Dáil Éireann Debate, Thursday - 23 February 2012
119 Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation if he will set out the hierarchy of creditors in the event of an insolvency, examinership, liquidation or receivership, in particular where employees rank as relative to other creditors in the event of unpaid wages or holiday pay; and if he will make a statement on the matter. [10448/12]
Amharc ar fhreagraThe order of preferential payments in the liquidation of a company is set out at section 285 of the Companies Act 1963 as amended. Section 98 of that Act contains relevant provisions as to the position where a receiver is appointed under a floating charge. There are no specific company law payment provisions in an examinership. The examiner process is conducted under the supervision of the court.
The Protection of Employees (Employers' Insolvency) Act 1984 as amended provides for payment, out of the Social Insurance Fund, to employees of insolvent employers a limited portion [i.e. currently maximum is €600 per week for 8 weeks] of arrears of pay or moneys due as redress for failure to grant statutory rights and protections to the employees concerned. Both that Act and Fund are administered by the Minister for Social Protection.
The Bankruptcy Act 1988 has been amended to include among the priority debts which are, under section 81 of that Act, to be met in the distribution of the property of a bankrupt or arranging debtor, as the case may be, any moneys due as redress for failure to grant statutory rights and protections to the employees concerned. Responsibility for the administration of that Act rests with the Minister for Justice and Equality.
