Written answers

Wednesday, 20 July 2016

Department of Jobs, Enterprise and Innovation

Company Closures

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

67. To ask the Minister for Jobs, Enterprise and Innovation the status of her Department’s investigations and follow up following the closure of a company (details supplied); if all employment and company provisions were complied with; and if she will make a statement on the matter. [22782/16]

Photo of Pat BreenPat Breen (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The closure of Clerys department store and the manner in which Clerys workers lost their jobs was totally unacceptable and should not happen again.

A number of actions were initiated as part of the Government’s response to the closure of Clerys. This included the Duffy/Cahill expert examination of legal protections for workers. The Duffy/Cahill report provides a comprehensive analysis of the relevant provisions of employment law and company law. It makes a number of proposals for reform of the law, which are primarily concerned with amendments to employment law. My Department conducted a Public Consultation on the report following its publication on 26 April. The submissions received in response to the consultation are important in terms of assessing how the suggested reforms could operate in practice and in identifying any unintended consequences. They will inform the response to the report which will be brought forward for consideration by Government.

In addition, the Company Law Review Group was asked to review company law. This was with a view to recommending ways company law could be potentially amended to ensure better safeguards for employees and unsecured creditors. The work of the Company Law Review Group is progressing in this regard.

Separately, authorised officers have sought information from a number of parties in relation to the collective redundancies that took place in OCS Operations Limited on 12 June 2015. The work of the authorised officers relates to the application of the Protection of Employment Act 1977 to the collective redundancies in question. Prosecutions, if appropriate, remain an option under the Act.

The Deputy may be aware that one of the parties from whom the authorised officers sought information initiated proceedings in the High Court challenging the powers of the authorised officers. The hearing of submissions in the case concluded last week and judgement was reserved to a future, unspecified date. As the matter remains before the courts it would not be appropriate for me to comment any further.

With regard to compliance with company law, this is ultimately a matter for the court to decide in any particular case before it.

Comments

No comments

Log in or join to post a public comment.