A recent judgement of with regard to the employer’s insolvency fund has resulted in the successful plaintiff obtaining a damages award on the basis of the failure of the Irish government to bring into effect the directive governing companies that have ceased to trade. This judgement has important implications in relation to many employees may have recovered employment law compensation awards arising from businesses that went bust during the recession. Often many companies are not actually formally wound up or liquidated and this has created a gap in the law whereby unless the company was legally wound up by some formal legal process under the Companies Acts and proven to be clearly insolvent (unable to pay its debts) the person may have recovered compensation but in effect had no way of collecting it because the company wasn’t formally wound up.

The Irish government will have to bring in amending legislation to cover the gap if doesn’t this judgement is of considerable benefit to people who may have a outstanding compensation awards and have yet to make claims against the insolvency fund or have unsatisfied claims,

If you have any queries arising out of this blog please do not hesitate to contact Peter Connolly solicitor for any queries regarding employment law advices or litigation in general.

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