Oireachtas Joint and Select Committees

Wednesday, 4 November 2020

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Duffy Cahill Report: Discussion

Mr. Kevin Duffy:

I will deal with the question on the value of a consultation period. It is important to remember - this is noted in the report - that there is an obligation under EU law to engage in the process of consultation. This applies to a liquidator. What does not apply to the liquidator is the prohibition on giving effect to the collective redundancies within the 30-day period. The purpose of the consultation may well be for people to advance arguments about how the effects of the redundancies can be mitigated and how retraining and redeployment opportunities might be available. It is not just about money but in many situations it will be. The purpose of the consultation would be to test whether there is an entitlement to enhanced redundancy. That is separate from the question of who is going to pick up the tab at the end of the day and where the money is going to come from. There can be a genuine and real argument about whether there is in fact an entitlement or a custom and practice. That can be tested during the 30-day period. As we observe in the report, if necessary, it can be adjudicated upon through the normal statutory dispute resolution processes. I do not think it would be fair to say that if a liquidator states that a company is insolvent there is not a brass farthing. That requires consultation. It was with that in mind that we recommended that the obligation to refrain from giving effect to the dismissals for the consultation period should extend to a liquidator. I will ask Ms Cahill to deal with the statutory injunction issue.