Written answers

Thursday, 5 February 2015

Department of Jobs, Enterprise and Innovation

Employment Rights

Photo of Jack WallJack Wall (Kildare South, Labour)
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153. To ask the Minister for Jobs, Enterprise and Innovation to set out the position regarding entitlements in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [5234/15]

Photo of Gerald NashGerald Nash (Louth, Labour)
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Under the provisions of Section 8 of the Payment of Wages Act 1991 a Rights Commissioner’s decision may be enforced as if it were an order of the Circuit Court. A formal request for such an order may be filed in the County Registrar’s office by the person seeking the order. Where a person’s former employer was a limited company and the company is in liquidation or receivership, the person may claim for payment of an award under the insolvency payments scheme. The purpose of the insolvency payments scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act, 1984, 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. There are statutory limitations on the amount payable. An Tánaiste and Minister for Social Protection, Joan Burton, has responsibility for the administration of the payments from the insolvency payments scheme.

There are companies which cease trading without engaging in a formal winding-up process and in some such cases those employers may owe monies to their employees. Such employees are not eligible for payments under the insolvency payments scheme.

I am informed that the Department of Social Protection is currently reviewing the position to establish what, if anything can be done to progress payments to individuals in these situations. The Department of Social Protection is not in a position to indicate when this review will be completed.

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