Written answers

Tuesday, 31 May 2016

Department of Jobs, Enterprise and Innovation

Labour Court Awards

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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896. To ask the Minister for Jobs, Enterprise and Innovation how a worker who has an adjudication from the Rights Commissioner and/or Labour Court receives payment of money owed to him or her by an employer who has ceased trading without going through the usual statutory processes for winding up a company; and if she will make a statement on the matter. [13176/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Section 43 of the Workplace Relations Act 2015 provides that where a complaint which has been upheld at first instance by an Adjudicator of the Workplace Relations Commission (WRC), and has not been appealed by either party, remains unimplemented after a period of 56 days, the complainant concerned, a trade union or excepted body acting on behalf of the complainant, or the WRC in certain circumstances, may apply to the District Court for an order directing the employer to carry out the decision in accordance with its terms. Section 45 makes similar provision in respect of Labour Court decisions under the Act which remain unimplemented after a period of 42 days. It is an offence to fail to comply with an order under section 43 or 45 of the Workplace Relation Act, directing an employer to pay compensation to an employee. The Act provides for a defence to proceedings for this offence for the defendant to prove on the balance of probabilities that he or she was unable to comply with the order due to his or her financial circumstances. However a person guilty of an offence shall be liable, on summary conviction, to a class A fine or imprisonment not exceeding 6 months or both.

Cases which relate to the enforcement of a complaint or dispute presented or referred to a Rights Commissioner before 1 October, 2015 would be governed by the law which existed before the commencement of the Workplace Relations Act 2015.

Where a person’s former employer was a limited company, the company must be in liquidation or receivership in order for the person to be eligible to 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. The Minister for Social Protection, Leo Varadkar T.D., 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.

The Department of Social Protection has previously indicated that it is reviewing the position to establish what, if anything can be done to progress payments to individuals in these situations.

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