Protection of Employees (Employers' Insolvency) Act, 1984
In short
This law protects employees when their employer becomes insolvent, ensuring they receive certain payments and benefits they are owed. It establishes rights for employees in such situations and amends other laws related to employee rights.
What it regulates
- The rights of employees when their employer becomes insolvent.
- The definition of employer insolvency for the purposes of this Act.
- The Redundancy Fund, renaming it the Redundancy and Employers' Insolvency Fund.
- The payment of unpaid contributions to occupational pension schemes.
Who it concerns
- Employees whose employers become insolvent.
- Employers who become insolvent.
Key points
- An employer is considered insolvent if they are adjudicated bankrupt, file for arrangement, execute a deed of arrangement, die with an insolvent estate, or if a company is wound up or has a receiver appointed.
- The Act applies to employees in employment insurable for all benefits under the Social Welfare Acts, 1981 to 1984.
- The Minister can appoint a person to perform the functions of a "relevant officer" (like an executor or liquidator) in certain insolvency cases.
- Employees can apply to the Minister for payments if their employer is insolvent and they meet the Act's criteria.
Legal text
Protection of Employees (Employers' Insolvency) Act, 1984 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.
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- ie)Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(
- s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1984 Protection of Employees (Employers' Insolvency) Act, 1984 Protection of Employees (Employers' Insolvency) Act, 1984 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Revised Act Acht Athbh… Print Full ActPriontáil an tAcht Iomlán Number 21 of 1984 PROTECTION OF EMPLOYEES (EMPLOYERS' INSOLVENCY) ACT, 1984 ARRANGEMENT OF SECTIONS Section 1. Interpretation. 2. Redundancy and Employers' Insolvency Fund. 3. Application of Act. 4. Insolvency for the purposes of Act. 5. Appointment in certain circumstances of persons to perform functions assigned by Act to relevant officers. 6. Employees' rights on insolvency of employer. 7. Payment of unpaid contributions to occupational pension scheme. 8. Minister may require certain information and documents. 9. Complaints to Tribunal. 10. Transfer to Minister of certain rights and remedies. 11. Power to amend Act. 12. Amendment of section 4 of Act of 1967. 13. Amendment of section 3 of and First Schedule to Act of 1973. 14. Institution of proceedings for offence. 15. Offences. 16. Regulations. 17. Expenses, etc. 18. Short title and collective citations. Acts Referred to Deeds of Arrangement Act, 1887 1887, c. 57 Preferential Payments in Bankruptcy (Ireland) Act, 1889 1889, c. 60 Industrial Relations Act, 1946 1946, No. 26 Companies Act, 1963 1963, No. 33 Redundancy Payments Act, 1967 1967, No. 21 Minimum Notice and Terms of Employment Act, 1973 1973, No. 4 Holidays (Employees) Act, 1973 1973, No. 25 Anti-Discrimination (Pay) Act, 1974 1974, No. 15 Unfair Dismissals Act, 1977 1977, No. 10 Employment Equality Act, 1977 1977, No. 16 Redundancy Payments Act, 1979 1979, No. 7 Social Welfare (Consolidation) Act, 1981 1981, No. 1 Social Welfare Acts, 1981 to 1984 Number 21 of 1984 PROTECTION OF EMPLOYEES (EMPLOYERS' INSOLVENCY) ACT, 1984 AN ACT TO CONFER, ON THE INSOLVENCY OF EMPLOYERS, CERTAIN RIGHTS ON EMPLOYEES, TO AMEND CERTAIN ENACTMENTS RELATING TO THE RIGHTS OF EMPLOYEES AND TO PROVIDE FOR OTHER MATTERS (INCLUDING OFFENCES) CONNECTED WITH THE MATTERS AFORESAID. [30th November, 1984] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: Interpretation. 1.—
- a)pay in respect of a holiday actually taken; or (
- b)any holiday pay which had accrued at the date of the termination of the employee's employment and which, had his employment with the employer continued until he became entitled to a holiday, would under the employee's contract of employment in the ordinary course have become payable to him on becoming so entitled; “the Minister” means the Minister for Labour; “occupational pension scheme” means any scheme or arrangement which, forming part of a contract of employment, provides or is capable of providing, in relation to employees in any description of employment, benefits (in the form of pensions or otherwise) payable to or in respect of any such employees on the termination of their employment or on their death or retirement; “prescribed” means prescribed by regulations under this Act; “relevant officer” means an executor, an administrator, the official assignee or a trustee in bankruptcy, a liquidator, a receiver or manager, or a trustee under an arrangement between an employer and his creditors or under a trust deed for his creditors executed by an employer; “the Tribunal” means the Employment Appeals Tribunal.
