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Employment Rights

Dáil Éireann Debate, Wednesday - 29 July 2020

Wednesday, 29 July 2020

Ceisteanna (24)

Mick Barry

Ceist:

24. Deputy Mick Barry asked the Minister for Employment Affairs and Social Protection her views on employees of a company (details supplied) seeking an enhanced redundancy package; if legislation and additional measures will be introduced giving effect to the Duffy Cahill report that will better protect the interests of workers in liquidation scenarios; and if she will make a statement on the matter. [15769/20]

Amharc ar fhreagra

Freagraí scríofa

Firstly, I would like to say that my thoughts are with all Debenhams workers who are dealing with job losses at this difficult time.  I want to assure everybody that my Department is assisting and will continue to assist the affected workers through its Intreo service in whatever way we can in terms of income supports and job-seeking over the coming weeks and months.  Indeed over the past number of weeks officials from my Department have engaged with both officials from Mandate and with the Human Resource management team in Debenhams to ensure that all workers have received their due entitlements from my Department.  Furthermore, the redundancy and insolvency section of my Department has already engaged with the liquidators appointed to Debenhams and is continuing to work with them to ensure that all claims in respect of employees are dealt with expeditiously.

While I as Minister don’t have the power to ensure that Debenhams pays an enhanced redundancy package to its employees, an employer is obliged to pay the statutory redundancy entitlement as provided for in the Redundancy Payments Act 1967 and that is all that can be legally enforced against an employer. 

As the company has been declared insolvent, the Department can provide a safety net for employees and the liquidator can submit claims for statutory redundancy and other wage related entitlements for payment from the Social Insurance Fund.  We will ensure that the statutory redundancy entitlement which is laid out in legislation will be paid.

The Duffy-Cahill Report, which was commissioned by the Government in the aftermath of the Clery’s closure, highlighted how the issues raised by that event and the subsequent legal cases are highly complex. 

There is a commitment in the Programme for Government to review the Companies Acts with a view to addressing the practice of trading entities splitting their operations between trading and property, with the result that the trading business goes into insolvency and the assets are taken out of the original business.

Company law matters are the responsibility of the Tánaiste and Minister for Enterprise, Trade and Employment.

I trust this clarifies the matter for the Deputy.

Questions Nos. 25 to 31, inclusive, answered orally.
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