Protection of Employees (Employers' Insolvency) (Amendment) Bill 2025: Second Stage
Seanad Éireann — 2026-03-04
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Linda Nelson Murray (FG), Industrial and Commercial Panel

I thank the Minister of State for being here today. Sometimes when we get opening speeches, I find them hard to follow and understand. The Minister of State's opening statement very much explained what we are talking about today in an informative way for businesses and employees.
Rather than going through a lot of what was said, I will set out a few points myself. The Protection of Employees (Employers' Insolvency) (Amendment) Bill 2025 is important because it provides greater protection for employees in the event of their employer's insolvency, ensuring they can access pay-related entitlements. It amends the insolvency payments scheme, as the Minister of State mentioned, allowing employees to claim for arrears of wages, holiday pay and other entitlements owed by insolvent employers. It addresses historical entitlements not previously covered, rectifying a 40-year gap in Irish law in the protection of employees. It establishes a legal mechanism for employees to seek financial redress if their employer ceases trading, thereby enhancing their rights and protections. This legislation is crucial for safeguarding employee rights and ensuring they receive the benefits they are owed in the event of the employer's insolvency.
I will give an example. We have Linda's Florist, a small flower shop employing four staff that suddenly shuts because Linda, the owner, becomes seriously ill and cannot continue operating. The owner never formally goes into liquidation; she simply locks the shop and stops trading. In a situation like this, what would have happened under the old system without this Bill? The employees would have been stuck. They could not have claimed unpaid wages from the State because the employer had not legally entered insolvency. They might have lost important holiday pay, unpaid minimum notice and other entitlements that were unpaid. What happens under this Bill, though, is that each employee will send the owner, Linda, a prescribed notice listing money owed, for example, three weeks' pay or holiday pay. If nothing is paid within eight weeks, that person would apply to the Minister for Enterprise, Tourism and Employment to have the employer deemed insolvent. When the employer is deemed insolvent, employees gain full access to the insolvency payment scheme, which reimburses them for unpaid wages, holiday pay, unpaid minimum notice and pension arrears up to €600 per week. The State pays these entitlements directly through the Social Insurance Fund. The outcome will be that the staff in Linda's Florist would recover much of what they are owed, even though the owner never entered a formal insolvency process. I am delighted this legislation has passed through all the relevant Stages so far and I welcome the legislation coming to the House today.

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Retrieved: 2026-08-14T04:54:43+00:00
Sitting date: 2026-03-04