Dáil Éireann Debate, Thursday - 19 May 2022
16. Deputy Bríd Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will clarify the progress made to date or planned in enacting legislation to protect workers in cases of mass redundancies including a recent case (details supplied); and if he will make a statement on the matter. [25208/22]
Amharc ar fhreagraFollowing extensive engagement with the social partners, the 'Plan for Action on Collective Redundancies following Insolvency' was published in June 2021. This sets out several commitments to safeguard further the rights of workers in these circumstances including:
1. amendments to company law and employment law,
2. establishing a new Employment Law Review Group, and
3. the provision of an accessible guidance document.
The Guidance Document was published in December 2021 and provides clear and accessible information in relation to the rights and remedies available to employees facing a collective redundancy situation following a company insolvency.
Work has commenced on the General Scheme of a Bill to amend the Protection of Employment Act 1977, in line with the changes set out in the “Plan for Action”. Once completed, it is intended to bring the General Scheme to Government before the summer recess. This will lead to improved employee consultation, amendments for temporary lay-off and access to social welfare, as well as better redress and enforcement.
Work has also commenced on the drafting of the Terms of Reference for the Employment Law Review Group and organising suitable membership. The immediate focus is to get the Group up and running, initially on a non-statutory basis, also before the summer recess.
Turning to Company Law:
Three recommendations were progressed in the Companies (Rescue Process for Small and Micro Companies) Act 2021, which was commenced in December 2021. These recommendations relate to:
- the liquidator’s power to defend proceedings before the Workplace Relations Commission and Labour Court.
- the liquidator or director’s obligation to make creditors aware of their right to form and participate in a Committee of Inspection, and
- the requirement for a Committee of Inspection, where appointed, to include at least one employee creditor member.
Further amendments were considered by the Company Law Review Group last year and it submitted its report in December 2021. The Group ultimately concluded that the incidence of abusive practices in corporate restructuring, while attracting significant attention, is in fact low. This conclusion is supported by the Office of Director of Corporate Enforcement which notes that its reviews of liquidations indicate that in over 90% of all liquidations, company directors had acted honestly and responsibly.
Notwithstanding this, the Group made eight recommendations for potential amendment to the Companies Act which are intended to further enhance the regulatory framework. The Report has been considered by officials from my Department in the context of the “Plan for Action”. My colleague, Minister Troy, has considered their analysis and proposals, and intends for proposed amendments reflecting the consequences of certain corporate liquidations and restructuring practices to be carried through a Companies (Miscellaneous Provisions) Bill.
