Rose Conway-Walsh (Mayo, Sinn Fein)
Link to this: Individually | In context

1. To ask the Minister for Enterprise, Trade and Employment the protections his Department will install for workers to prevent the situation that occurred at a company (details supplied) being replicated at other companies, whereby workers are left without any form of income for prolonged periods; and if he will make a statement on the matter. [62594/25]

Rose Conway-Walsh (Mayo, Sinn Fein)
Link to this: Individually | In context

Last month, one of Ireland's largest delivery companies went into receivership, leaving 300 direct employees' jobs at risk and impacting a further 600-plus jobs, including subcontractors, franchisees and seasonal workers. These workers have been left in limbo and are still technically employed by Fastway but no longer getting paid. What protections will the Department install for workers to prevent the situation that occurred in Fastway being replicated in other companies, whereby workers and subcontractors are left without any form of income for prolonged periods?

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context

I thank the Deputy for this very important question. My thoughts are with all those affected by the receivership and all of their families because I know it is a very difficult and uncertain time.

I also know the news can be very distressing for all of those involved.

Receivership is a long-standing legal mechanism for the enforcement of a security. Usually in Ireland, a receiver is an individual appointed by a lender, such as a bank, to take control of a company's or an individual's assets that were used as security for a loan. In general, a receiver's primary function is to secure the assets of the company, which has been mortgaged or charged in favour of the security holder who appointed him or her, and realise those assets so the secured creditor's debt is repaid as quickly and efficiently as possible. Receivers are independent in the exercise of their functions and I cannot intervene in such matters. Where employees are affected by receivership, the Government works in a co-ordinated way to assist with income supports and employment and training opportunities for those affected.

I received a collective redundancy notification from the receivers of the Nuvion Group on 31 October 2025. I understand the receivers are undertaking a 30-day consultation with employees' representatives as required by law. It is important to note there is no specific statutory restriction on employees from taking up additional employment during the consultation period in circumstances where they are not expected to attend the workplace. Provided they do not resign from the current employment, there should be no obstacle to them retaining their statutory redundancy entitlements.

Where their employer has become insolvent, employees' entitlements are protected under the redundancy payments scheme and redundancy Act. This scheme guarantees employees' statutory redundancy payments and certain wage-related entitlements such as arrears of wages and minimum notice. The receiver is responsible for applying, under the redundancy and insolvency payment schemes, on the employees' behalf. The processing of these claims cannot occur until the termination of the employment has taken place after the 30-day consultation period concludes. Following the completion of the 30-day consultation process, employees may apply for jobseeker's pay-related benefit or jobseeker's allowance, if their employment ends. Employees in need of immediate financial assistance should visit their local Intreo centre social welfare branch office, where an application for an urgent needs payment can be processed as a high priority.

Rose Conway-Walsh (Mayo, Sinn Fein)
Link to this: Individually | In context

I thank the Minister and I know the discussions we are having obviously overlap with the Minister for Social Protection. In these situations, it is very important that there is tight communication between both Departments to put in emergency services. The Minister said people can go to their Intreo offices, but in these situations it is important that dedicated are personnel available to people to answer all of their queries. The huge shock that comes with a receivership announcement leaves hundreds of families devastated. There is a lot of confusion. In particular, what workers and subcontractors were trying to find out was whether any of the payments the Minister cited would impact on their redundancy. They would need written confirmation of that because they do not want to find out, months down the line, that they have taken something that has jeopardised that. It is hugely important that we can protect those workers during prolonged periods without income when their employer has gone into receivership.

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context

I have also been in constant contact with the Department of Social Protection on this issue to ensure employees are supported. We have also been in touch with the Revenue Commissioners, particularly for those who are self-employed and linked to this. I am very clear that the approach the Revenue will take will be a very understanding one, considering the stress of cashflow when people get news like this or a company closes urgently. For those protections, provided the employee does not resign from his or her post, the redundancy is protected. That is the key issue. I am obliged to adhere to the EU collective redundancy directive, which is very clear that the consultation period has to be completed before other supports can be given. We have in place urgent needs support from the Department of Social Protection which will be available to assist employees. There is a lot of judicial precedent around that particular directive, particularly in Luxembourg where a number of cases were taken to ensure Ministers are unable to intervene in that 30-day period. While we are bound by that directive, we are working very closely with employees and their families and any support we can give will be forthcoming, particularly in future. We have to ensure there are huge opportunities in the economy to future-proof their families and get additional income for them at a very difficult time. This is very concerning for families but we are there to support them.

Rose Conway-Walsh (Mayo, Sinn Fein)
Link to this: Individually | In context

It would be very useful if the Minister and the Minister for Social Protection drew up a definitive list of actions and supports. I will work with them in doing that, so that if this situation happens again, we will have something - almost a pack - to present to workers showing them the do's and don'ts of what they are allowed to do, so people will have clarity around that. Will the Minister consider a number of measures to strengthen worker protections in similar circumstances? The first would be to have enhanced oversight of franchising and subcontracting models. Many of these arrangements blur the line between employment and self-employment. We need clearer legal definitions and enforcement to ensure the people doing the work are afforded the rights and protections of workers, including redundancy notice and holiday entitlements, even where corporate structures try to say otherwise. That is critically important.

The Minister must also remember that workers all over the country are impacted by this, including in my constituency.

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context

Absolutely, and I know there was a Fastway depot in my home town of Mullingar where a number of workers are affected. My thoughts are with them. The Government is here to support and work with them under the current framework. I note again the significant challenges presented by the 30-day consultation period, but it is there to protect workers. Any holiday pay or wages that accrue will be paid by the receiver. It is up to the receiver to take details from the self-employed as well, particularly proof of invoices, etc., which is very important for payment of workers later down the line. We have been in very close contact with families and the Department of Social Protection and we are happy to receive any further ideas on how to deal with these matters in the future. There is a lot of legislation in place to protect workers in this regard. If there are any allegations of any other activity, the Corporate Enforcement Authority and An Garda Síochána also stand ready to investigate, should any issues be raised with them.