Insolvency Fund & Back Pay

T

The Legend

Guest
Hi all,I hope I have this post in the right area.
Basically our business where I am employed is not going very well & realistically is not going to survive.I am at present owed approx €15,000 in back pay going back over the last 2 years.I am currently on a 3 day week since May '09.Because of cash flow problems I don't get paid every week.
I genuinely think the business will fold over the next few weeks,the question I have is I know we can claim our full redundancy from the Insolvency fund,but I have been reading that you can also claim unpaid wages,does this apply to limited companies only or does it apply to anybody?Because of being on a 3 day week since May '09 I haven't made any PRSI contributions only paid levies & USC charges.
Thanks in advance for any advice.
The Legend
 
Your post is not clear. Is this your own business?

This is from Citizens Information: http://www.citizensinformation.ie/e...edundancy/redundancy/redundancy_payments.html

Employers' insolvency legislation

The Protection of Employees (Employers' Insolvency) Acts 1984 - 2004 protect certain outstanding entitlements relating to the pay of employees in the event of their employers becoming insolvent as defined in the Acts.
Subject to certain limits and conditions (including statutory time limits), money due to employees in a range of situations may be paid by the Department of Social Protection out of the Social Insurance Fund. Instances where the Department may pay from this fund include circumstances where money due as a result of:
  • Arrears of pay (including arrears of pay due under an Employment Regulation Order)
  • Holiday and sick pay
  • Entitlements under the minimum notice and terms of employment, employment equality and unfair dismissals legislation
  • Court orders in respect of wages, holiday pay or damages at common law for wrongful dismissal.
The Insolvency Payments Scheme also protects employees' outstanding contributions to occupational pension schemes which an employer may have deducted from wages but not paid into the schemes. Unpaid contributions to an occupational pension scheme on an employer's own account may also be paid from the Fund, subject to certain limits. The Scheme applies to outstanding pension contributions for up to a year prior to the date of insolvency.
The Scheme covers employees who are over 16 years of age and are in employment which is insurable for all benefits under the Social Welfare Acts and includes those over 66 years of age who are in employment which, but for their age, would be insurable for all benefits under the Social Welfare Acts.
Click to expand...

You should phone NERA 1890 808090 to confrim what the position is, but if this is your own business that you're talking about then you will not get anything.
 
Thanks for your reply Ildánach,no I'm not self employed,but working in a family business that is not a limited company,I'll give the number you supplied a ring & see if they can answer my query.
 
Depending on the circumstances of the family business, regardless of how you have considered yourself, you may be considered by the Revenue and/or social insurance fund to be self-employed, or perhaps even just a volunteer!!!!

You say you haven't been making PRSI contributions? Has the business been making the employer and employee contributions? If not, then the businesss has been breaking the law and could be liable for prosecution and fines (or alternatively, and this is perhaps the way that they will look at it will be that no contributions were being paid because you were not earning any wages and are therefore not entitled to any backpay!)

I'd be interested to hear what NERA advise.
 
Thanks Ildánach for your advice,as you said my post wasn't clear with exact details so I wrote down as much details as possible before ringing NERA.
Basically i am an employee since 1991(working for my uncle).
Over the last 2 years i have been on reduced working hours(3 days a week).
Like a lot of business cash flow has been very tight & there is arrears in payment due to me.
Redundancy is probably going to be given (forced on us) over the next few weeks,The business won't be able to pay this so it will have to be claimed from the insolvency fund.
I suppose my original question was could I also claim the arrears from the insolvency fund.
After talking to NERA I cannot make this claim unless the business becomes insolvent.
Any complaints about non payment of wages have to be made within 6 months of when payment is due.
So end result is I'll loose out on the money due to me.
Now Ildánach as regards your query about the revenue & social welfare,the business has made their PRSI contributions(thankfully!!) & the revenue was not something I had even thought about(just something else to worry/think about now!!!).
 
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