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Dáil Éireann debate -
Tuesday, 16 Dec 1986

Vol. 370 No. 13

Written Answers. - Employment Regulations.

296.

asked the Minister for Labour if he will make regulations forthwith under the European Communities Act, 1972, for the purpose of better applying the EC directive under the Protection of Employees (Employers' Insolvency) Act, 1984, with effect from 22 October 1983 and if he will make other regulations under that Act and under other enabling legislation for the following purposes: (1) the repeal of section 3 (1) (f) of the Minimum Notice Act, 1973, and section 7 (2) (d) of the Protection of Employment Act, 1977 (marine employees); (2) for full implementation of tribunal awards made under the Minimum Notice Act, 1973; (3) for implementation of Labour Court recommendations on final rates of pay and on terms for redundancy compensation agreed for mariners and other employees prior to a date of insolvency; (4) the application of the Act of 1984 to employees between age 16 and 18 to prevent exploitation of juvenile employees; (5) the application of the Act to employees presently excluded under section 3 but to protect pension contributions; and (6) to enable trade union members to recover trade union contributions retained by an insolvent employer.

The provisions of Council Directive No. 80/987/EEC, which is designed to protect statutory and contractual entitlements of employees whose employers have become insolvent, are already fully implemented under the Protection of Employees (Employers' Insolvency) Act, 1984.

The position in regard to each of the specific amendments suggested is as follows:

(1) The question of repeal of section 3(1) (f) of the Minimum Notice and Terms of Employment Act, 1973, and of section 7(2) (d) of the Protection of Employment Act, 1977, would be appropriate for consideration as part of more general reviews of those Acts. It would not be feasible, in any event, to repeal them retrospectively as suggested by the Deputy since this would impose retrospective obligations on the employers concerned. In relation to the amendment of the Protection of Employment Act, 1977, it is relevant to mention also that EEC Council Directive No. 75/129/EEC of 17 February 1975 to which that Act gives effect specifically excludes "the crews of seagoing vessels" from its scope.

(2) Presumably, this refers to the upper wage limit applied to payments under the Protection of Employees (Employers' Insolvency) Act, 1984, in respect of awards made by the Employment Appeals Tribunal including awards made under the Minimum Notice and Terms of Employment Act, 1973. The inclusion of a limit of this kind, which is normal in benefit schemes, is specifically provided for on cost grounds in Council Directive 80/987/EEC relating to insolvency payments. The amount of the limit is reviewed periodically in the light of movements in wages and other relevant considerations.

(3) This proposal raises issues of free collective bargaining which would not be appropriately dealt with in the context of the Protection of Employees (Employers' Insolvency) Act, 1984. Any disputes between employees and employers concerning the appropriate rates of pay at the date of insolvency for the purpose of the 1984 Act or of the amounts of statutory redundancy lump sums under the Redundancy Payments Acts can be referred to the Employment Appeals Tribunal for determination under existing provisions.

(4) Employees between the ages of 16 and 18 are eligible for payments under the Insolvency Act, 1984, subject to the same conditions as other employees and specifically provided that they are "employed in employment which is insurable for all benefits under the Social Welfare Acts, 1981 to 1984. There is, therefore, no basis for any suggestion that young workers are open to exploitation on that account.

(5) I am not aware that any specific problem has arisen as regards reimbursement of pension contributions under the 1984 Act solely because of the operation of section 3 of that Act, which relates to employees in employment which is insurable for all benefits under the Social Welfare Acts, 1981 to 1984.

(6) I understand that the issue of application of section 6 of the 1984 Act to trade union contributions deducted from wages of employees of insolvent employers but not paid over to the trade unions concerned is at present the subject of an appeal before the Employment Appeals Tribunal and that the question of reference to the courts for determination of the issue may arise. In the circumstances, I feel that it would be better for me to withhold comment at this stage.

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