Written Answers. - Company Law.

Donal Carey


168 Mr. D. Carey asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will consider amending company law in order to recognise service in a company that goes into voluntary liquidation. [27849/01]

Where a company goes into liquidation, employees are entitled to statutory redundancy payments that are related to the number of years' service by the employee. There is no provision whereby workers in companies that go into liquidation would receive a higher level of statutory redundancy than workers let go in companies that continue to trade.

The Companies Acts contain provisions relating to the ranking of a company's creditors. This provides for certain creditors' claims, including employee wages, to be treated in a preferential manner over other creditors up to a certain limit. It would not, however, be appropriate to give employees a multiple of their actual entitlement as creditor.