asked the Minister for Labour if in respect of the former employees of a company (details supplied) in County Kerry who have been awarded lump sums by the Employment Appeals Tribunal in accordance with the provisions of the Protection of Employees (Employers' Insolvency) Act, 1984, he will make regulations under the provisions of this Act so that his Department may pay the sums awarded by the Employment Appeals Tribunal having regard to the financial circumstances of the company involved; and if he will make a statement on the matter.
Written Answers. - Employment Appeals Tribunal Awards.
234.
The employees in question have applied to my Department under the Protection of Employees (Employers' Insolvency) Act, 1984, for payments of awards made by the Employment Appeals Tribunal under the Minimum Notice and Terms of Employment Act, 1973, also for payment of arrears of wages and arrears of holiday pay.
The problem is that the company concerned appears to have ceased trading but has not been formally put into liquidation or receivership. Consequently, the employer cannot be regarded as insolvent under section 1 of the 1984 Act.
However, there is provision in the Act whereby the Minister for Labour may, by regulations, provide that employers may in certain circumstances be deemed to be insolvent for the purpose of the Act so that payments may be made to the employees of such employers. The making of such regulations is under active consideration but this has given rise to substantial legal and administrative problems. I hope that these can soon be resolved but, in advance of the making of regulations, it would not be possible for me to say that they would apply in the circumstances of the case referred to in the question. The case has, however, been noted in my Department and it will be considered as quickly as possible when the proposed regulations are made.