Louise O'Reilly (Dublin Fingal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

23. To ask the Minister for Enterprise, Trade and Employment if he will clarify the progress made to date on enacting the recommendations of the Plan of Action – Collective Redundancies in order to protect workers in cases of mass redundancies, tactical insolvencies and other such instances; and if he will make a statement on the matter. [43741/22]

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Work is continuing on implementing the Plan for Action on Collective Redundancies published in June 2021, with some company law changes already made and a number of both employment rights and further company law changes being worked on by my Department.

The Plan sets out several commitments to safeguard further the rights of workers in these circumstances including:

1. amendments to company law and employment law,

2. establishing a new Employment Law Review Group, and

3. the provision of an accessible guidance document.

The Guidance Document was published in December 2021. It provides clear and accessible information in relation to the rights and remedies available to employees facing a collective redundancy situation following a company insolvency.

In relation to refining employment law, work is progressing on the General Scheme of a Bill to amend the Protection of Employment Act 1977. My Department is liaising with the Department of Social Protection to work through certain outstanding policy issues. Once completed, it is intended to bring the General Scheme to Cabinet.

Work has commenced on the establishment of the Employment Law Review Group. This work involves drafting Terms of Reference, organising suitable membership and agreeing a workplan. The Group will initially be established on a non-statutory basis in 2023. The appropriate legislation to have the Group placed on a statutory footing will be drafted as soon as possible thereafter.

Turning to company law, the Companies (Rescue Process for Small and Micro Companies) Act 2021, which was commenced in December 2021 also provided for amendments arising from the Company Law Review Group’s first phase of work in the area of employees’ rights as creditors. These amendments improve the flow of information to employees as creditors during a liquidation and provide for a dedicated position for employees on the committee of inspection, a committee which may be elected to oversee the liquidation.

In December 2021, the CLRG submitted its report following its consideration of the issue of splitting of corporate operations from asset holding entities in group structures. The Group ultimately concluded that the incidence of abusive practices in corporate restructuring, while attracting significant attention, is in fact low. This conclusion was supported by the then Office of Director of Corporate Enforcement which noted that its reviews of liquidations indicated that in over 90% of all liquidations, company directors had acted honestly and responsibly.

Nonetheless, the CLRG made a number of recommendations which my Department has analysed and preparatory work has commenced on making amendments to the Companies Acts 2014 to further enhance the regulatory framework.