John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank the Deputies for raising this important issue. I share their concern about situation in HMV Ireland Ltd., including in particular the position of employees in the company's Irish stores and consumers who hold unredeemed gift vouchers. The Minister for Jobs, Enterprise and Innovation regrets that he cannot be here as he is attending a Cabinet meeting.

It was announced on Monday, 14 January 2013 that HMV in the UK would be put into administration, which is an insolvency process in the UK. The HMV stores in Ireland are operated by a separate legal entity, HMV Ireland Ltd. The Minister was informed that the Irish operation was put into receivership yesterday. The Irish receiver has indicated that he intends to seek a buyer for all or part of the business in Ireland. While I hope these efforts prove successful, at this point the future of the business is a matter for the receiver and any potential purchaser.

The Minister is aware that workers at HMV stores in Limerick began a sit-in yesterday and understands their concerns about the closure of the shops and the uncertainty they face. At his request and in an effort to allay their fears regarding unpaid wages and redundancy payments, officials from NERA were in contact last night with workers involved in the sit-in to provide advice on their employment rights. In situations in which an employer is insolvent and as a result defaults on payment of wages, the employees are protected by legislation. If the employer is unable to pay wages or redundancy payments, the employees are entitled to apply to the Department of Social Protection for payment of the amounts due from the employer. NERA is fully briefed on the situation and stands ready to provide all HMV workers with support and advice on their employment rights. My Department has opened a direct line of contact with the receiver, who has indicated that communicating with staff is a priority and to this end sent two staff to each location yesterday afternoon. It is clear that the receiver, having been appointed at 3 p.m. yesterday, is gathering all financial information relevant to the Irish operation and assessing the position. The receiver has indicated that he is making every effort to secure a purchaser for the stores. HMV in Ireland was not in receipt of supports from the State's enterprise agencies.

It is my hope that jobs can be saved. In the event of any redundancies arising, all the supports of the State will be made available. The employees should be aware that their employment rights are protected by a wide variety of legislation. The Protection of Employment Acts 1977 to 2007 require an employer to engage in a 30-day consultation period with employees in collective redundancy situations. The Minimum Notice and Terms of Employment Act 1973 requires employers to give employees notice of termination of employment or to pay employees in lieu of notice. The length of notice depends on the length of service.

Where an employer is insolvent and as a result defaults on payment of wages, the employees are entitled to seek payment from the State through the insolvency payments scheme administered by the Department of Social Protection. The employees may be entitled to payment from this fund in respect of holiday pay, outstanding pay and minimum notice, among other entitlements. Entitlements are limited to a maximum weekly rate of €600 and there is a limit of eight weeks of arrears of pay, sick pay or holiday pay. Claims are made through the person legally appointed to wind up the company. Where a redundancy claim is submitted electronically, the processing of the redundancy claim is prioritised by the Department of Social Protection and payment can be expected after approximately eight weeks. Moneys owed up to the appointment of a receiver are secured by the Social Insurance Fund. For moneys owed and earned after the appointment, a claim may be made to a rights commissioner, who will adjudicate on the case.

The issue of temporary lay-off is covered by the Redundancy Payments Acts, which are administered by the Department of Social Protection. An employer can lay off an employee if it is permitted by the contract of employment or if it is custom and practice in the workplace. Otherwise, the agreement of the employee should be obtained. If an employee does not agree to lay-off, he or she may be made redundant. If the receiver succeeds in selling all or possibly part of the company as a going concern, most of the employees' terms and conditions of employment may be protected by the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003.

In so far as the sale of gift vouchers is concerned, consumer protection law prohibits traders from engaging in unfair or misleading commercial practices. Traders who are involved in the sale of gift vouchers are required to ensure that they do not mislead consumers through the omission of material or false information with regard to the characteristics of the gift voucher being offered for sale. The purchase of gift vouchers gives rise to particular considerations and it is important, therefore, that consumers fully acquaint themselves with the particular characteristics of any gift voucher they purchase. In this regard the National Consumer Agency provides advice to consumers on the particular matters they should consider when purchasing gift vouchers or cards. Aside from general advice, the agency also issued a public statement in the run-up to Christmas urging consumers to use gift vouchers as quickly as possible so as to avoid any difficulties in the event that the retail outlet selling the voucher went out of business. As regards consumers who have used payment cards to purchase vouchers from retailers that cease trading, the agency advises them to contact their card issuer to ascertain whether the charge-back rule of the payment card company can be invoked to recover the amount spent on the gift voucher. The agency's full advice and public statements on the purchase of gift vouchers can be obtained from its website.

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