John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank Senator Nash. I am taking this matter on behalf of the Minister for Employment Affairs and Social Protection, Deputy Regina Doherty. The Department of Employment Affairs and Social Protection received notification of the proposed liquidation of TAFC Manufacturing Ireland DAC on 22 October 2018.The Protection of Employment Act 1977 imposes a number of obligations on employers that are proposing collective redundancies, including an obligation under sections 9 and 10 to engage in an information and consultation process with employee representatives and to provide certain information in relation to the proposed redundancies. Section 11A of the Act provides that where an employee believes the employer to be in breach of sections 9 or 10, he or she may pursue a complaint to the Workplace Relations Commission, WRC. It is an offence under section 11 of the Act for an employer to fail to comply with sections 9 or 10. Following contact from the 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 30 days. The Department will continue to engage with the provisional liquidators as required.

The Social Insurance Fund provides a safety net for the employees in cases of employer insolvency. It is the responsibility of the liquidator 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 a statutory redundancy payment of two weeks' pay 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. In order 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. 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 a week. Arrears of wages, sick pay, holiday pay and minimum notice are limited to eight weeks.

The Department will ensure the affected employees receive advice on jobseekers' payments and other income supports that may be available to them. It will provide support to them on returning to work or accessing appropriate education and training and development options. Staff of the north-east division of the Department met employees of the company on Monday, 22 October to give them information on the Intreo 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. This 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 available opportunities for employment.

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