Vol. 423 No. 2
49 Mr. J. Higgins asked the Minister for Labour if he has satisfied himself with the protection given to employees who have been made awards under the Employment Appeals Tribunal, in respect of Protection of Employees (Employers Insolvency) Act, 1984; his views on whether the conditions involved in order to benefit from the insolvency fund are too costly and restrictive; and if he will make a statement on the matter.
I am satisfied with the protection given to employees in respect of eligible claims under the Protection of Employees (Employers' Insolvency) Act, 1984, in regard to awards made by the Employment Appeals Tribunal.
The insolvency payments scheme, operated under the 1984 Act, provides protection for the employees of an insolvant employer i.e. an employer who has been formally declared bankrupt or put into liquidation or receivership, in respect of certain wage related entitlements. These entitlements include minimum notice and unfair dismissal awards made by the Employment Appeals Tribunal together with arrears of wages and holiday pay, subject to certain limits and conditions.
In cases where employers are insolvent within the definition in section 1 (3) of the 1984 Act, no costs accrue to their employees in claiming their entitlements under the scheme. However, in cases where employer companies cease trading but are not formally insolvent under the definition in section 1 (3), those companies are not covered by the 1984 Act. In such circumstances, Employment Appeals Tribunal awards or other employee entitlements are not payable under the scheme. The employee's concerned may in those situations take proceedings to have the companies concerned declared insolvent so as to bring them within the scope of the 1984 Act, but, as such action would give rise to costs for the persons involved, it would be for themselves to decide whether or not to institute proceedings.
