Clare Daly (Dublin North, Socialist Party)
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To ask the Minister for Jobs, Enterprise and Innovation the action he will take regarding companies (details supplied) closing down and leaving workers without pay and redundancies. [3192/13]

John Halligan (Waterford, Independent)
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To ask the Minister for Jobs, Enterprise and Innovation his plans to deal with situations in which companies go into liquidation and workers, such as those in a company (details supplied) are left without wages or redundancy payment; and if he will make a statement on the matter. [3308/13]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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To ask the Minister for Jobs, Enterprise and Innovation his plans to deal with situations in which companies go into liquidation and workers, such as those in a company (details supplied) are left without wages or redundancy payment; and if he will make a statement on the matter. [3310/13]

Richard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 10, 44 and 54 together.

I very much share the concern of the Deputies in relation to the company concerned and particularly as regards the position of the employees in the company’s Irish stores who have been understandably apprehensive about the future of their jobs and the payment of monies owed to them by their employer. I understand that this situation has arisen due to difficulties across its operations in the UK and Ireland, arising from dramatic changes in the way music and films are bought and sold.

On becoming aware of the evolving situation in the company last week, I asked the National Employment Rights Authority (NERA) to contact the workers involved in the sit-ins and to mobilise NERA resources to answer queries from all workers on their employment rights.

My Department established a direct line of contact with the receiver from the outset and I was assured that communicating with staff would be a priority. I understand that, over the weekend, the receiver secured the agreement of staff to discontinue their sit-in in return for his commitment to arrange for payment of wages this week. The receiver has indicated he is making every effort to find a buyer for the Irish operation. I understand that the receiver has issued employees with letters notifying them that they are on temporary lay-off, pending an outcome to his efforts to secure a buyer. Redundancy notices have therefore not been issued to the employees.

In general terms, I would note that under the body of Irish employment rights legislation there are significant protections afforded to employees whose employers are insolvent and as a result default on payment of wages. If an employer is unable to pay wages and/or redundancy payments, employees are entitled to apply to the Social Insurance Fund - which is administered by the Department of Social Protection - for payment of the amounts otherwise due from the employer. These rights are contained in the Payment of Wages Act 1991, the Protection of Employees (Employers’ Insolvency) Acts 1984 - 2006 and the Redundancy Payments Act 1967 - 2007. The scheme applies to employees employed in Ireland in insurable employment whose employer is insolvent, as defined under the scheme. Entitlements are based on pay up to a maximum weekly rate of €600. There is a limit of eight weeks’ pay for arrears of pay, sick pay or holiday pay. Monies owed up to the appointment of the receiver are secured by the Social Insurance Fund. Monies owed and earned after the appointment may be claimed through a Rights Commissioner under the Payment of Wages Act, who will adjudicate on the matter. Additional protections afforded by the Protection of Employment Act 1977 (as amended) and the Minimum Notice and Terms of Employment Act are also of relevance. The Protection of Employment Act contains provisions requiring an information and consultation process that must be entered into with employee representatives prior to collective redundancies being implemented. An employer is prohibited from issuing notices of redundancy to employees during the mandatory information and consultation period. Remedies are provided for in the legislation in respect of breaches of these requirements. The Minimum Notice and Terms of Employment Act 1973 entitles an employee to notice of termination of employment of up to 8 weeks, depending on the length of service of the employee. A situation of temporary lay-off may impact on the application of this Act and I would urge individuals to contact NERA to establish the position regarding their rights.

Accordingly, employees left without pay and redundancy payments by an insolvent employer are protected in legislation and are entitled to receive outstanding payments from the Social Insurance Fund.

I am satisfied that the current body of employment rights legislation, backed up by the information and enforcement activities of NERA and the redress available to workers through the State’s workplace relations bodies, provides robust protection for employees, even in these very difficult circumstances.