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Redundancy Payments

Dáil Éireann Debate, Thursday - 7 April 2022

Thursday, 7 April 2022

Questions (25, 67, 74)

Alan Dillon

Question:

25. Deputy Alan Dillon asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the receivership process with a company (details supplied); the efforts that have been undertaken to protect payments owed to employees; and if he will make a statement on the matter. [18746/22]

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Louise O'Reilly

Question:

67. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if his Department has engaged with the employees and subcontractors of a company (details supplied) regarding the company going into receivership. [18625/22]

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Rose Conway-Walsh

Question:

74. Deputy Rose Conway-Walsh asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps his Department has taken to protect employees, subcontractors and suppliers effected a company (details supplied) entering receivership; and if he will make a statement on the matter. [18680/22]

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Written answers

I propose to take Questions Nos. 25, 67 and 74 together.

My officials have been monitoring the situation carefully and have been working closely with the Department of Social Protection in order to assist affected employees during this difficult time and we will continue to be as responsive as we can to the issues as they unfold.

During this period of uncertainty, I am glad to report that employees have received assurances from the Receiver regarding their redundancy entitlements and access to income supports.

Following joint engagement with my Department and the Department of Social Protection, the Receiver has confirmed to employees that there is no statutory restriction on them taking up additional employment during a statutory redundancy consultation period, in circumstances where they are not expected to attend the workplace. Provided that they do not resign from their current employment, there should be no obstacle to retaining their statutory redundancy entitlements.

Officials of the Department of Social Protection have already met with both the Receiver and employee representatives to provide information and assurances regarding measures taken to accept online applications for income support as quickly as possible. My Government colleague, Heather Humphreys TD, Minister for Social Protection, has encouraged individuals now seeking jobseekers payments to apply on line so that her Department can process their claims as quickly as possible.

The Department of Social Protection will provide all relevant supports through the local Intreo Offices and will proactively help employees to access opportunities available for employment or appropriate training and development.

Enterprise Ireland has been in regular contact with the company and officials have had discussions with the Acting CEO to investigate whether any Roadbridge contracts can be fulfilled by other operators in the market. This, however, will be challenging given the current economic climate and inflationary pressures.

Enterprise Ireland has met with some employees in relation to advice about starting their own businesses. Following initial assessment, these calls have recommended contact with the Local Employment Office, as they continue to formulate their plans and projections.

Some competitors of Roadbridge have been in contact with Enterprise Ireland in relation to hiring former employees as these staff are considered to be highly qualified and have excellent training in the industry. In all cases, positive directions were given. Enterprise Ireland understands that employment offers have been made, and will continue to be made, across all regions of Roadbridge’s operations.

The Receiver has given an undertaking to continue discussions with Enterprise Ireland to discuss how Enterprise Ireland can further support employees, sub-contractors and sub-suppliers impacted by the receivership.

It should be noted however that Receivership arises from a private contractual relationship between a lender and a creditor and as such I cannot intervene in this matter. The Companies Act 2014 confers statutory powers on receivers appointed to preserve, manage or sell the property of a company. The Act also provides that an application may be made to court for directions concerning the performance by the receiver of their functions. Breach of a receiver’s statutory duties may result in the receiver being held personally liable for any loss incurred. In addition, misconduct by receivers must be reported to the Director of Corporate Enforcement.

The Government is committed to rebuilding a strong economy that provides stability for workers and helping those who have lost their jobs to secure alternative employment. My Department will continue to liaise with all stakeholders in order to fully determine the scale of the potential adverse impacts on all those concerned.

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