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Duffy Cahill Report – How to Avoid Another “Clery’s Situation” happening again

The recent publication of the report of two experts appointed to examine and review employee protection legislation in the context of ensuring that limited liability or restructuring are not used as a means to avoid a company’s obligations to its employees was published at the end of April by Richard Bruton TD and Ged Nash, the Minster for Business and Employment.Mr. Kevin Duffy, Chairperson of the Labour Court, and Ms. Nessa Cahill BL, a company law specialist, were given eight weeks to specifically look at situations where valuable assets in a company are separated from the operating entity, and how the position of employees can be better protected in such situations.  In addition, Minister Bruton requested the Company Law Review Group to review company law with a view to recommending ways company law could be potentially amended to ensure better safeguards for employees and unsecured creditors.Amongst the proposals set out in the Duffy Cahill report include:

  1. Remove the insolvency exception from the prohibition on implementing collective redundancies during the consultation period
  2. Place an obligation on the de facto decision maker
  3. Redress for a failure to notify and consult
  4. Recovery of assets or proceeds
  5. Statutory Injunction
  6. Enhanced redundancy payments

We will look at these proposals in more detail in our next blog. In the meantime a copy of the report is available here  with an additional link to the DJEI website for further information. 

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