Dáil Éireann Debate, Wednesday - 21 April 2021
203. Deputy Brendan Griffin asked the Tánaiste and Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 486 of 7 July 2020, the status of the long-awaited review of the eligibility for the insolvency payment scheme; and if he will make a statement on the matter. [20296/21]
View answerThe purpose of the insolvency payments scheme is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. The scheme operates under the Protection of Employees (Employers’ Insolvency) Act 1984, which derives from EU Directive 2008/94.
Responsibility for this legislation transferred to the Department of Enterprise, Trade & Employment from the Department of Social Protection in October 2020.
The 1984 Act does not provide for situations where an employer ceases to trade without engaging in any formal wind-up process. In such cases, referred to as ‘informal insolvency’, former employees may have monies owed to them without having a legal mechanism to claim same from the Social Insurance Fund.
In December 2018, the Supreme Court found that Ireland must provide a mechanism through which a competent authority can determine that a state of insolvency arises, without requiring a formal wind-up process, and that monies due to the employee can be claimed by them from the Social Insurance Fund.
As has been previously outlined to you, the judgment and its ramifications are complex. Officials are continuing to work with legal counsel and the Attorney General’s Office to identify potential solutions and address the issues involved and I will keep you informed on any further updates on this matter.
It is important to find a solution that provides employees with the greatest level of protection while also safeguarding the Social Insurance Fund.
