Dáil Éireann Debate, Tuesday - 1 December 2020
121. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment if a State body is investigating the issues related to the liquidation of a company (details supplied) such as the treatment of workers, the structures of the group of companies, the intragroup transactions and related accounting; and if he will make a statement on the matter. [39572/20]
View answerDebenhams Retail (Ireland) Limited is a court-supervised liquidation and subject to oversight of the High Court. This Court process remains ongoing and accordingly is sub judice.
Under section 624 of the Companies Act 2014, it is the statutory duty of a liquidator to administer the property of the company; this includes ascertaining the extent of the property and collecting, realising and distributing such property in accordance with law. In doing so there is a duty on the liquidator to report to the Court.
The Companies Act 2014 provides safeguards to ensure that a liquidation process complies with the relevant statutory requirements and provides provisions which may be utilised by liquidators or creditors (including employees) of an insolvent company in appropriate cases. For example:
- Section 631 provides a power for any creditor (including employees) of the company to apply to the court for a determination on any question arising in the winding up of a company.
- Safeguards also include section 608 regarding the power of the court to order the return of assets which have been improperly transferred and section 599 where a related company may be required to contribute to the debts of a company being wound up.
It remains necessary to wait for confirmation of the position from the liquidator and ultimately the conclusion of the High Court on the liquidation. Only then will a clearer picture emerge on matters arising and if any further action is required.
The liquidator of an insolvent company must report to the Office of the Director of Corporate Enforcement (ODCE) on its demise and must also apply to the High Court for the restriction of each of the directors of the company, unless they are relieved of that obligation by the ODCE.
All companies, regardless of size, are required to comply with the extensive provisions of the Companies Act 2014. Alongside company law, companies must comply with other legal requirements such as the treatment of employees and creditors and disclosure to Revenue.
The ODCE will examine all complaints it receives about suspected breaches of the Companies Act by a company or one of its directors/agents. Where a breach of company law has been clearly established, the ODCE will take action as appropriate.
Ireland has a comprehensive body of employment legislation that protects all employees who are legally employed on a contract of service basis. Where an individual believes they are being deprived of employment rights applicable to employees they may refer a complaint to the Workplace Relations Commission (WRC) where the matter can be dealt with by way of mediation or adjudication leading to a decision that is enforceable through the District Court. WRC inspectors can also be asked to investigate certain breaches.
The Labour Court deals with appeals of decisions made by WRC adjudication officers under employment rights legislation as the “court of last resort” in industrial relations disputes.
In so far as any additional terms over and above statutory redundancy payments may apply, this is a matter for negotiation between the parties. The State’s dispute resolution bodies, independent in their functions, are available to assist with industrial relations disputes. The current chair of the Labour Court, Kevin Foley, has agreed to mediate in the dispute involving the company and its employees. While the resolution of the dispute ultimately rests with the parties, the Government welcomes the Labour Court and Mr. Foley’s role in mediation of this matter and hopes that a resolution which satisfies all sides can be found.
