Dáil Éireann Debate, Tuesday - 26 November 2013
412. Deputy Richard Boyd Barrett asked the Minister for Social Protection her plans in terms of legislative reform to allow workers access to the State insolvency fund; and if she will make a statement on the matter. [50561/13]
View answerThe purpose of the insolvency payments scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act, 1984, which, in turn, derives from EU Council Directive 987/80, is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. These entitlements include wages, holiday pay, sick pay, payment in lieu of minimum notice due under the Minimum Notice & Terms of Employment Acts, 1973-2001, and certain pension contributions. Various other statutory awards made by the Employment Appeals Tribunal, Rights Commissioners, etc., are also covered by the scheme.
Payments under the scheme are made from the Social Insurance Fund and the Minister becomes a preferential creditor against the assets of an employer in respect of most amounts paid under the scheme. Where a person’s former employer was a limited company, the company should be in liquidation or receivership in order for the person to be eligible to claim under the insolvency payments scheme. In such circumstances, the liquidator or receiver becomes the relevant officer for submitting claims under the scheme as he or she has access to the company records and can certify that the amounts claimed are in order.
I am aware that there are some cases where employers have ceased trading without engaging in a formal winding-up process. In some such cases, the company may have closed owing certain payments or statutory awards to its former employees. I have asked my Department to review the position to establish what, if anything, can be done to progress payments to individuals where no liquidator or receiver has been appointed and this work is on-going.
