Dáil Éireann debate -
Thursday, 12 Dec 1985

Vol. 362 No. 11

Written Answers. - EC Directive on Insolvency.

79.

Mr. Taylor

asked the Minister for Labour if he is aware that the definition employment relationship in Article 2 of the EC Directive on the Insolvency of Employers (80/987) has not been taken into the Employer's Insolvency Act, 1984, which is the particular definition used to describe the condition of employment of seamen reflecting the special circumstances of an employment relationship governed by the Merchant Shipping Act, 1984, and in order to rectify the position if he will make a Statutory Instrument under the European Communities Act to further amend the Minimum Notice Act, 1973, with effect from 22 October 1983 so as to repeal section 3(1)(f) of the Act for the purpose of giving better effect to the EC Directive.

80.

Mr. Taylor

asked the Minister for Labour if he is aware that the definition employment relationship in Article 2 of the EC Directive on the Insolvency of Employers (80/987) has not been taken into the Employer's Insolvency Act, 1984, which is the particular definition used to describe the condition of employment of seamen reflecting the special circumstances of an employment relationship governed by the Merchant Shipping Act, 1984, and in order to rectify the position, if he will make a Statutory Instrument under the European Communities Act to amend the Protection of Employment Act, 1977, with effect from 22 October 1983 so as to make it clear that the Act of 1977 applies to employment relationship such as those referred to under an employment agreement pursuant to Part 2 and Part 4 of the Merchant Shipping Act, 1984.

84.

Mr. Taylor

asked the Minister for Labour if he is aware that the definition employment relationship in Article 2 of the EC Directive on the Insolvency of Employers (80/987) has not been taken into the Employer's Insolvency Act, 1984, which is the particular definition used to describe the conditions of employment of seamen reflecting the special circumstances of an employment relationship governed by the Merchant Shipping Act, 1984; and in order to rectify the position if he will make a Statutory Instrument under the European Communities Act to further amend the Redundancy Payments Act, 1967, with effect from 22 October 1983 so as to make it clear that the Redundancy Payments Acts apply to employment relationships such as those referred to under an employment agreement pursuant to Part 2 and Part 4 of the Merchant Shipping Act, 1894.

86.

Mr. Taylor

asked the Minister for Labour if he is aware that the definition employment relationship in Article 2 of the EC Directive on the Insolvency of Employers (80/987) has not been taken into the Employers' Insolvency Act, 1984, which is the particular definition used to describe the conditions of employment of seamen reflecting the special circumstances of an employment relationship governed by the Merchant Shipping Act, 1984; and in order to rectify the position if he will make a Statutory Instrument under the European Communities Act to amend the Unfair Dismissals Act, 1977, with effect from 22 October 1983 so as to make it clear that the Act of 1977 applies to employment relationships such as those referred to under an employment agreement pursuant to Part 2 and Part 4 of the Merchant Shipping Act, 1894.

Minister for Labour (Mr. Quinn)

I propose to take Questions Nos. 79, 80, 84 and 86 together.

The questions appear to suggest that the EC Directive requires that, except for those categories of workers named in the Annex, all workers should be given parity in the matter of rights covered by the directive. My understanding of the directive is that it does not have this implication and that it merely requires that certain existing entitlements of employees, whose employers become insolvent, should be paid from a guaranteed fund.

These questions raise issues of interpretation of EC and domestic legislation on which my Department is seeking legal advice. I will advise the Deputy of the outcome in due course.

81.

Mr. Taylor

asked the Minister for Labour if, in order to enable employees of insolvent employers and insolvent companies in particular to have direct access to the Employment Appeals Tribunal so that claims may be made to his Department under the Employer's Insolvency Act, 1984, and to give better effect to the EC Directive 80/987 on the insolvency of employers, he will make a Statutory Instrument under the European Communities Act to prevent section 222 of the Companies Act, 1963, from being used to compel an unemployed or redundant worker to incur the cost of an application for the consent of the High Court in order to make a valid claim on the employers' insolvency fund.

