Sports presenter Des Cahill is one of two high earners caught up in a legal battle with the Department of Social Protection that could determine how broadcasters at RTÉ are paid in the future, writes Ken Murray.
The Department of Social Protection is claiming RTÉ was obliged to make extra PRSI payments on their salaries for their time with the State broadcaster.
Defeat for RTE in the High Court could cost the organisation close to €11m in back payments and legal fees, it was reported yesterday.
The case hinges on the terms by which RTE’s broadcasters’ employment is classified, whether they were treated as employees or contractors.
RTÉ has appealed to the High Court arising from the Department’s inquiry into alleged bogus self-employment arrangements at its Donnybrook campus.
The two High Court cases have been brought by RTÉ against the Social Protection Minister and an appeals officer in the Department of Social Protection.
The second high-earner involved was not named.
The cases are listed for July 8.
The cases come as morale between management and staff remains low.
The issue of on-air presenters being paid through their respective companies means they can limit their tax liabilities and write off every day costs associated with their work when filing tax returns.
However, it is understood some presenters delayed taking out pension plans and may not be entitled to welfare payments.
It is believed this and other issues over what amounts to being a contractor and a staff employee are central to the ongoing litigation.
RTÉ has described the two High Court cases as “pathfinder cases”.
It has said it has put aside €11m “to cover the overall costs” for the two cases as they would affect cases involving 20 high-paid individuals or companies.
RTÉ has set aside another €11m for 124 cases which remain to be heard as part of the scope process.
Among the independent contractors who are RTÉ’s top ten highest paid broadcasters are Ray D’Arcy (What Next Productions Ltd), €250,000; Brendan O’Connor (BOC Communications Ltd), €245,000; Joe Duffy (Claddaghgreen Ltd), €351,000; Claire Byrne (Derrough Media Ltd), €280,000; and Miriam O’Callaghan, €263,500.
The highest-paid earners employed directly are Darragh Maloney on €186,650, George Lee on €185,674 and Mary Wilson on €199,194.
An RTÉ spokesman said they were unable to comment on issues before the courts and was not in a position to identify the other individual involved in the litigation.
