Paul Murphy (Dublin South West, RISE)
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95. To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that former workers in a company (details supplied) have established that the company planned its tactical liquidation a year before workers were sacked; if the attention of the Government was drawn to this; and if he will make a statement on the matter. [62116/22]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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110. To ask the Minister for Enterprise, Trade and Employment if his Department's attention was drawn to a £200 million floating charge to a company (details supplied) that was signed off between two other companies on 9 April 2019, and that exactly 12months to the day when the charge became valid, the workers in the Irish branch of the company were sent a generic email to inform them that they were to be made redundant, which demonstrates that the liquidation was planned, pre-ordained and tactical to the parent company and sacrificing Irish workers; and if he will make a statement on the matter. [62132/22]

Dara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 95 and 110 together.

The liquidation referred to by the Deputy is proceeding under the supervision of the High Court and the Government cannot interfere with that process.

The procedures for liquidations are set out in the Part 11 of the Companies Act 2014. In general terms, a company is permitted to initiate a winding-up where it has complied with the requirements of the Companies Act 2014. A company both during normal operation and in a winding-up process must of course also abide by all relevant legal requirements, including the treatment of employees and creditors and disclosure to the Revenue Commissioners as well. However, the provisions of the Companies Act 2014 provide safeguards to prevent the abuse of the liquidation system. These include preferential payments under section 621 which provide for categories of employee entitlement such as wages owed, holiday remuneration, superannuation benefits, ill health payments and social welfare contributions.

Insolvency cannot merely be asserted - it is defined in the Companies Act and is scrutinised in the courts. In addition, the liquidator of an insolvent company must report to the Corporate Enforcement Authority (CEA) on its demise and must apply to the High Court for the restriction of each of the directors of the company, unless they are relieved of that obligation by the CEA. When it comes to workers, the Protection of Employment Act 1977 imposes obligations on employers who are proposing collective redundancies, including official notification to the relevant Minister and a 30-day consultation period to allow employee representatives adequate opportunity to consider the employer's proposals and make constructive proposals in response.

Following constructive engagement with the Social Partners, the Department published a Plan of Action on Collective Redundancies following Insolvency in May 2021. The Plan sets out several commitments to safeguard further the rights of workers in these circumstances including:

- To introduce amendments to employment law and company law dealing with matters related to collective redundancies following company insolvency, - To develop a Guidance Document to provide clear and accessible information in relation to the rights and remedies available to employees in such circumstances,

- To establish a new Employment Law Review Group.

Good progress has been made to date on the Plan:

- A Guidance Document was published in December 2021. This provides clear and accessible information to employees facing a collective redundancy situation following a company insolvency on their rights and the remedies available to them.

- Four company law actions have been implemented - three on the quality and circulation of information to workers as creditors through the Companies (Rescue Process for Small and Micro Companies) Act 2021 and one action on imposing a statutory obligation on directors to consider the interests of creditors in the period leading up to insolvency through the European Communities (Preventive Restructuring) Regulations 2022.

Progress has also been made on drafting Heads of Bill in respect of the remaining employment law actions that require legislative effect. It is expected these measures will cover amendments to the Protection of Employment Act 1977, which protects employees during collective redundancies.

In respect of company law, in December 2021 the Company Law Review Group (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 progress has been made in drafting amendments to the Companies Acts 2014 to further enhance the regulatory framework.

It is intended that the General Scheme of a Bill to provide for the amendments to company law and employment law under the Plan of Action will be proposed to Government in early 2023.

Finally, work has commenced on the establishment of the Employment Law Review Group. In advising the Minister, the Review Group will seek to ensure that the State’s suite of employment rights and redundancy legislation remains relevant and fit for purpose and is updated to reflect international developments. 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.