Minister for Labour (Mr. Quinn)

As I indicated in reply to a previous Dáil Question, I am consulting the Minister for Industry, Trade, Commerce and Tourism as the Minister responsible for the Companies Acts, but it will be appreciated that the question of amendment of section 222 of the 1963 Act raises other issues which require detailed consideration. In these circumstances it would be inappropriate for me to use the provisions of the European Communities Act to amend the Companies Act, 1963, in the manner suggested by the Deputy.

I am, of course, concerned to ensure that employees of insolvent employers are allowed reasonable opportunity to establish their entitlements under the provisions of the Protection of Employees (Employers' Insolvency) Act, 1984, and I am aware of the difficulties that can arise in cases where liquidators claim that they are precluded by virtue of the provisions of section 222 from attending hearings of the Employment Appeals Tribunal. It would not, however, be open to me to compel liquidators not to rely on section 222 in those circumstances.

82.

Mr. Taylor

asked the Minister for Labour if he will state in respect of the Protection of Employment Act and in relation to the manner in which that Act is administered by his Department: (a) the number of prosecutions initiated against defaulting employers in each of the past five years; the number of proceedings in respect of which court decisions were made and the number and amount of fines imposed by the courts; (b) the number of cases known to his Department in 1984 and 1985 arising from the RP1 notices given or not given to his Department under the Act where employers were insolvent or became insolvent, where it was clear from the dates of the RP1 that proper notice had not been given under the Act: (c) if it is the intention of his Department to arrange for the payment of compensation to employees under the Insolvency Act, 1984, where proper notice had not been given under the Protection of Employment Act; (d) if it is the intention of his Department to pursue solvent employers through the courts where proper notice was not given in each of the past two years; (e) the number of officers, if any, of his Department involved full time in monitoring the operation of and the enforcement of the Act; and (f) the number of cases now pending before the courts.

Minister for Labour (Mr. Quinn)

(a) No prosecutions have been initiated against employers for offences under the Act during the past five years. (b) RP1 notices are required by the Redundancy Payments Acts and not by the Protection of Employment Act, 1977. Where an employer proposes to create collective redundancies within the meaning of the latter Act, he is required to notify the Minister in accordance with the Protection of Employment Act, 1977 (Notification of Proposed Collective Redundancies) Regulations, 1977, (SI No. 140 of 1977). Section 7(2) (e) of the Protection of Employment Act, 1977, exempts from the scope of the Act "employees in an establishment the business carried on in which is being terminated following bankruptcy or winding-up proceedings or for any reason as a result of a decision of a court of competent jurisdiction". (c) There is no provision in the Insolvency Act, 1984, to enable compensation to be paid to employees where notice in accordance with the provisions of the Protection of Employment Act has not been given. (d) Where there is evidence that a solvent employer has committed an offence under the Protection of Employment Act, 1977, the matter will be submitted to the Chief State Solicitor with a view to initiating proceedings against him. (e) Normally two officers are involved in monitoring the operation of the Act and in enforcing its provisions. (f) None.

83.

Mr. Taylor

asked the Minister for Labour if he will furnish in respect of the Employer's Insolvency Act, 1984, affecting former employees of Moracrete Limited, in liquidation, the total number of applications for payments from the insolvency fund including applications (1) (a) for redundancy compensation; (b) lack of notice; (c) holidays; (d) pensions; (e) arrears of wages; (f) Labour Court Recommendation No. 8896 made under section 20 (1) of the Industrial Relations Act, 1969; and (g) for lack of notice under the Protection of Employment Act; (2) the amount paid from the fund under each heading; and (3) the amounts outstanding and the reasons for non-payment.

Minister for Labour (Mr. Quinn)

Thirty-nine former employees of Moracrete Limited have been paid a total of £60,116.91 in statutory redundancy lump sums from the redundancy and employers' insolvency fund. My Department has not received any formal applications for payments from the fund of other outstanding entitlements of former employees of the company.