Written answers

Tuesday, 26 May 2009

Department of Enterprise, Trade and Employment

Company Closures

10:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 114: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on declaring a company (details supplied) in County Dublin eligible under the Employers Insolvency Act, 1984. [21096/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Protection of Employees (Employers' Insolvency) Act 1984, which transposed EU Council Directive 80/987/EEC into Irish law, is the legal base for the Insolvency Payments Scheme. This Scheme provides for payment of certain entitlements owed to employees by their employer at the time of liquidation. These entitlements include wages, holiday pay, sick pay, minimum notice and pension contributions. Claims in respect of such entitlements under the Insolvency Payments Scheme can only be processed if a company is insolvent within the definition of the Protection of Employees (Employers' Insolvency) Act 1984, and a "relevant officer" – normally, a receiver or liquidator – has been appointed and certifies the claims; or if an employer is insolvent in accordance with the laws of another EU Member State. It is my understanding that SR Technics is not in an insolvency situation within the meaning of the Act. No notification has been received to this effect and no claims by or on behalf of the workers in the company have been received under the Insolvency Payments Scheme.

An employer could not be deemed to be insolvent for one limited purpose only without reference to wider company law implications.

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