Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 269: To ask the Minister for Enterprise, Trade and Employment, further to Parliamentary Question No. 169 of 5 December 2007, if a company (details supplied) has honoured or will honour the tribunal's decision of 24 October 2007; and if he will make a statement on the matter. [16183/08]

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

Following the voluntary liquidation of P.S.K. Construction Ltd (PSK), and the receipt of claims on behalf of the employees under the Insolvency Payments Scheme, the question arose as to whether a transfer of undertakings under the European Communities (Protection of Employees on Transfer of Undertakings) might have taken place between P.S.K. Construction Ltd (PSK) and P.L.K. Plant & Equipment Hire Ltd (PLK) — the employees' new employer. This was referred to the Employment Appeals Tribunal in June 2006 under Section 9(3) of the Protection of Employees (Employers' Insolvency) Act 1984 for a decision in the matter. The Employment Appeal's Tribunal decision of 24 October 2007 found that there was a transfer of undertakings between P.S.K. Construction Ltd (PSK) and P.L.K. Plant & Equipment Hire Ltd (PLK). The liability for the employees' unpaid entitlements therefore transferred to the new employer, PLK.

The Tribunal notified its decision to all relevant parties. The Department then wrote to the liquidator formally refusing the claims. These claims were in respect of arrears of wages, holiday pay and minimum notice under the Insolvency Payments Scheme which had been submitted by the liquidator on behalf of one hundred and forty-six employees. The Department advised the liquidator that the employees should pursue their claims against PLK. They were informed that if PLK refused to pay the outstanding entitlements, the employees could pursue claims directly against PLK by submitting complaints to a Rights Commissioner under the Payment of Wages Act 1991 (for arrears of wages) and the Organisation of Working Time Act 1997 (for arrears of holiday pay), and to the Employment Appeals Tribunal under the Minimum Notice & Terms of Employment Act (for any minimum notice entitlement), as appropriate.

I understand that PLK has now gone into liquidation. Claims under the Insolvency Payments Scheme are made through the person legally appointed to wind up the business, normally the liquidator, who will certify them from the records available, then send them to the Insolvency Payments Section to be processed. While the liquidator has had some informal contact with my Department, to date no claims have been made under the Insolvency Payments Scheme.