by Anne Lyne , Martin McKiernan May-29-2025 in Employment Law

Background

Following a pre-election commitment, the Minister for Enterprise, Trade and Employment, Minister Peter Burke TD, has moved legislation in Dáil Éireann to strengthen the protection of workers pay-related entitlements if their employer becomes insolvent.

The Minister announced the Protection of Employees (Employers’ Insolvency) (Amendment) Bill 2025 on 1 May 2025, which is also known as International Workers Day.

This bill forms part of the Government’s Spring legislative programme.

What will the new legislation do?

In its current format, the bill seeks to:

  • Expand access to the Insolvency Payment Scheme to employees of employers who cease trading without entering liquidation, receivership or bankruptcy;
  • Allow a route for employees to seek redress, who may have claims from October 1983 up to the commencement of the bill;
  • Ensuring those who are employed by sole traders are included and captured within the legislation; and
  • Applies a ceiling of €600 per week for all claims for payment from the Insolvency Payments Scheme.

Principally, the new legislation will amend sections of the Protection of Employees (Employers’ Insolvency) Act 1984. However, in addition to this, the bill also will amend the Employment Equality Acts 1998 to ensure that any award for gender discrimination is covered as “relevant compensation” that may be claimed for as a debt.

On the Minister’s departmental website, it also states that this bill will address a 2018 judgment that found Ireland had not fully transposed European Directive 2009/94/EC.

Legislative progress

The bill is currently at first stage and there has been no indication as to when it is expected to complete its way through the Oireachtas.

Key points to consider

  • Current and historic claims will be captured under the legislation, impacting on future and previous scenarios.
  • Strengthens an employee’s position to seek some form of financial redress if their employer ceases trading.
  • This bill adds to the existing protections that are in place for employees and compliments the existing framework.
  • Claims from an insolvent employer are never guaranteed and an employee should always take advice before making any representations to the Insolvency Payments Scheme.
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About the Authors

Anne Lyne
Anne Lyne

Anne is a partner and leads the Employment Law team at Hayes solicitors advising on the full range of employment related issues.

Anne understands that if an employment related issue arises that responsiveness and practical assistance are key for clients. Anne and the team are available for clients to ensure that matters are addressed promptly.

 

Martin McKiernan
Martin McKiernan

Martin works within the Employment Law team and qualified in Northern Ireland in September 2020, after training with one of the region’s top commercial law firms.

Since qualification, Martin has gained experience in advising a wide variety of clients, across different sectors on a variety of contentious and non-contentious HR and employment law matters.