Pat Breen (Clare, Fine Gael) | Oireachtas source

I thank the Deputies for raising this sensitive issue, which has arisen as a result of the closure of The Authentic Food Company in Dundalk. Our thoughts, like those of the two Deputies, whom I know have been in touch with the employees, are always with the families affected by the closure of a company. It is a difficult time for them. We all understand that very much.

The Protection of Employment Act 1977 imposes a number of obligations on employers who are proposing collective redundancies, including an obligation under sections 9 and 10 to engage in an information and consultation process with employees' representatives and to provide certain information relating to the proposed redundancies.

Section 11A of the Act provides that, where an employee believes the employer to be in breach of section 9 or section 10, he or she may pursue a complaint to the Workplace Relations Commission, WRC. It is also an offence under section 11 of the Act where an employer fails to comply with section 9 or section 10.

Following contact from my Department, the joint provisional liquidators of the company have advised that the consultation process with employees began on Friday, 19 October and will continue for a period of 30 days.

My Department will continue to engage with the provisional liquidators as required.

In cases where an employer is insolvent, the Social Insurance Fund provides a safety net for the employees. It is the liquidator’s responsibility to seek, on behalf of employees, payment from the redundancy payments scheme in respect of statutory redundancy and from the insolvency payments scheme in respect of wage related entitlements. An eligible employee is entitled to two weeks' statutory redundancy payment for every year of service, plus a bonus week. Compensation is based on the worker's length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week. To qualify for a statutory redundancy payment, an employee must have at least two years of continuous service, be in employment which is insurable under the Social Welfare Acts and be over the age of 16 years. Entitlements covered under the insolvency payments scheme are arrears of wages, holiday pay, sick pay, payment in lieu of minimum notice and certain pension contributions. Payments are calculated by reference to an employee's wages and are subject to a limit of €600 per week. Arrears of wages, sick pay, holiday pay and minimum notice are limited to eight weeks.

My Department will ensure that the affected employees receive advice on jobseeker's payments and other income supports that may be available to them and will provide support to them in returning to work or accessing appropriate education and training and development options. The team in the north-east division met employees of the company yesterday and provided them with information on the lntreo services available locally. An information and recruitment event for the workforce will be held in the Crowne Plaza Hotel in Dundalk on Thursday, 1 November next. The event will be supported by other key service providers. Local employers with job vacancies have also committed to attend. The key message for employees is that the Department will provide any redundancy, insolvency and jobseeker payments to which they may be entitled in a timely manner and will proactively help them to access opportunities available for employment.

Finally, the Workplace Relations Commission's customer service section provides information on the rights and obligations of employees and employers, respectively, under employment rights legislation. WRC information officials are available to meet the staff concerned, either individually or collectively, to discuss their employment rights, including matters related to redundancy.

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