Brendan Griffin (Kerry, Fine Gael)
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403. To ask the Minister for Social Protection when the review of eligibility for the insolvency payments scheme will be completed; and if he will make a statement on the matter. [22020/16]

Leo Varadkar (Dublin West, Fine Gael)
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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 Act does not cover situations of informal insolvency where employers cease trading without engaging in any formal wind-up process and their former employees are left with wage-related payments owing to them.

The Department is continuing to review the situation of informal insolvency and to establish, what if anything, can be done to provide access for employees to the Insolvency Payments Scheme in such situations. The Department is actively consulting with 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 this issue.

The Department is also considering legal advice on the difficult and complex company and employment law issues arising and the potential impacts that any potential policy developments could have on existing legislation. In particular, the Department of Social Protection is mindful of its responsibility to uphold the legal structure within which companies operate.

Officials from the Department are continuing to engage with all relevant parties to try to progress the situation of informal insolvency. I am not in a position to indicate at this stage how or when this will be resolved.

I hope that this clarifies the current state of play for the Deputy.