asked the Minister for Social Welfare the position of employees of a firm (name supplied) whose social welfare contributions, although deducted, have not been paid for approximately eighteen months past; whether these employees will be deemed eligible for benefit and credited with the contributions made; and if it is proposed to take immediate action in this matter.
Ceisteanna—Questions. Oral Answers. - Social Welfare Contributions.
29.
According to the records of my Department the insurance and redundancy cards of some 29 employees of the firm in question have not been stamped since May, 1968, although the employer has made deductions from wages for this purpose. In one case, a maternity allowance claim, benefit had to be disallowed owing to the employer's failure to stamp the cards. In such circumstances the employee is entitled to recover from the employer as a simple contract debt in any court of competent jurisdiction a sum equal to the amount of the benefit lost. If the employee so requests I will take legal action in her name and on her behalf.
There is no statutory power to enable these employees to be deemed eligible for benefit. My Department is, however, at present examining the general question of loss of benefit by insured persons due to failure of employers to comply with the requirements of the Social Welfare Acts with a view to effecting such improvements in the position as may be feasible.
Would the Minister consider introducing the same system as that which applies in the case of occupational injuries? In many cases, if the employer has gone broke, there is no hope in the world of anybody collecting.
That is what I am considering
Good.
Would the Minister say whether or not these similar employees would have first claim in a case such as mentioned by Deputy Tully? Where a firm went bankrupt and there was a receiver would the first claim be in respect of social insurance stamps?
I am afraid that is not a matter that I could decide. If a firm goes into bankruptcy the Minister for Social Welfare could not decide what would be the first claim on the assets.
As far as I can remember, workmen's compensation was a first charge by law on a firm that went bankrupt.
It would take legislation.