Tuesday, 17 September 2019

Questions (647)

Willie O'Dea


647. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the reason a person (details supplied) did not receive pay in lieu of notice when funding was withdrawn from the community employment scheme effectively rendering it closed; and if she will make a statement on the matter. [37363/19]

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Written answers (Question to Employment)

Community Employment (CE) schemes are typically sponsored by voluntary and community organisations wishing to benefit the local community.  As the employers, these sponsoring organisations contract with my Department, on an annual basis, to provide job seekers with good quality work experience and training qualifications to support their progression into employment. 

CE supervisors are employees of these organisations, which are private companies. They are not employees of my Department or public servants.  The issue of pay in lieu of notice is a matter between the person concerned and their employer.

The purpose of the Insolvency Payments Scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act 1984, as amended, 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 and certain pension contributions.  Various other statutory awards made by the Workplace Relations Commission, 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 entitlements under the Insolvency Payments Scheme.

I am advised that in this instance, the employer does not satisfy the current requirements to enable payment to be made under the Insolvency Payments Scheme.  

I trust this clarifies the matter for the Deputy.