Written answers

Tuesday, 21 March 2023

Department of Enterprise, Trade and Employment

Industrial Relations

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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143. To ask the Minister for Enterprise, Trade and Employment the steps he is taking to ensure that staff receive their full wages in a timely manner from a former employer. [13053/23]

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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Ireland has a robust suite of employment rights legislation in place to protect and support workers.

Statutory and contractual employment terms apply in relation to the payment of wages. Failure to pay all or part of the wages due to an employee is considered an unlawful deduction and a complaint can be made under the Payment of Wages Act, 1991.

The Payment of Wages Act 1991 establishes a range of rights for all employees in relation to payment of wages. The Act regulates how wages and salaries are paid and what deductions may be made from same. Under this Act, an employer is not permitted to make deductions from an employee's wages unless the deduction is authorised under the contract of employment, required by statute, or is made with the prior written consent of the employee.

If an employee believes that their employer has made an unlawful deduction from their pay, then they may refer a complaint to the Workplace Relations Commission (WRC).

It is unclear from the question whether the company is insolvent or has gone into liquidation but either way, the employees are entitled to pursue a claim for non-payment of wages either from the employer or the liquidator as the case may be.

It is the employer’s responsibility to pay statutory redundancy to eligible workers. In situations where an employer is genuinely unable to pay statutory redundancy entitlements due to financial difficulties or insolvency, the State provides a safety net and may make the statutory redundancy payments on the employer’s behalf from the Social Insurance Fund.

The WRC is the organisation which is mandated to secure compliance with employment rights legislation. Employees have the right to refer complaints to the WRC on a wide range of employment law breaches, including under redundancy legislation and the Payment of Wages Act 1991, for adjudication and compensation where appropriate. The WRC’s Customer Service and Information Unit can provide further information in relation to employment rights and obligations.

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