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R3, the Association of Business Recovery Professionals has urged Gerry
Sutcliffe, Minister for Employment Relations and Consumer Affairs, to point out
the difficulties raised by new insolvency regulations brought in by the
Government in April.
The new regulations were intended, among other things, to clarify the position
where a transfer of employees follows the insolvency of an employer.
Instead, they have led to confusion because, R3 claims, the regulations are
drafted in such vague language that no one understands in which types of
insolvency proceedings they are intended to apply, or what their effect is
supposed to be.
The situation is further confused by contradictory guidance issued by government
departments.
Mr Sutcliffe conceded that the meaning of the regulations was not clear, but
that the scope for uncertainty would be reduced over time as case law builds up.
Ron Robinson, President of R3, commented: "What the Minister’s reply amounts to
is - yes, I know we got it wrong, but we’re going to leave it to the courts to
sort out.
"This is a wholly irresponsible approach to legislation. The Government should
have made sure it got the law right in the first place.
"We will continue to put pressure on the Government to amend this legislation.
"In the meantime, there will be an unacceptable level of uncertainty, and much
delay, while employees and creditors bear the costs of sorting out the
consequences of the Government’s incompetence and complacency.
“This is the undoubtedly the worst piece of insolvency related legislation to
come out of this Government, and the level of incompetence and complacency in
dealing with employees rights is, quite frankly, staggering."
Source:
RedAlert
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