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Minister for Enterprise, Tourism and Employment Peter Burke has commenced a measure aimed at strengthening protection for workers whose employers cease trading.
The measure expands access to the Insolvency Payments Scheme, which protects employees’ pay-related entitlements if their employer becomes insolvent.
Part of the Protection of Employees (Employers’ Insolvency) (Amendment) Act 2026, the 'Deemed Insolvent Process' is designed to support employees who are owed money by their former employer, where the employer ceased trading without formally entering liquidation, receivership, or bankruptcy.
It applies where such debts fell due on or after 8 December 2024.
Previously, access to the Insolvency Payments Scheme was contingent on the employer being legally insolvent.
Under the Deemed Insolvent Process, employees will first have to seek payment from their former employer. If the employer does not pay after eight weeks, the worker can then apply under the Insolvency Payments Scheme.
“Although not a common occurrence, affected employees now have a clear pathway to ensure they are paid their statutory entitlements including outstanding wages, holiday pay, and sick pay,” said Minister Burke.
Minister of State Alan Dillon pointed out that employers would have an opportunity to respond to claims, adding that “robust safeguards” were also in place to protect public funds.
"Importantly, a determination of ‘deemed...
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