SE71300 - Tax treatment of Working Rule agreements: background

Working Rule agreements are drawn up by representatives of employers and trade unions to govern, on a national basis, rates of pay and conditions of work of hourly-paid manual workers (operatives) in the construction and allied industries. They apply essentially to site-based workers, that is those who do not normally work at their employer's base or depot, but instead, work at a succession of different sites.

The agreements include sections providing for payment of daily travel and lodging etc. allowances. Where significant periods of time are spent at the same site, such allowances will, strictly, be taxable, but the taxation position is less clear when movement from one site to the next is more frequent. In practice, to provide a degree of certainty and administrative convenience, and in recognition of the mobility traditionally required of construction industry workers, the Revenue has for many years agreed specific taxation procedures to be applied to payments of travel and lodging, etc. allowances made under Working Rule agreements.