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Insolvency Payments Scheme Eligibility

Dáil Éireann Debate, Tuesday - 17 January 2017

Tuesday, 17 January 2017

Ceisteanna (557)

Mick Barry

Ceist:

557. Deputy Mick Barry asked the Minister for Social Protection if payment from the insolvency fund run by his Department can issue to a person (details supplied); and if he will make a statement on the matter. [41413/16]

Amharc ar fhreagra

Freagraí scríofa

The purpose of the insolvency payments scheme is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. The scheme operates under the Protection of Employees (Employers’ Insolvency) Act 1984, which, in turn, derives from EU Council Directive 987/80.

The Act provides that where a person’s former employer is a limited company, the company must be in liquidation or receivership in order for the person to be eligible to claim under the insolvency payments scheme. In such circumstances, the liquidator or receiver becomes the relevant officer for submitting claims, as he or she has access to the company records and can certify that the amounts claimed are in order.

The scheme covers entitlements such as wages, holiday pay, sick pay, payment in lieu of minimum notice, and various statutory awards made by the Employment Appeals Tribunal or Workplace Relations Commission.

As the limited company referred to above never went into liquidation or receivership, and hence no liquidator or receiver was appointed, outstanding awards made to employees of this company cannot be paid under the scheme.

I trust this clarifies the matter for the Deputy.

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