Oireachtas Joint and Select Committees

Wednesday, 6 July 2022

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Pre-legislative Scrutiny of the Companies (Protection of Employees' Rights in Liquidations) Bill 2021: Discussion

Ms Maeve McElwee:

We question whether it is appropriate and fair for two classes of employees, both of whom suffer the difficult situation of finding themselves redundant, should be entitled to different rates of pay and different priorities of payment under the law. That is the real question. Many employees find themselves in the very difficult situation of redundancy where an employer needs to restructure because it has lost business but may not be insolvent. Equally, many employers find themselves insolvent. I hope the Deputy will agree that the vast majority of employers deal with these things in accordance with the legislation and in the best way they possibly can when the circumstances arise. We are struggling to see a rationale for why somebody in an insolvency situation would be an entitled to higher statutory pay through the redundancy fund and a higher preference order versus somebody who was made redundant in other circumstances.