Companies could be fined up to €25,000 for falsely marking staff as self-employed.

Classifying staff as self-employed rather than permanent means companies avoid paying employer's PRSI and benefits such as holiday and sick pay.

Under planned government legislation, the maximum penalty for companies convicted of the practice would rise by €12,000.

The Sunday Business Post reports it's part of a new government crackdown that will see the number of inspections increase.