- a)he has been adjudicated bankrupt or has filed a petition for or has executed a deed of, arrangement (within the meaning of section 4 of the Deeds of Arrangement Act, 1887 ); or (
- b)he has died and his estate, being insolvent, is being administered in accordance with the rules set out in Part I of the First Schedule to the Succession Act, 1965 ; or (
- c)where the employer is a company, a winding up order is made or a resolution for voluntary winding up is passed with respect to it, or a receiver or manager of its undertaking is duly appointed, or possession is taken, by or on behalf of the holders of any debentures secured by any floating charge, of any property of the company comprised in or subject to the charge, or (
- d)he is an employer of a class or description specified in regulations under section 4
- a)where the employer has been adjudicated bankrupt, the date of such adjudication, (
- b)where the employer petitioned for arrangement, the date on which the petition is filed, (
- c)where the employer executed a deed referred to in section 1
- a)of this Act, the date of such execution, (
- d)where the employer has died, the date of his death, (
- e)where the employer is a company within the meaning of section 2 of the Companies Act, 1963 — (
- i)in case either a receiver is appointed on behalf of the holder of any debenture secured by a floating charge, or possession is taken by or on behalf of such a debenture holder of any property of the company comprised in or subject to the charge, the date of the appointment of the receiver or possession being taken as aforesaid, as may be appropriate, or (
- ii)in any other case the date which, in relation to the company, is the relevant date within the meaning of section 285 of the Companies Act, 1963 , and (
- f)where the employer is an employer of a class or description specified in regulations under subsection
- d)of this Act, an employer becomes insolvent for the purposes of this Act, or (
- b)an employer otherwise becomes insolvent for such purposes and there is not for the time being in relation to the insolvency a relevant officer, the Minister may appoint as regards such insolvency a person under this subsection.
- a)the functions assigned by this Act to a relevant officer shall, as regards the employer concerned, be performed by, and only by, the person to whom the appointment relates, or, if through illness or because his appointment is revoked or for any other reason the person so appointed is unable to perform such functions, another person so appointed, and (
- b)for so long as the appointment remains in force, each of the references to a relevant officer in sections 6 , 7 and 8 of this Act shall be construed as including a reference to the person to whom the appointment relates. Employees' rights on insolvency of employer. 6.—
- a)the person by or on whose behalf the application is made (which person is in this section subsequently referred to as “the applicant”) is a person to whom this Act applies, and that he was employed by an employer who has become insolvent, and (
- b)the date on which the employer became insolvent is a day not earlier than the 22nd day of October, 1983, and (
- c)on the relevant date the applicant was entitled to be paid the whole or part of any debt to which this section applies, the Minister shall, subject to this section, pay to or in respect of the applicant out of the Redundancy and Employers' Insolvency Fund the amount which, in the opinion of the Minister, is or was due to the applicant in respect of that debt.
