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Redundancy Payments

Dáil Éireann Debate, Wednesday - 13 January 2021

Wednesday, 13 January 2021

Questions (31)

Willie O'Dea

Question:

31. Deputy Willie O'Dea asked the Tánaiste and Minister for Enterprise, Trade and Employment the actions that will be taken for persons who are entitled to enhanced redundancy; when he plans intend to implement the Duffy Cahill report; if the legislation will cover the Irish workers of a group (details supplied); his plans to change company law to improve the position of workers in the list of creditors in the event of liquidation in circumstances in which a collective redundancy has been agreed and applied previously; and if he will make a statement on the matter. [45056/20]

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Written answers

A notification of proposed collective redundancies at Arcadia Group Multiples (Ireland) Limited was received in my office on the 18th of December.  It is the responsibility of the employer in the first instance to pay statutory redundancy.  However, the Social Insurance Fund provides a safety net for employees in situations where the employer cannot pay due to financial difficulties or insolvency. Negotiations on enhanced redundancy are a voluntary matter between the liquidator and former employees.

In relation to the list of creditors in a liquidation, preferential payments are provided for under section 621 of the Companies Act.  A preferential creditor is one whose debts are deemed to be more important than the debts of another creditor.  The current law is a result of careful balancing of the various rights of creditors, including employees. In terms of wage arrears, outstanding holiday pay, and pension scheme contributions, employees are already considered preferred creditors.

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.

The Company Law Review Group is undertaking a review of this commitment as it relates to company law and I understand that report is nearing completion. I look forward to receiving it and to publishing it on the CLRG's website shortly thereafter.

In addition, Ministers of State Damien English and Robert Troy jointly met with employer and union representative bodies on the 4th of November to begin a discussion on the various legislative provisions that deal with redundancy and insolvency from both an employment law and a company law  perspective. I understand that consultations and discussions are ongoing.

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