Joint Committee on Enterprise, Trade and Employment makes nine recommendations to improve proposed Plan of Action on Collective Redundancies following Insolvency Bill 2023

Committee Cathaoirleach Maurice Quinlivan TD said: “The Committee has sought to scrutinise the proposed legislation, providing recommendations on areas where it believes changes or amendments are warranted. The Committee welcomes the introduction of the General Scheme, and the time and consideration the Department has provided with this Bill.

“The Committee made a number of recommendations aimed at improving this important piece of legislation. When this legislation proceeds, the Joint Committee requests that the recommendations and key issues raised in this report and identified during the pre-legislative scrutiny process are taken on board by the Government and implemented.”

Minister of State for Business, Employment and Retail Neale Richmond TD and Minister of State for Trade Promotion, Digital and Company Regulation Dara Calleary TD jointly referred the General Scheme of the Plan of Action on Collective Redundancies following Insolvency Bill 2023 to the Joint Committee on Enterprise, Trade and Employment on 16 May with a request to commence pre-legislative scrutiny at the Committee’s earliest convenience.

The General Scheme of the Plan of Action on Collective Redundancies following Insolvency Bill 2023 aims to deliver on the Government’s action plan of 2021 and provides for several measures, including amendments to employment law and company law legislation and the setting up of an employment law review group. The General Scheme also provides for discrete but important amendments to the Companies Act 2014 that are material to the protection of workers as creditors.

In its report, the Committee welcomes the inclusion of recommendations from the Duffy-Cahill report in this General Scheme and the removal of the exemption outlined in section 14(2) of the Protection of Employment Act 1977, which applies to collective redundancies arising from the winding up of a company or bankruptcy are exempt from this criminal liability. The proposed legislation should provide that the directors or other persons in control of a company are also held responsible for any contravention, the Committee said.

The reports also recommends:

• The protection of apprentices, trainees and temporary workers for the purposes of this legislation;
• Including a provision that provides where a consultation period has commenced, it must not be interrupted by the appointment of a liquidator or receiver;
• The provisions of Head 16 be expanded to include the compulsory notification to Trade Union members and all other employees;
• A comprehensive information campaign is undertaken to provide awareness to the public who may not be aware of their rights in redundancy situations;
• The lowering of the bar or test in the consideration of “related companies” as it will provide discretion to the court to have regard to additional factors when making a decision;
• Employees subject to a collective bargaining agreement and other employees in redundancy situations be given preferential creditor status.

The Committee welcomes the substantial fines under Section 14 and recommends that the proposed legislation provides for further supports to employees unfairly dismissed where sections 9, 10 or 14 are contravened.

Deputy Quinlivan said: “These provisions, when enacted, will further improve access to information for workers as creditors and the anti-transactional avoidance mechanisms which could increase the assets available for the creditors, and further enhance the protection of employees in a collective redundancy following insolvency in a balanced manner that does not unduly impede enterprises in the conduct of their business.

“The Committee welcomes the establishment of a statutory Employment Law Review Group. The Employment Law Review Group will be a significantly valuable resource, allowing for an ongoing assessment of employment and redundancy law to ensure it is fit for purpose, comprising members with both expertise and interest in the area.

“The Joint Committee look forward to further engagement on the Bill and I hope that when enacted, it will provide important and significant reform. I must also thank Members of the Committee for their collaborative work in agreeing this report.”

The report Pre-Legislative Scrutiny of the General Scheme of the Plan of Action on Collective Redundancies following Insolvency Bill 2023 is available on the Oireachtas website.

The Joint Committee on Enterprise, Trade and Employment has 14 Members, nine from the Dáil and five from the Seanad.