John McGuinness (Carlow-Kilkenny, Fianna Fail)
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284. To ask the Minister for Social Protection further to Parliamentary Question No. 407 of 30 April 2013, regarding unfair dismissal awards in respect of former employees of a nursing home (details supplied) in County Kilkenny if she will confirm the progress that has been made in the context of her Department paying these claims; and if she will make a statement on the matter. [32888/13]

Joan Burton (Dublin West, Labour)
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The purpose of the insolvency payments scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act, 1984, which, in turn, derives from EU Council Directive 987/80, is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. These entitlements include wages, holiday pay, sick pay, payment in lieu of minimum notice due under the Minimum Notice & Terms of Employment Acts, 1973-2001, and certain pension contributions. Various other statutory awards made by the Employment Appeals Tribunal, Rights Commissioners, etc., are also covered by the Scheme.

Payments under the scheme are made from the Social Insurance Fund and the Minister becomes a preferential creditor against the assets of an employer in respect of most amounts paid under the scheme. Where a person’s former employer was a limited company, the company should be in liquidation or receivership in order for the person to be eligible to claim under the insolvency payments scheme. In such circumstances, the liquidator or receiver becomes the relevant officer for submitting claims under the scheme as he or she has access to the company records and can certify that the amounts claimed are in order.

I am aware that there are some cases where employers have ceased trading without engaging in a formal winding-up process and that in some such cases, such as the one to which the Deputy refers, their former employees may have monies owed to them. I am examining the legislative position with regard to these types of situations with a view to establishing what, if anything, can be done to progress payment of entitlements where no liquidator or receiver is appointed.