Gerald Nash (Louth, Labour)
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16. To ask the Minister for Enterprise, Trade and Employment if he will provide an update on his plans to implement the recommendations of the Duffy Cahill report, especially in view of the growing number of corporate insolvencies; and if he will make a statement on the matter. [63392/22]

Simon Coveney (Cork South Central, Fine Gael)
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Ireland has a robust suite of legislation to protect and support workers facing redundancies. The Duffy Cahill report was in response to particular terms of reference which were quite narrow and specific and do not address the generality of redundancies that arise in insolvency situations.

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.

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.

Significant progress has 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 preparing 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.