Dáil Éireann Debate, Wednesday - 17 December 2014
66. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the new compliance and enforcement measures he proposes to introduce to provide a more proportionate, efficient and effective enforcement of employment law; if this will include payments due under the Payment of Wages Act 1991 where an employer ceases operating but does not go into liquidation; and if he will make a statement on the matter. [48648/14]
View answerWork 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, including the Payment of Wages Act 1991. As the Deputy is aware, my colleague, An Tánaiste and Minister for Social Protection, Joan Burton, has responsibility for the Insolvency Payments Scheme, which operates under the Protection of Employees (Employers’ Insolvency) Acts. The purpose of the scheme 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.
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 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.
