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Dáil Éireann díospóireacht -
Thursday, 17 Dec 1981

Vol. 331 No. 12

Written Answers. - County Offaly Firm Closure.

567.

asked the Minister for Labour when the staff of a firm (details supplied) in County Offaly which went into voluntary liquidation in December, 1979 or January, 1980 will be paid the wages, arrears of wages, holiday pay and life insurance benefits due to them.

In any case of which the Department is aware, wages were paid. Minimum notice claims were made to the Employment Appeals Tribunal by some of the employees.

The Minimum Notice and Terms of Employment Act provides, that any compensation awarded shall be treated as a preferential debt in a situation of liquidation. While a similar provision is not included in the Holidays (Employees) Act, it is open to employees to request the liquidator that any sum due be treated as a priority debt.

In regard to life insurance benefits perhaps what the Deputy has in mind is benefits under an occupational pensions scheme. For information about this employees should keep in touch with the liquidator.

I understand that the winding-up process of this liquidation will take some time and I advise the employees to keep in touch with the liquidator for information on development and prospects of payment.

I should explain that there are provisions in the Redundancy Payments Acts for payment to employees, direct from the redundancy fund, of moneys due under those Acts, in a case where the employer pleads inability to pay. In the case of this firm all the money due to the employees under the Redundancy Payments Acts have been paid from the fund. There are no such funds provided for under the Minimum Notice and Terms of Employment Act, 1973 or the Holidays (Employees) Act, 1973.

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