Written answers

Thursday, 24 January 2013

Department of Jobs, Enterprise and Innovation

Employment Rights

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Jobs, Enterprise and Innovation the current status of HMV employees in view of the lack of clarity following the lay-offs at the store; and if he will make a statement on the matter. [3650/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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To ensure the employees had access to information on their employment rights, on becoming aware of the evolving situation in the company, 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 HMV 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 HMV 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.

I would point out that temporary lay-off is governed by the Redundancy Payments Acts, which are administered by the Department of Social Protection. I would urge HMV employees to contact the National Employment Rights Authority for information about their employment rights.

In general terms, under the body of Irish employment rights legislation there are significant protections afforded to employees whose employers cease trading. 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. 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. 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.

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