welfare rights and the pivotal role played by state institutions. Design/methodology/approach – We use a case study approach drawing on a recent landmark case in Ireland (Karshan vs Revenue Commissioners). We analyse the role of state institutions in shaping individual employment and welfare rights while securing economic efficiency and income tax generation for the state. We draw on the body of work surrounding the Supreme Court judgement including policy documents and public communication from relevant state institutions in their responses to the judgement. Findings – We find that through the interplay of institutions the state contributes further to labour market dualisation both in practical and conceptual terms maintaining a fragmented and two-tiered concept of what constitutes employment for tax purposes in one sphere and for social and employment rights in another. Our findings show that a worker can simultaneously occupy insider and outsider positions in this regard. Originality/value – The article offers a novel perspective by moving beyond the legal analysis of employment status to examine the integration of economic and social domains, highlighting how state institutions contribute to and even exacerbate labour market dualisation.
Ryan et al. (Mon,) studied this question.