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Insolvency Payments Scheme Payments

Dáil Éireann Debate, Tuesday - 9 December 2014

Tuesday, 9 December 2014

Questions (205)

Sean Fleming

Question:

205. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation his views on introducing a mechanism whereby persons due money under the Payment of Wages Act 1991 and the payment is not forthcoming from the former employer, payments due under this act can be paid in line in a similar fashion as to when the State pays the statutory redundancy to a company that pleads inability to pay; and if he will make a statement on the matter. [46925/14]

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Written answers

The Payment of Wages Act, provides that an employee can pursue a claim in respect of any particular unlawful deduction or payment before the courts, or before a Rights Commissioner, but not before both. If the employee chooses to pursue their claim before a Rights Commissioner, the employee may appeal the Rights Commissioner decision to the Employment Appeals Tribunal (EAT), with the possibility of appealing the determination of the EAT to the High Court on a point of law. Under the provisions of section 8 of the Payment of Wages Act 1991 a Rights Commissioner’s decision on a determination of the EAT 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.

Work which I am currently undertaking on the reform of the State’s employment rights and industrial relations structures is at an advanced stage. Provision has been made in the Workplace Relations Bill 2014 for a range of enhanced compliance measures, including the use of Compliance Notices and Fixed Payment Notices. The Bill also makes provision for the introduction of a more effective and streamlined system for the enforcement of awards from WRC Adjudicators and/or the Labour Court under employment rights legislation via the District Court. I am satisfied that these new compliance and enforcement measures will provide for more proportionate, efficient and effective enforcement of employment law.

As the Deputy is aware, my colleague, An Tánaiste and Minister for Social Protection, Joan Burton, has responsibility for the Redundancy Payments Acts 1967-2014 and the Protection of Employees (Employers’ Insolvency) Acts. The latter deals with situations where the employer is insolvent. I am informed that the Tánaiste has no plan at present to consider extending the insolvency payment scheme to cover payments due by employers who continue to trade.

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