Dáil Éireann Debate, Tuesday - 28 February 2017
407. Deputy Brendan Griffin asked the Minister for Social Protection if progress has been made on the review of eligibility for the insolvency payments scheme; and if he will make a statement on the matter. [9592/17]
View answerUnder the provisions of the Protection of Employees (Employers’ Insolvency) Act 1984, an employer company shall be regarded as being insolvent if the company is placed into receivership or a winding-up order has been made or a resolution for the voluntary liquidation of the company has been passed. The Act does not cover informal insolvency where employers cease trading without engaging in any formal wind-up process.
The Department is continuing to review the situation of informal insolvency. There are many difficult and complex company and employment law matters to be considered. The Department is considering legal advice on the matter and the possible impacts that any potential policy developments could have on existing legislation. In addressing this we must find a sensible and proportionate approach which does not have negative knock-on consequences.
The Department is consulting with a range of concerned bodies, including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners, in respect of this issue.
In addition, the Department continues to engage with the two reviews of employment and company law which were initiated by the Minister for Jobs, Enterprise and Innovation on foot of the Clery’s closure.
There are also a number of legal cases under consideration by the Courts at the moment, the outcome of which will have a bearing on this matter.
I trust this clarifies the matter for the Deputy.
