Emer Higgins (Dublin Mid West, Fine Gael) | Oireachtas source

I thank the Leas Cathaoirleach for his kind remarks. I am pleased to have the opportunity to present this Bill for the consideration of the House following its recent successful passage through the Dáil, led by my predecessor, the Minister of State, Deputy Richmond. The Bill will further enhance the protection of employees in a collective redundancy in a way that does not unduly impede enterprise in the conduct of its business.

First, I will provide some background to the Bill and put it in some context. It is being brought forward in response to the commitment in the programme for Government to review whether the legal provisions surrounding collective redundancies and the liquidation of companies effectively protects workers' rights. In 2021, following extensive and constructive engagement with social partners, the plan of action on collective redundancies following insolvency was published. This plan of action, which was broadly welcomed by the social partners, principally addressed matters relating to employment rights and company law.To date, we have delivered various actions that further supplement the already robust legislative protections and safeguards afforded to employees involved in corporate insolvency. This important Bill will deliver on the plan's key outstanding legislative commitments.

I will now outline the main provisions of the Bill, which consists of 27 sections, divided into four Parts. An explanatory memorandum has been published and provides a summary of these provisions.

Part 1 of the Bill provides for preliminary and general provisions setting out the Short Title of the Bill, its commencement and necessary definitions.

Part 2 provides for certain amendments to the Protection of Employment Act 1977. This governs collective redundancy rules. Part 2 of the Bill will further protect employees affected by collective redundancies. The Bill ensures that all collective redundancies are subject to a 30-day notification period before they take effect, including where the employer is insolvent. The Bill allows employees to seek redress of up to four weeks' remuneration from the Workplace Relations Commission if their employer makes them redundant before the 30-day notification period finishes. This redress is in addition to other forms of redress under the 1977 Act if an employer fails to consult employees' representatives or to provide them with information. It should be noted that where an employer makes an employee redundant before the end of the 30-day notification period, the employee may be entitled to redress under employment law such as the Minimum Notice and Terms of Employment Act 1973, as amended. This new form of redress is in addition to and not in substitution for other redress provisions. The Bill also provides that where a liquidator is managing the collective redundancy process in an insolvency situation, they must fulfil the employer's obligations. Where they fail to comply with those duties, the WRC may prosecute them. Finally, in respect of proposed collective redundancies, the Bill will streamline the process for employers by allowing them to submit notifications to the Minister by electronic means.

Part 3 of the Bill provides for the establishment of the employment law review group, ELRG, on a statutory basis. The ELRG will be a significantly valuable resource to the Department, allowing for an ongoing assessment of employment and redundancy law to ensure that these laws continue to be fit for purpose. The ELRG will comprise members with expertise and an interest in the development of employment and redundancy law. It will include members from the legal, accountancy and insolvency professions; worker and employer representatives and regulators; and ministerial nominees.

Part 4 of the Bill provides for an amendment to the Companies Act 2014 which sets down a framework within which directors and companies are expected to operate. The 2014 Act provides for separate corporate legal personality and limited liability which is designed to encourage and to foster enterprise by permitting individuals to engage in entrepreneurial activity while limiting personal exposure to financial loss in the event of commercial failure. The 2014 Act demands that, in return for the privilege of limited liability, directors act in good faith and abide by the requirements of governance, transparency and commercial probity. It is important to remember that most company directors want to do the right thing and do their best to act accordingly. It is important also to note that in 2021 the then Office of the Director of Corporate Enforcement reported that its reviews of liquidations showed that in over 90% of all liquidations, directors acted honestly and responsibly. Of course, however, in the event of non-compliance, remedies and accountability are important.

To that end, the 2014 Act has several provisions that can be utilised by creditors to set aside transactions which have been entered by companies and which have the effect of transferring assets or giving an advantage to certain creditors. It is these provisions which the Bill intends to enhance access to. It raises the bar for the permissibility of transferring assets in the period prior to insolvency and lowers the threshold required by the court to order a related company to contribute to the debts of the company being wound up. These amendments were sought by ICTU and recommended by the Company Law Review Group, a statutory advisory body on company law.

Finally, the Bill will amend the 2014 Act allowing workers as creditors to have greater access to information on liquidations. These amendments are reflective not just of the CLRG's March 2021 report on the provision of information to workers as creditors but also of ICTU's minority report.

Delivering this Bill here is reflective of the Government's continued commitment to supporting both businesses and employees, ensuring continual review and consideration of the careful balance to be struck between the respective rights of companies and creditors. I fully appreciate the difficulties inherent in trying to strike that delicate balance but I believe the balance struck in the Bill is fair for everyone. I thank the members of the Joint Committee on Enterprise, Trade and Employment for their consideration of the Bill. I also thank Deputies for their constructive and pragmatic engagement when this was swiftly passed through the the Dáil.

I look forward to hearing Senators' views and working with them to further progress this important legislation. I am very proud to commend this Bill to the House.