Dáil Éireann Debate, Tuesday - 8 October 2013
285. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation his plans to bring in legislation to deal with the gap in the law (details supplied); and if he will make a statement on the matter. [42106/13]
View answerThere are two significant issues that arise in this case. Firstly the matter of seeking to enforce the payment of an award made by one of the employment rights bodies and secondly on this not succeeding, the potential to have recourse to the Insolvency Payments Scheme for payment of that award.
I am fully aware of the difficulties that can be experienced by individuals who have had awards made in their favour by employment rights bodies, including the Employment Appeals Tribunal (EAT), in enforcing those awards where employers fail or are not in a position to pay such awards.
Under the current system of enforcement, the holder of an EAT award or their trade union may seek to enforce the award themselves through the Circuit Court or they may seek the assistance of the Minister to have this process carried out on their behalf. This involves the use of the Enforcement Services Unit of the National Employment Rights Authority (NERA) to have such awards enforced if appropriate through the civil courts.
I acknowledge that the system of enforcement of awards that has developed over the years has become complex and in some cases involves very long delays. In this context and in relation to industrial relations and employment rights generally I have initiated a root-and-branch reform with the objective of establishing a world-class Workplace Relations Service.
I believe that for a workplace relations system to have credibility it must be supported by proportionate, effective and efficient compliance and enforcement measures. The current system of enforcement of employment rights awards is cumbersome, expensive and not fit for purpose. For this reason, I am proposing to make provision in the Workplace Relations Bill for a range of enhanced compliance measures, including the use of Compliance Notices, Fixed Charge Notices and a new mechanism for enforcing awards of the WRC Adjudicators and Labour Court Determinations. These measures will provide for more proportionate, efficient and effective enforcement of employment law.
Under the new reformed system, if the decision of a WRC adjudication officer (at first instance) or a determination of the Labour Court (on appeal) remains unimplemented, the complainant may apply, in the former case to the Workplace Relations Commission or, in the latter case, to the Labour Court, for a binding and enforceable Determination Order directing the respondent to comply within a specified period. A Determination Order made by the WRC or Labour Court may be enforced by either civil proceedings or criminal prosecution, or both.
I am satisfied that the measures which I propose to introduce will provide successful complainants with an accessible and inexpensive means whereby respondents can be compelled to honour the award of the WRC Adjudication Service or of the Labour Court, as the case may be.
Where an employer is legally insolvent (liquidation, receivership, bankruptcy etc.) the employee may be entitled to seek redress from the State under the Insolvency Payments Scheme which is operated by my colleague, the Minister for Social Protection. I am aware that there are some cases including the present case, where employers have ceased trading without engaging in a formal insolvency or winding-up process and where the company may have closed owing certain payments or statutory awards to its former employees. Whilst it will not be possible to address the issue of so-called 'informal insolvency' through the workplace relations reforms which I have commenced, as it raises issues concerning insolvency law and the operation of the Insolvency Payments Scheme, I am informed by the Minister for Social Protection that the legislative position with regard to these types of situations is currently being reviewed by her Department with a view to establishing what, if anything, can be done to progress payments to individuals where no liquidator or receiver has been appointed.
Any queries concerning such issues under the Insolvency Payments Scheme including policy, are fully within the remit of my colleague the Minister for Social Protection Joan Burton T.D and should be made directly to her.
