Seanad debates

Wednesday, 24 April 2024

Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Bill 2023: Second Stage

 

10:30 am

Photo of Ollie CroweOllie Crowe (Fianna Fail) | Oireachtas source

I welcome the Minister of State to the House and congratulate her on her ministerial appointment. I wish her well.

As she noted, the Bill has been introduced in response to the programme for Government commitment to review whether the legal provisions surrounding collective redundancies and the liquidation of companies effectively protect the rights of workers. Following that commitment, there was extensive consultation with social partners, which resulted in a plan of action on collective redundancies following insolvency. It was published in 2021. The plan of action was thorough and wide-ranging and included commitments to introduce amendments to a range of legislative measures in areas of employment law and company law dealing with matters related to collective redundancies following company insolvency; to develop a guidance document to provide clear and accessible information on the rights and remedies available to employees facing collective redundancy following company insolvency; and to establish an independent employment law review group comprising expert stakeholders to help to shape the formulation of policy and legislation to ensure Ireland’s employment law framework remains fit for purpose and adapts to the evolving contemporary workplace. Following the passage of this Bill, all the commitments made in the plan of action will have been met. That has to be acknowledged as fine work by the Government and, much more important, a very positive step for workers.

As Members and the Minister of State will be aware, redundancies put enormous strain on affected workers. Unfortunately, we have seen this in recent years, including in the Debenhams case. I am aware from having spoken to workers in Galway city of how much stress was caused for them and how the case affected their mental health and, indeed, that of family members. Cases such as those of Debenhams and Clerys placed enormous stress on staff and workers. While we can never protect against the closure of businesses in an opening and functioning economy, we can ensure workers have appropriate protection in such cases. The Bill will provide that.

The Bill will further strengthen the rights of workers, such as those mentioned, in future cases, which is to be welcomed. It will ensure greater transparency for workers in the redundancy process and improve the quality of information for and the circulation of information to workers as creditors and ensure remedies for transactional avoidance are more accessible to creditors.

The legislation will expand the avenues of redress available to all employees in a collective redundancy scenario should their employer fail to comply with the rules. The Bill will establish a new statutory employment law review group that will advise the Minister in all aspects of employment redundancy law. This will provide a valuable resource to conduct an ongoing assessment of employment law to ensure it is fit for purpose.

An important and much-needed aspect of the Bill that should be highlighted is that it will not allow collective redundancies to be carried out before the expiry of a 30-day period following the notification of the Minister. This would mean no one would lawfully lose a job immediately, regardless of the insolvency of the business.

I welcome the Bill and believe it will provide an important change for workers in unfortunate cases where collective redundancy following the liquidation of a company is necessary. The Bill will promote the provision of quality information, enhanced participation and transparency for those workers facing a collective redundancy following a company insolvency, and it will also provide for the continued development of employment law in general.

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