Written answers

Tuesday, 1 December 2015

Department of Social Protection

Insolvency Payments Scheme Payments

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
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129. To ask the Tánaiste and Minister for Social Protection further to Parliamentary Questions Nos. 204 of 9 December 2014 and 185 of 14 July 2015 (details supplied), the status of the review taking place into situations where a company ceases trading, but is not liquidated and has outstanding payments to be given to employees; when the review will conclude; and if she will make a statement on the matter. [42318/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Under the provisions of the Protection of Employees (Employers’ Insolvency) Act, 1984 an employer company shall be regarded as being insolvent if the company is placed into receivership or if a winding-up order has been made or a resolution for the voluntary liquidation of the company has been passed. The former employer of the persons concerned has not engaged in any of these processes and therefore the persons are not covered by the provisions of the 1984 Act.

The Department continues to review the position to establish what, if anything, can be done to progress payments to individuals in situations where employers cease trading without engaging in a formal winding-up process and owe moneys to their employees. The Department is consulting a range of interested parties, including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners, in respect of these issues. Officials from the Department will continue to engage with all relevant parties to try to progress the matter. There are very difficult legal issues that need to be addressed and the potential impacts that any proposed policy development might have must be considered.

I am not in a position to indicate at this stage when the review will be completed. We do not yet have a legal solution to it because there are all sorts of consequences that might flow from taking a legal position that was not carefully worked out. It could damage other people as well as addressing the problems faced by some people. In addressing this, we must find a sensible and proportionate approach which does not have negative knock-on consequences for other workers' rights.

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