Joe O'Reilly (Fine Gael) | Oireachtas source

I have the honour and responsibility of representing my very able colleague and spokesperson in this area, Senator Garret Ahearn. That is my function today.

I join colleagues in expressing delight in the Minister of State’s appointment. I have known her on the backbenches and worked on a few projects in common with her, most of them to do with the horrific situation in Gaza. In that time, I discovered both her passion for the truth and her absolute sincerity as a public representative. She did not seek to take popular options and I appreciate that. She brings those qualities to the role of Minister of State. I hope to continue working with her in her new role.

I could not agree more with my colleague from the Green Party on apprenticeships. I would like the Minister of State to give that serious thought and to respond on the matter.

What is at issue here is a measure to bring the law and the whole process around winding up and liquidation into the modern world and to put a focus and emphasis on employees as creditors. Modernising the law is crucial. A minority of people engage in malpractice but we cannot have workers become the victims of these people.

The introduction of the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Bill represents a significant step towards strengthening employee protections and maintaining enterprise agility. The Bill, which is based on commitments outlined in Government strategy, aims to align legislative frameworks with current employment dynamics, and part of that would be the apprenticeship element. Amendments to the Protection of Employment Act underline a proactive approach to collective redundancy situations, requiring responsible parties to engage in consultation. It is vital that everybody is kept in the loop. It will the parties to provide necessary information in a timely way when it is useful, and not be tardy with it, which is also vital, and to notify authorities in a timely manner. That is all critical.

The Bill is broader in scope and includes amendments to the Companies Act 2014, which have the goal of increasing transparency and accountability during the winding-up process. The legislation seeks to foster a fair and equitable environment in a corporate restructuring context by strengthening provisions governing employee rights as creditors and improving oversight mechanisms, which are all worthy and necessary objectives.

The proposal to form an employment law review group demonstrates a commitment to continuous refinement and adaption, ensuring that regulatory frameworks are responsive to changing labour landscapes and international standards. It has to be an evolving and dynamic process where we can adapt to new situations.

The amendment to the Protection of Employment Act 1977, as outlined in the Bill, represents a significant step towards modernising labour laws. The amendment in section 12 to the mode of delivery for notification under the 1977 Act demonstrates a strategic embrace of technology, which is obviously welcome. The shift to electronic means in addition to traditional methods not only improves efficiency but also ensures timely notifications, which are critical for protecting workers' rights. In this way, people will not be able to hide behind some long-winding snail mail or delaying exercise.

The enforcement provisions, particularly in section 7, demonstrate a commitment to accountability. The Bill strengthens employee rights by imposing fines on those responsible for non-compliance. That is a necessary exercise because it cannot just be all carrot. The defence provision in section 7, which mirrors established precedent, takes a balanced approach, protecting against excessive penalties and upholding professional standards. The amendments in section 8 provide an employee with avenues for redress, which aligns with the recommendation for a strong legal framework. The provisions regarding companies and the WRC demonstrate a commitment to equitable outcomes. Furthermore, the proposed fines seek to strike a balance between deterrence and fairness, which should be the principle of all good law. The ongoing dialogue among stakeholders demonstrates a commitment to improving legislative measures to meet changing needs. The amendment on fines in section 11 signals a more nuanced approach to penalties. The distinction between fines for employers and responsible individuals demonstrates an understanding of different contexts and different liabilities in the business landscape, as well as responsibilities.

As discussions continue, clarity on the legal mechanisms for fine recovery will be critical to ensuring successful implementation and adaptability in the face of changing workplace dynamics. It would be interesting to hear the Minister of State comment on that. The fines are no good if they cannot be got, and that is particularly difficult in this context.

The Bill also establishes the employment law review group, which draws on the successful model of the Company Law Review Group. The group's mandate includes a wide range of responsibilities, including monitoring, reviewing and advising the Minister on various aspects of employment law and redundancy procedures. Section 14 outlines these functions, emphasising the review group's role in modernising and improving the effectiveness of employment and redundancy legislation. Section 15 details the review group's membership structure, giving the Minister discretion in appointing members and determining the group’s composition.They will include workers, employers, academic legal experts and practitioners from bodies such as the Labour Court. It is vital in that context that there are union representatives with regard to employees' rights. This diversity ensures a comprehensive and inclusive approach in dealing with the complexities of employment law.

Section 16 establishes a systematic approach requiring the Minister to determine consultation with the review group twice yearly. This structured framework enables ongoing assessment and adaptation to the changing trends and developments, and so on.

Part 4 amends the Companies Act 2014 by addressing several critical aspects of corporate governance and creditors' rights. One significant change concerns the disclosure of information to employees as creditors. It is critical that employees have every right to timely information that they can use effectively and that this information is not given to them in any slow or other way to put them in a bad position.

Section 20 amends section 571 of the 2014 Act requiring company directors to promptly notify employees and their representatives following the presentation of a winding-up petition.

Section 21 is probably critical in that it authorises the court to consider the notification requirements, which I have been referring to somewhat, on winding-up petitions and the improving and the importance of informing affected parties to participate meaningfully. These were the expressed concerns of the unions in the past about a lack of notification regarding the appointment of provisional liquidators. Unions, workers' representatives and the workers themselves need to know at a very early stage about such developments as they are, in real terms, the big stakeholders apart from the owners. This section proposes empowering the court to direct provisional liquidators to promptly engage with employee representatives thereby increasing transparency, which is so important.

Statements should be issued to employees during company liquidations. Employees should have access to financial information. That is critical. Holding that back from them disempowers them in a huge way. Employees need to know that they are valid creditors and, in fact, that they are the most valid creditors in a number of respects if they have had a long-term commitment to the company. Employees, therefore, need a statement of affairs and need to be clear and available.

In summary, the Bill will modernise the legislation is this area and will keep business moving. The two previous speakers said that the important emphasis should be on preventing the closure and liquidation and trying to restructure. That can often entail the involvement of the workers. We need to try to prevent liquidation but where it happens, we need to protect the workers and I believe we will achieve that in this legislation. It certainly will have my support. I offer my congratulations again to her.