Michael Collins (Cork South-West, Independent Ireland Party)

The Protection of Employees (Employers' Insolvency) (Amendment) Bill 2025 is crucial legislation that aims to safeguard workers in the event their employer goes under.

Independent Ireland firmly supports the principle that no worker should be left unpaid if a business ceases trading. The Bill addresses a significant gap in our law, highlighted by the 2018 Supreme Court ruling, and ensures that employees of small and medium enterprises, including sole traders, are protected. One of the key provisions of this Bill is the introduction of a new deemed insolvency process. This allows workers whose employers stop trading without formally liquidating to apply for their employer to be deemed insolvent. This unlocks access to the insolvency payment scheme providing unpaid wages, holiday pay, notice pay, and more. This process helps employees avoid being trapped in limbo due to legal technicalities. We need to remember too that employees are left devastated when they lose their jobs. They have rent or mortgages to pay as well as childcare and the usual costs of living. This is at least one way of protecting the employee.

The Bill also recognises sole traders in insolvency arrangements, amending the principal Act to include employers under the Personal Insolvency Act 2012. This is a sensible and overdue change. Additionally, the Bill extends coverage to gender discrimination awards, allowing employees to claim compensation for Circuit Court gender discrimination awards in cases of employers' insolvency.

The Bill revises the salary cap application, responding to a Court of Appeal ruling by clarifying how the weekly pay cap of €600 is applied across different claim types. Independent Ireland has some concerns and cautions. We recognise that most small business owners want to treat their staff fairly and responsibly, yet the new process could lead to additional paperwork, form filling, and legal correspondence, especially under sections 4C and 4D. There is also a risk of increased employer costs as there is no clear commitment in the Bill that PRSI rates will not be raised in the future to cover increased payouts. We strongly caution against shifting the cost burden of this legislation on to the employers through higher payroll charges. The cost to a small business at the moment is detrimental. The VAT rate has not been reduced, which was promised in the lead up to the general election. The cost of running a small business has increased, with energy costs, insurance costs, and outdoor seating costs, so we need to ensure this does not end up being an added cost to small businesses down the line.

While the process provides a necessary safety net, it must be carefully monitored to ensure it is not open to vexatious or unverified claims. Employers must be given fair opportunity and time to challenge claims and supply evidence before a deemed insolvent status is applied. The administrative load on a family-run or sole trader business is another concern. The requirements for employers to interact with the Department, provide statutory declarations, and navigate a formal process may be difficult for non-corporate employers who lack HR or legal support. We would favour the introduction of simple, digital templates or low-cost advisory supports for small businesses facing claims. Financially the projected cost to the State is €570,500 per year in the scheme payments, plus a once-off cost of €14.92 million over five years. Administration costs are estimated at €185,000 annually under the Department of Social Protection. While Independent Ireland supports these investments in fairness and justice for workers we insist that they do not be used to justify a backdoor increase in PRSI or payroll taxes.

Independent Ireland supports the intentions and core mechanisms of the Protection of Employees (Employers' Insolvency) (Amendment) Bill 2025. We welcome the enhanced protection for workers, and especially those caught in informal insolvency situations. We urge caution to ensure that small businesses are not overwhelmed by the administrative demands, that costs are not unfairly passed on to employers via increased PRSI, and that the new system is monitored to prevent abuse.

We talk about sorting out the world but we also need to look at our own problems here. I met the Oireachtas broadcasting workers recently. They are being treated terribly unfairly here in the Dáil, a bit like the school secretaries. Basically, when it is holiday time here and the Oireachtas steps aside for a few months, these broadcasting workers do not get paid and have to sign on social welfare. This is a terribly unfair situation they find themselves in. All they are asking is for a bit of fair play. We need to look at this too. The Oireachtas only sits for about 100 days so outside of those days, they have no income and often must rely on social welfare. They receive no retainers, no pensions, no healthcare, and no income protections. Imagine that in here where legislation is made this is how we treat our own workers. This is something we need to look at. They work unsociable hours and during the run up to an election, they have no work for months. There are about 20 of these people working in the House. I would appreciate it if the Minister of State, Deputy Dillon, would look at that area as well. It is only fair that this is brought up as well as the school secretaries and the terrible situation they find themselves in during the summer.

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