Page 56 - Workplace Relations Guide to Employment Law

30 days before the first dismissal takes place Insolvency
to see if the redundancies can be avoided or
lessened or their effects mitigated.
PURPOSE OF THE INSOLVENCY
These consultations must also cover PAYMENTS SCHEME
the basis on which it will be decided
which particular employees will be made The purpose of the Insolvency Payments
redundant. Employers must also give written Scheme, which is provided for in the
notice of their intentions to the Minister for Protection of Employees (Employers’
Employment Affairs and Social Protection at Insolvency) Acts 1984 to 2012, is to protect
least 30 days in advance of the first dismissal. certain outstanding pay-related entitlements
There are penalties for failure to comply with of employees in the event of their
these provisions. employer becoming insolvent as defined
in the legislation. Insolvency includes such
circumstances as liquidation, receivership
A collective redundancy means the dismissal
for redundancy reasons over any period of 30 and bankruptcy.
consecutive days of:
ENTITLEMENTS COVERED BY THE
(i) at least 5 persons in an SCHEME
establishment normally employing
more than 20 and less than 50 The main employee entitlements payable
employees, under the Scheme are arrears of wages,
sick pay, holiday pay and pay in lieu of
(ii) at least 10 persons in an notice due under the Minimum Notice and
establishment normally employing at Terms of Employment Acts. Payments on
least 50 but less than 100 employees, foot of adjudication decisions or mediation
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(iii) at least 10% of the number of resolutions under equality, maternity
employees in an establishment leave, adoptive leave, parental leave, unfair
normally employing at least 100 but dismissals and industrial relations legislation
less than 300 employees, may also be paid. A wage limit of €600 per
week applies to all pay-related entitlements
(iv) at least 30 persons in an payable under the Scheme.
establishment normally employing
300 or more employees. The Insolvency Payments Scheme also pays
employees’ outstanding contributions to
There are regulations in place since 21st occupational pension schemes which have
December, 2000 - European Communities been deducted from wages of the employees
(Protection of Employment) Regulations, but not paid into the pension scheme.
2000 (S.I. No. 488 of 2000) – which amend Unpaid employer pension contributions
the Protection of Employment Act 1977 to may also be paid from the Fund subject to
provide representation of, and consultation certain limits.
with, employees in the absence of a trade
union, staff association etc. There are statutory limits on the amounts
of payments and the periods to which they

7 Resolutions reached in accordance with Section 39 of the Workplace Relations Act 2015

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