Debenhams is a court-supervised liquidation, subject to oversight of the High Court and accordingly is sub judice. Under the Companies Act 2014, I have no power to intervene in a court-supervised liquidation.
The Duffy-Cahill report found in overall terms that “the provisions of the Companies Act 2014 that are already available do not appear to be in need of amendment, but more in need of use.” A range of factors will be involved for liquidators or creditors in deciding whether to pursue litigation based on the provisions of the Companies Act 2014. Such statutory provisions and associated civil and criminal penalties also provide an important deterrent effect in terms of companies complying with their obligations under the Companies Act 2014.
In 2017, in parallel with the Duffy-Cahill report, the Company Law Review Group undertook a root and branch review of the Companies Act to address concerns raised in respect of the protection of employees and unsecured creditors. The report which emanated from this review by the Company Law Review Group, also generally found that the current provisions of the Companies Act 2014 provide a comprehensive framework which strikes a balance between the interests of members of a company and other stakeholders, including employees.
The Protection of Employment Act 1977 imposes a number of obligations on employers who are proposing collective redundancies, including official notification to the relevant Minister and a 30 day consultation period to allow employee representatives adequate opportunity to consider the employer’s proposals and to make constructive proposals in response. While responsibility for this legislation currently rests with my colleague the Minister for Employment Affairs and Social Protection, it will shortly transfer to my Department under a wider transfer of functions Order.
The Workplace Relations Commission (WRC) is an office under the aegis of my Department which is available to any interested parties who may require it. As part of its functions the WRC provides information relating to employment entitlements and obligations, equality and industrial relations matters.
It is my understanding that the Protection of Employees (Collective Redundancies) Bill 2017 lapsed with the dissolution of the Dáil and Seanad on the 14th of January 2020. Pursuant to the Standing Orders of both Houses of the Oireachtas it will be for the Oireachtas to restore the Bill to the Order Paper.
The Government has committed in the Programme for Government to review whether the current legal provisions surrounding collective redundancies and the liquidation of companies effectively protect the rights of workers, and I intend to ensure that this is progressed in a timely manner.
