Lemons Sweets workers’ unpaid entitlements
The Minister said Lemons Sweets entered receivership before the 22 October 1983 cutoff, so its former workers’ unpaid entitlements are not covered by the 1984 Act. He said payment would require amending the Act and a meeting could raise false hopes; he made no commitment to seek an amendment, saying the Government could review it as part of its legislative programme.
asked the Minister for Labour if he will enter into early discussions with the former staff of Lemons Sweets in relation to salaries, wages and other entitlements which they lost owing to the closure in 1983 and which are not covered by the Protection of Employees (Employers Insolvency) Act, 1984.
Comment on this
As I explained in a reply to a previous question by the Deputy — No. 21 of 3 December 1985 — certain outstanding entitlements of employees are protected under the Protection of Employees (Employers' Insolvency) Act, 1984, if the insolvency of the employer occurs on or after 22 October 1983. However, as the company concerned, Lemon and Company Limited was put into receivership on 5 September 1983, it must be deemed to have become insolvent from that date. Accordingly, as the date of insolvency was prior to 22 October 1983, I explained that it was not possible to consider applications for payments under the Act to former employees of the company. As there is no other basis on which payments of outstanding entitlements could be made to the former employees, I regret that I would not see any useful purpose in entering into discussions on the lines suggested.
Comment on this
When the Protection of Employees (Employers' Insolvency) Act was going through this House a few companies were outside the limit and this side of the House made the argument that they should be given some consideration afterwards. The fund has more than sufficient resources and the Minister could give some consideration to helping those affected. Only four or five companies are involved and the money involved would be small so far as the fund is concerned, although it would be large for the individuals concerned. I ask the Minister at least to look at the matter. The Department have failed to do so. About 90 per cent of the people in this case who lost their jobs because of the closure of Lemons Sweets are still unemployed. The Minister could amend the Bill to cater for some of the companies who were outside the limit at the time. Such an amendment would get through this House in five minutes.
Comment on this
The Deputy is quite right in that the only method of making payments would be to amend the 1984 Act. As the Deputy is aware, that Act implements EC Insolvency Directive No. 80987 which stipulated the cut-off date as 22 October 1983. The only method would be to amend that Act but I think it would raise false hopes if a meeting were to take place on that basis.
Comment on this
That is a separate question in the context of the legislative programme laid down by the Government.
Comment on this
I am not saying that. It is a matter for the Government to review their legislative programme.
Comment on this
Will the Minister ask the Government to review the Act in the light of their legislative programme?