- a)Subject to paragraph (
- b)of this subsection, the following are debts to which this section applies— (
- i)any arrears of normal weekly remuneration in respect of a period, or of periods in the aggregate, not exceeding eight weeks, and to which the applicant became entitled during the relevant period, (
- ii)any arrears due, in respect of a period or periods not exceeding eight weeks in all under a scheme or arrangement which, forming part of an employee's contract of employment, provides or is capable of providing in relation to employees in any description of employment, payments payable to any such employees in respect of periods during which they are unable to fulfil their contract of employment due to ill health and to which the applicant became entitled during the relevant period, (iii) any amount which an employer is required to pay, by virtue of an award under section 12 of the Act of 1973 made not earlier than the commencement of the relevant period, either for the period of notice required by section 4 of the Act of 1973 or by reason of a failure by him to give the period of notice required by the said section 4, (
- iv)any holiday pay in respect of a period or periods of holiday not exceeding eight weeks in all, and to which the applicant became entitled during the relevant period, (
- v)any amount which an employer is required to pay by virtue of a determination under section 8
- a)of the Employment Equality Act, 1977 , (
- x)a fine imposed under section 8
- c)(
- i)or paragraph (
- a)(inserted by section 30 of the Employment Equality Act, 1977 ) of section 9
- a)(iii) of the Employment Equality Act, 1977 , and (
- xi)compensation directed to be paid under section 10
- d)(iii) of the Employment Equality Act, 1977 . (
- b)Any amount, damages, fine or compensation referred to in subparagraph (viii), (ix), (
- x)of paragraph (
- a)of this subsection shall be regarded as being a debt to which this section applies if, and only if, the relevant recommendation, decision, determination, award or order was made during, or after the expiration of, the relevant period.
- a)legal proceedings are instituted by or on behalf of an employee and on foot of all or any of the following— (
- i)a claim for arrears described in subparagraph (
- i)or (
- ii)of subsection
- ii)a claim for holiday pay described in subparagraph (
- iv)of the said subsection
- ii)or (iii) of paragraph (
- a)of this subsection he would have satisfied the requirements of paragraphs (a), (
- b)and (
- c)of the said subsection
- a)of this section, there shall be paid out of the Redundancy and Employers' Insolvency Fund, to or in respect of the employee, an amount equal to— (
- i)the amount of the award, or (
- ii)the maximum which would have been payable out of the said Fund by virtue of this Act had the employee successfully sought redress under section 8
- a)(
- ii)of this section as regards a particular period, shall not exceed the difference between the amount of any disability benefit or injury benefit payable under the Act of 1981 to the employee concerned as regards the period (together with, in either case, the amount of any pay-related benefit payable to such employee under the Act of 1981 as regards the period) and the amount of his normal weekly remuneration as regards the period. (
- c)(
- i)A payment shall not be made under this section in respect of an amount which an employer is required to pay by virtue of a determination having been made under section 8
- a)a period of six months has elapsed since the application for a payment under this section was received by the Minister, but no such payment has been made, (
- b)the Minister is satisfied that a payment under this section should be made, and (
- c)it appears to the Minister that there is likely to be further delay before he receives a statement referred to in subsection
- a)there was an agreement between the applicant and the employer concerned that the whole or any part of the debt would be the subject of an application under this section, and (
- b)when the agreement was made such employer had the means to pay such debt or the part thereof, the Minister may either refuse the application or disallow it in so far as it relates to such debt or part.
- a)of this section, the date on which the relevant employer became insolvent or the date on which the relevant recommendation, decision, determination, award or order is made, whichever is the later, (
- b)in relation to any other debt to which this section applies— (
- i)in case the relevant applicant's employment is terminated as a result of the relevant employer's insolvency, the date on which such employer became insolvent, or the date of such termination, whichever such applicant shall as regards the debt nominate, or (
- ii)in any other case, the date on which such employer became insolvent; “the relevant period” means in relation to a debt to which this section applies, the period of eighteen months immediately preceding the relevant date.
