Dáil Éireann Debate, Tuesday - 9 December 2014
204. Deputy Joe Higgins asked the Minister for Jobs, Enterprise and Innovation the recourse available for persons (details supplied) to have their successful claim for unpaid wages against their former employer enforced; and if he will make a statement on the matter. [46853/14]
View answerUnder the provisions of Section 8 of the Payment of Wages Act 1991 a Rights Commissioner’s decision may be enforced as if it were an order of the Circuit Court. A formal request for such an order may be filed in the County Registrar’s office by the person seeking the order. NERA has no powers of enforcement under the Act. The purpose of the insolvency payments scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act, 1984, 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. My colleague, An Tánaiste and Minister for Social Protection, Joan Burton, has responsibility for the administration of the payments from the insolvency payments scheme.
Where a person’s former employer was a limited company, the company must 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 as he or she has access to the company records and can certify that the amounts claimed are in order.
There are companies which cease trading without engaging in a formal winding-up process and in some such cases those employers may owe monies to their employees. Such employees are not eligible for payments under the insolvency payments scheme. I am advised by the Department of Social Protection that the company in this instance is not in liquidation or receivership and therefore the awards cannot be submitted for payment to the insolvency payments scheme.
I am informed that the Department of Social Protection is currently reviewing the position to establish what, if anything can be done to progress payments to individuals in these situations. The Department of Social Protection is not in a position to indicate when this review will be completed.
