Dáil Éireann debate -
Thursday, 5 Dec 2002

Vol. 558 No. 6

Written Answers. - Damages Awards.

Seán Ryan

Question:

26 Mr. S. Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment the action which has been taken by her Department in respect of the complaint submitted on 20 August 2002 to the Labour Inspectorate in respect of a company (details supplied), three of whose employees were awarded damages of ?50,000 in the High Court on 29 October 2002; the assistance which is available to workers who may receive such awards from companies that are declared insolvent; and if she will make a statement on the matter. [24879/02]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Fahey)

The Labour Inspectorate is actively pursuing this case, at present. Inspectors have interviewed the employer and examined records in accordance with the appropriate employment legislation. The inspectorate is also seeking statements from several persons concerned and when these matters have been finalised a decision will be made as to the appropriate next steps.

The High Court award in this case arose from a civil action by way of a plenary summons. In such civil cases solicitors for the plaintiff may execute the order of the High Court by way of sending in the sheriff. Alternatively, the resulting award may be pursued by registering the judgment as a mortgage against the property of the company and later enforce that by way of separate proceedings in the High Court. The judgment is enforced under Order 42 of the Superior Courts.

In the event of any company being declared insolvent in accordance with the requirements of the Protection of Employees (Employers' Insolvency) Acts, 1984-2001 which are administered by my Department, these Acts provide for the payment of certain wage-related entitlements, subject to certain limits and conditions, including time limits. These debts include arrears of wages-salaries, sick pay, holiday pay, minimum notice, etc. They are subject to a maximum of eight weeks and the statutory ceiling of €507.90 per week and would have to have arisen in the 18 months prior to that company being formally declared insolvent.

In the case of the company in question my Department has no record of it having been formally declared insolvent and therefore, at this stage, the former employees would not qualify for payment under the insolvency payments scheme.