Tommy Broughan (Dublin North East, Labour)
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118. To ask the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to any difficulties regarding the enforcement of decisions made by the Employment Appeals Tribunal, particularly relating to the payment of money owed; the penalties for employers who refuse to abide by the decision of the Employment Appeals Tribunal and if these penalties are enforced; if he is willing to take action to strengthen the remit of the Employment Appeals Tribunal relating to the enforcement of decisions made against employers, particularly with regard to enforcing the payment of wages and entitlements owed to employees; and if he will make a statement on the matter. [40258/13]

Richard Bruton (Dublin North Central, Fine Gael)
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I am aware of the difficulties experienced on occasion by workers in seeking to enforce awards that have been made in their favour by all of the Employment Rights bodies including the Employment Appeals Tribunal (EAT).

In terms of the enforcement of EAT awards the holder of an award or their trade union may seek to enforce the award themselves through the Circuit Court or they may seek, in most cases, the assistance of the Minister to have this process carried out on their behalf. This involves the use of the Enforcement Services Unit of the National Employment Rights Authority (NERA) to have such awards enforced if appropriate through the civil courts.

In practice upon receipt of a request, NERA will endeavour to engage with the employer to seek compliance with the relevant determination. Should the employer refuse to comply with a determination, NERA may initiate legal proceedings, in the Minister’s name. In deciding whether or not to intervene, NERA has regard to the amount of the award, the potential for achieving a favourable outcome for the claimant and the scale of the costs likely to be incurred in doing so. The enforcement of a Circuit Court order in these circumstances is the responsibility of the relevant County Sheriff and my Department has no capacity to intervene.

Where an employer is legally insolvent (liquidation, receivership, bankruptcy etc.) the employee may be entitled to seek redress, through payment of such an award, from the State under the Insolvency Payments Scheme which is operated by the Department of Social Protection. Specifically, in respect of EAT determinations in cases of Redundancy Appeals, where an employer fails to pay the amount awarded; an employee has recourse to the Social Insurance Fund.

I acknowledge that the system of enforcement of awards that has developed over the years has become complex and in some cases involves very long delays. In this context and in relation to industrial relations and employment rights generally I have initiated a root-and-branch reform with the objective of establishing a world-class Workplace Relations Service.

I believe that for a workplace relations system to have credibility it must be supported by proportionate, effective and efficient compliance and enforcement measures. The current system of enforcement of employment rights awards is cumbersome, expensive and not fit for purpose. For this reason, I am proposing to make provision in the Workplace Relations Bill for a range of enhanced compliance measures, including the use of Compliance Notices, Fixed Charge Notices and a new mechanism for enforcing awards of the WRC Adjudicators and Labour Court Determinations. I am confident that the introduction of these measures will provide for more proportionate, efficient and effective enforcement of employment law.