Bríd Smith (Dublin South Central, People Before Profit Alliance)
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208. To ask the Minister for Employment Affairs and Social Protection if existing employment and company legislation will be examined to examine the steps which can be taken to aid workers such as those in a company (details supplied) facing mass redundancies; if emergency legislation will be introduced in line with recent suggestions by a union for a moratorium on such redundancies during the Covid-19 crisis; and if she will make a statement on the matter. [15811/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My sincere thoughts are with all Debenhams workers and other who are dealing with job losses at this difficult time. My officials have been assisting the affected workers through its Intreo service to help them in whatever way we can in terms of income supports and advice on further education and training options that will help them to find work within their sector or in other sectors as the economy improves over the period ahead. Due to COVID social distancing requirements it was not possible initiate the typical face to face multi-agency response including information sessions in physical venues for the employees of Debenhams who were facing redundancy. However, in view of the large number of employees and their dispersal across the country, my Department organised a bespoke on-line information session in May 2020 with input from other agencies. Feedback from employees and their unions has been very positive.

As the company is in liquidation, my Department can provide a safety net for employees and payment of statutory redundancy and other wage related entitlements to employees can be made from the Social Insurance Fund. Officials in the Redundancy & Insolvency section have engaged with the liquidators of Debenhams to ensure that all claims in respect of employees will be dealt with expeditiously.

I would like to assure you that the Government has committed in the Programme for Government to review whether the current legal provisions surrounding collective redundancies and the liquidation of companies effectively protect the rights of workers.

The existing suite of employment rights legislation provides industrial relations and employment rights supports for employees who have concerns or complaints regarding their employment rights. The WRC is the organisation which is mandated to secure compliance with employment rights legislation. The Customer Service section of the WRC, who operate a telephone helpline at 1890 808090 can provide further information in relation to employment, equality and industrial relations rights and obligations, and how to obtain redress where appropriate.

In relation to the proposal to withdraw the employers’ right to make employees redundant for a certain period, I fully understand that the proposal is motivated to protect employee rights. However, this proposal could have far reaching and significant unintended consequences, including interfering with individual contracts of employment and the potential for significant constitutional law issues.

Furthermore, it cannot be said that all employees will want the redundancy provision removed as is suggested. Employees may have significant service with an employer and be aware that if the business is struggling, redundancy and seeking new employment opportunities may be the better option for them.

The proposal could also create a risk to an employee's right to a redundancy payment. The State does not have the power to stop a business closing or to prevent liquidations once the provisions of company law are complied with. If the right of the employer to make an employee redundant is taken away this could jeopardise an employee’s right to compensation by way of a redundancy payment while the liquidation of that company is underway.

It is also important to bear in mind why redundancy provisions are used. If a business is in trading and in financial difficulties very often one of the mechanisms used to save that business (which in turn saves some jobs) is redundancy. An employer may downsize their business and reduce their workforce by way of redundancies in order to continue to be viable. If the right of the employer to make employees redundant is removed it could result in more permanent job losses.

Employers have to make decisions on the ongoing viability of their firms in real time and having regard to real circumstances – particularly in circumstances where revenues have collapsed for many firms. Under company law provisions directors of firms have very serious and personal responsibilities to ensure that they can continue to trade and not trade whilst insolvent.

Furthermore, and this is important for employees who may be in a position to negotiate a redundancy package with the many genuine employers in our economy - if a company is restricted from making employees redundant and has to retain them on payroll, the assets of that company will dissipate and mean that any negotiated redundancy package has less chance of success.

By putting in place a wide range of business supports including the temporary wage subsidy scheme which helps affected companies keep paying their employees, maintain the employment relationship and keep businesses viable, the Government has already put in place significant measures which are helping to prevent redundancies.