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Dáil Éireann debate -
Tuesday, 2 May 1978

Vol. 306 No. 1

Written Answers. - European Commission Ruling.

285.

asked the Minister for Labour the estimated annual cost, and the number of workers annually involved, in the operation of the European Commission's ruling that the State must ensure that employees are paid all wages and other fringe benefits due in the event of the bankruptcy of their employers; how soon he will introduce the legislation necessary to implement the ruling; the way in which the scheme will be financed; and if compensation will be paid to employees, at least from the date of the Commission's ruling.

There is no European Commission "ruling" in this matter. However, the Commission submitted to the Council of Ministers on 13 April 1978 a proposal for a Council Directive on the approximation of the laws of the member states concerning the protection of employees in the event of the insolvency of their employer. The aim of this proposal is the creation in each member state of appropriate means for satisfying outstanding claims for remuneration, and so on by employees in the event of employers' insolvency. The proposal seeks to provide increased protection for employees and to harmonise the various provisions existing in the member states.

This draft will now be examined by the European Parliament, the Economic and Social Committee and by the Council of Ministers. Ireland will be represented at all stages of this examination.

It would be premature to attempt to deal with the latter part of the Deputy's question at the present stage of consideration of this Commission proposal.

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