- a)an employer (being in case the application is made by a person otherwise than in his capacity as the person competent so to act the employer of the applicant) has become insolvent, (
- b)the date on which for the purposes of this Act the employer became insolvent is a day not earlier than the 22nd day of October, 1983, and (
- c)on that day there remained unpaid relevant contributions remaining to be paid by the employer to the scheme, on the date on which the employer became insolvent, being a date not earlier than the said 22nd day of October the Minister shall, subject to this section, pay into the assets of the scheme out of the Redundancy and Employers' Insolvency Fund the sum which in his opinion is payable in respect of the unpaid relevant contributions.
- a)the balance of relevant contributions remaining unpaid on the date on which he became insolvent and payable by the employer on his own account to the scheme in respect of the period of twelve months ending on the day immediately preceding that date, (
- b)the amount certified by an actuary to be necessary for the purpose of meeting the liability of the scheme on dissolution to pay the benefits provided by the scheme to or in respect of the employees of the employer.
- a)a period of six months has elapsed since the application for a payment under this section was received by the Minister, but no such payment has been made, (
- b)the Minister is satisfied that a payment under this section should be made, and (
- c)it appears to the Minister that there is likely to be further delay before he receives a statement or certificate about the contributions in question, then, the Minister may, if the applicant so requests or, if the Minister thinks fit, without such a request, make a payment under this section, notwithstanding the fact that no statement or certificate referred to in subsection
- a)the employer concerned, or, in case a relevant officer is or is required to be appointed, that officer, to provide him with such information as the Minister may reasonably require for the purpose of determining whether the application is well-founded, and (
- b)any person having the custody or control of any relevant record kept and retained pursuant to section 10 of the Holidays (Employees) Act, 1973 , or any register, card, wages sheet, record of wages or other document which an officer of the Minister may reasonably consider to be relevant to the application to produce to such officer such document for examination by him.
- a)of that section may within the period of six weeks beginning on the day on which the decision of the Minister on the application was communicated to him or, if that is not reasonably practicable, within such further period as the Tribunal considers reasonable, present a complaint to the Tribunal that— (
- a)the Minister has failed to make any such payment; or (
- b)any such payment made by the Minister is less than the amount which should have been paid.
- a)section 4 of the Preferential Payments in Bankruptcy (Ireland) Act, 1889; or (
- b)section 285 , as amended by section 10 of the Companies (Amendment) Act, 1982, of the Companies Act, 1963 , and the Minister shall be entitled to be so paid in priority to any other unsatisfied claim of the employee concerned being a claim which, but for this subsection, would be payable to the employee in such priority; and in computing for the purposes of any of the provisions of the said section 4 or the said section 285, as so amended, any limit on the amount of sums to be paid, any sums paid to the Minister shall be treated as if they had been paid to the employee.
- a)extend the application of this Act to employees who are of a class or description specified in the order, (
- b)exclude from such application employees who are of a class or description so specified.
- a)(
- ii)or
- a)(
- iv)a different number of weeks, (
- b)substitute for the number of months specified in the definition of “the relevant period” contained in subsection
- a)in case an order under this section amending that Schedule is for the time being in force, that Schedule as amended by section 20 of the Act of 1977, by section 13 of this Act and by the order, (
- b)in case no such order is so in force, that Schedule as amended both by the said section 20 and the said section 13 .
- b)the substitution of “eighteen hours” for “twenty-one hours” in paragraph 8 of the First Schedule; and the said paragraphs (
- a)and 8, as so amended, are set out in paragraphs 1 and 2, respectively, of the Table to this section. TABLE 1. (
- a)employment of an employee who is normally expected to work for the same employer for less than eighteen hours in a week. 2. 8. Any week in which an employee is not normally expected to work for at least eighteen hours or more will not count in computing a period of service. Institution of proceedings for offence. 14.—Proceedings for an offence under section 15 of this Act shall not be instituted except by or with the consent of the Minister. Offences. 15.—
- a)knowingly makes any false statement or false representation or knowingly conceals a material fact, or (
- b)produces or furnishes, or causes or knowingly allows to be produced or furnished, any document or information which he knows to be false in a material particular, he shall be guilty of an offence.