Protection of Employees (Employers’ Insolvency) (Amendment) Act 2026

Amendment of section 6 of Principal Act

7. Section 6 of the Principal Act is amended—

(a) by the insertion of the following subsections after subsection (1):

“(1A) Where an application under subsection (1) relates to an employer deemed insolvent under section 4E or 4F, the application shall be accompanied by a statutory declaration of the applicant stating that all particulars in the application are true to the best of the applicant’s knowledge and belief.

(1B) Where an application under subsection (1) relates to an employer who has become insolvent in the circumstances referred to in section 1(3)(i)—

(a) the application shall be accompanied by—

(i) a copy of the insolvency arrangement, and

(ii) a copy of the court order relating to the insolvency arrangement,

and

(b) the Minister shall not make a payment to the applicant—

(i) in respect of any amount paid, or to be paid, to the applicant under the insolvency arrangement, or

(ii) in respect of any debt that is not specified in the insolvency arrangement.

(1C) Where—

(a) an application under subsection (1) relates to an amount referred to in subparagraph (i), (ii), (iii)(III) or (iv) of subsection (2)(a), and

(b) the employer disputes the amount, or any part of the amount, under section 4D(3)(b),

the Minister shall not pay the disputed amount or the disputed part of the amount, as the case may be, under subsection (1).

(1D) Where an application under subsection (1) relates to an employer deemed insolvent under section 4F, the Minister shall not make a payment to an applicant under this section—

(a) in respect of a debt to which subsection (2), as that subsection stood on the relevant date, did not apply, or

(b) in respect of an award that was not referred to in subsection (3) as that subsection stood on the relevant date.”,

(b) in subsection (2)(a)(iii)—

(i) by the substitution of “at the election of the employee, one of the following” for “at the election of the employee, either”,

(ii) in clause (I), by the substitution of “the said section 4,” for “the said section 4, or”,

(iii) in clause (II), by the substitution of “Act of 1973, or” for “Act of 1973,”, and

(iv) by the insertion of the following clause after clause (II):

“(III) in the case of an employer deemed insolvent under section 4E or 4F, any unpaid normal weekly remuneration due to the employee in lieu of the statutory notice prescribed in section 4 of the Act of 1973,”,

(c) in subsection (3), by the substitution of “subject to paragraphs (a) and (aa) of subsection (4)” for “subject to subsection (4)(a)”,

(d) in subsection (4)—

(i) by the substitution of the following paragraphs for paragraph (a):

“(a) An amount payable to an employee in respect of any debt mentioned in subsection (2) or award mentioned in subsection (3) shall not exceed €600 in respect of any one week.

(aa) Where, in relation to a debt mentioned in subsection (2) or award mentioned in subsection (3)—

(i) the normal weekly remuneration of an employee to whom the debt or award is payable exceeds the euro amount specified in paragraph (a),

(ii) the debt or award relates to a period other than one week, or

(iii) the debt or award is not expressed in relation to a period of time,

the amount payable to the employee in respect of the debt or award—

(I) shall, in relation to a debt referred to in any of the following provisions of subsection (2)(a):

(A) subparagraph (i);

(B) subparagraph (ii);

(C) clause (II) or (III) of subparagraph (iii);

(D) subparagraph (iv),

be calculated in accordance with the following formula:

C(A/B)

where—

‘A’ is the amount of the debt mentioned in subsection (2) or the amount of the award mentioned in subsection (3), as the case may be,

‘B’ is the normal weekly remuneration of the employee, and

‘C’ is the euro amount specified in paragraph (a),

(II) shall be calculated in accordance with the following formula where the remuneration of the employee is recorded in the written record:

C(A/B)

where—

‘A’ is the amount of the debt mentioned in subsection (2) or the amount of the award mentioned in subsection (3), as the case may be,

‘B’ is the remuneration per week so recorded or, where the remuneration so recorded relates to a period other than a week, an amount bearing the same proportion to the remuneration recorded as the period of time to which the remuneration recorded relates bears to a week, and

‘C’ is the euro amount specified in paragraph (a),

and

(III) shall be calculated in accordance with the following formula where the written record does not record the remuneration of the employee:

C(A/B)

where—

‘A’ is the amount of the debt mentioned in subsection (2) or the amount of the award mentioned in subsection (3), as the case may be,

‘B’ is the normal weekly remuneration of the employee, and

‘C’ is the euro amount specified in paragraph (a).

(ab) In this section—

(i) a reference to the euro amount specified in paragraph (a) shall, where such amount stands varied by regulation under section 11(5), be read as a reference to the amount as so varied, and

(ii) a reference to the written record shall be read, in relation to a debt mentioned in subsection (2) or award mentioned in subsection (3), as a reference to the written recommendation, decision, determination, award or order, as the case may be, relating to the debt or award.”,

and

(ii) in paragraph (b), by the substitution of the following for “the amount of his normal weekly remuneration as regards the period.”:

“the lesser of—

(i) the amount of the employee’s normal weekly remuneration as regards the period, or

(ii) the amount that would, but for this section, be payable to the employee in accordance with paragraph (a) or (aa), as the case may be.”,

and

(e) in subsection (9)—

(i) in the definition of “normal weekly remuneration”, by the substitution of “a reference to the relevant date or, where the relevant date falls after the date of termination of employment, the date of termination of employment” for “a reference to the relevant date”,

(ii) in the definition of “the relevant date”, by the insertion of the following paragraphs after paragraph (aa):

“(ab) in relation to an employer deemed insolvent under section 4E, the date on which notice is served on the employer under section 4A,

(ac) in relation to an employer deemed insolvent under section 4F, the date referred to in section 4F(4)(a)(ii),

(ad) in relation to an employer who has become insolvent in the circumstances referred to in section 1(3)(i)—

(i) the date on which the insolvency arrangement comes into effect or the date of termination of employment nominated in accordance with section 4(1)(k), as the case may be, or

(ii) where no such nomination is made, the date on which the insolvency arrangement comes into effect.”,

and

(iii) by the substitution of the following definition for the definition of “the relevant period”:

“ ‘the relevant period’ means, in relation to a debt to which this section applies—

(a) in the case of an employer that is deemed to be insolvent under section 4F, the period of 30 months immediately preceding the relevant date, and

(b) in any other case, the period of 18 months immediately preceding the relevant date.”.