Peadar Tóibín (Meath West, Sinn Fein)
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272. To ask the Minister for Jobs, Enterprise and Innovation his views that the decision of the new owners of Clerys (details supplied) to transfer ownership of an insolvent company (details supplied) to two directors who also happen to be insolvency experts exhibits the kind of sharp practice that the existing Companies Act legislation is not sufficiently robust to act as a deterrent against; and if he will make a statement on the matter. [29692/15]

Richard Bruton (Dublin North Central, Fine Gael)
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The liquidation of OCS Operations Limited is currently in the hands of liquidators under the supervision of the High Court. While the liquidation is at an early stage, I understand that the High Court was informed at the hearing on 6 July that the liquidators have identified a number of matters which they intend to investigate as part of the liquidation process. It is only when all the facts and events leading up to the winding up of the company are known – and any potential legal challenges raised - that an informed decision can be made on whether an amendment to Company Law should be made.

As the Deputy knows the liquidators have important duties under Company law. They include:

- an obligation to provide within 6 months of their appointment a report on the conduct of Directors to the Director of Corporate Enforcement;

- a requirement to make an application to the High Court for the restriction of Directors unless the Director of Corporate Enforcement has relieved the liquidator of this requirement.

Peadar Tóibín (Meath West, Sinn Fein)
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273. To ask the Minister for Jobs, Enterprise and Innovation his views that there is no provision contained within the Companies Act 2014 that will enable the former direct employees of Clerys or their trade union representatives to secure the outstanding redundancy payments from the new owners (details supplied), and that sections 224, 228 and 229 of the Companies Act 2014 do not provide for such a scenario. [29693/15]

Richard Bruton (Dublin North Central, Fine Gael)
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Under the body of Irish employment rights legislation, there are significant protections afforded to employees whose employers are insolvent and who, as a result, default on payment of wages or payment of statutory redundancy entitlements. These protections are administered by the Department of Social Protection.

Under the Redundancy Payments Acts, an eligible employee with a minimum of two years’ continuous service is entitled to a statutory redundancy payment calculated on the basis of two weeks’ salary for every year of service plus one further week’s pay. Compensation is based on the worker’s length of reckonable service and reckonable weekly remuneration, subject to a salary ceiling of €600 per week. In addition, the Department of Social Protection administers the Insolvency Payments Scheme which was established under the Protection of Employees (Employers’ Insolvency) Acts 1984 to 2006. The Insolvency Payments Scheme provides for payment from the Social Insurance Fund of certain pay-related entitlements owed to employees by their employer in the event of the insolvency of their employer. Such entitlements include the following: arrears of wages; holiday pay; sick pay; payment in lieu of minimum notice due under the Minimum Notice & Terms of Employment Act and certain pension contributions.

The above entitlements are based on law. The very purpose of the legislation is to ensure that all employees - regardless of the legal entity that is their employer - receive their full statutory redundancy payments.