asked the Minister for Labour if his attention has been drawn to the situation whereby no guarantee fund exists from which arrears of wages under Employment Regulation Orders, unpaid holiday pay, awards of the Employment Appeals Tribunal, and awards of the Tribunal under the Unfair Dismissals Act, may be paid where employers become insolvent or are in liquidation, if he will introduce legislative measures to correct the position; and the present position regarding the proposed EEC Directive in relation to insolvent employers and the measures proposed by the Government in relation to this directive.
Written Answers. - Employment Regulation Orders.
108.
I am aware that there is no guarantee fund at present from which arrears of wages, holiday pay and the tribunal awards referred to by the Deputy can be paid, except to the extent that the redundancy fund is available to meet workers entitlements to redundancy payments.
The text of the proposed EEC Directive on the approximation of the laws of the member states relating to the protection of employees in the event of the insolvency of their employer, is being brought to finality by the Council of the European Communities at present. It is hoped that the proposed directive will be formally adopted by the Council before the end of the year. It will be for implementation within a period of 36 months from the date of its notification to the member states.
The proposed directive will oblige member states to set up institutions to satisfy the unfulfilled claims of employees relating to pay, arising because of the insolvency of their employer. There will be provision for limiting the liability of the new institution.
Incidentally, the directive does not appear to cover all the types of claims for payment listed in the Deputy's Question. Legislation will be required to implement the EEC directive and this will be introduced in due course.