11 May 2010
The Social Security Minister has today (11 May 2010) released a report which summarises the outcomes of his recent White Paper proposing a statutory Insolvency Payments Scheme.
The scheme would ensure that employees promptly receive reasonable compensation should they be owed money by their former employer following the insolvency of a business.
Consultation was undertaken from December 2009 to February 2010 and the White Paper was circulated to more than 80 consultees, as well as all States Members.
8 of the 10 respondents stated that they supported and endorsed the proposals in general and none of the respondents were opposed to the broad proposals of the scheme. Other than minor changes relating to the administration of the scheme, the scheme will go forward as proposed in the White Paper.
The Minister will shortly request law drafting with the intention of preparing draft legislation by the end of 2010.
Minister for Social Security, Deputy Ian Gorst, said “A great deal of research on insolvency issues has been undertaken. Although only 10 formal responses were received during consultation, I recognise that this is a very specialised area. Relevant experts in the field, including the Viscounts Department, local Insolvency Practitioners and the Jersey Advisory and Conciliation Service were involved with the development of the proposals. I am therefore confident that the proposals being put forward are appropriate and well thought through. We have also had the experience of running the temporary insolvency scheme since February 2009.”
Copies of the report may also be obtained from Kate Morel, firstname.lastname@example.org or 447203.
Summary of responses to the White Paper