Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I move amendment No. 46:

In page 42, between lines 36 and 37, to insert the following:
“Provisions relating to winding up and bankruptcy
50. (1) (a) There shall be included among the debts that, under a relevant provision are, in the distribution of the assets of a company being wound up, to be paid in priority to all other debts, all compensation payable under this Part by the company to an employee, and the relevant provision shall have effect accordingly, and formal proof of the debts to which priority is given under this subsection shall not be required except in cases where provision is otherwise made in relation thereto under the Act of 1963 or any enactment that repeals that Act.(b) In this subsection—
“Act of 1963” means the Companies Act 1963;
“relevant provision” means—

(i) section 285 of the Act of 1963, or
(ii) any provision—

(I) of an enactment that repeals that Act, and
(II) that makes provision in relation to the payment of debts in priority to other debts in the distribution of the assets of a company that is being wound up.

(2) There shall be included among the debts that, under section 81 of the Bankruptcy Act 1988 are, in the distribution of the property of a bankrupt or arranging debtor, to be paid in priority to all other debts, all compensation payable under this Part by the bankrupt or arranging debtor, as the case may be, to an employee, and that section shall have effect accordingly, and formal proof of the debts to which priority is given under this subsection shall not be required except in cases where provision is otherwise made in relation thereto under that Act.".

The matter provided for in this amendment is currently dealt with in an uneven fashion under employment legislation. Some enactments include a provision for priority payments of awards thereunder in insolvency and bankruptcy proceedings and others, for no good reason, admit to do so. This amendment aims to provide consistency and universality for the priority payments of awards under all relevant enactments in the context of insolvency and bankruptcy proceedings.