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Insolvency: Temporary Scheme for Compensatory Payment - Extension

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 14 June 2011 regarding:

Decision Reference: MD-S-2011-0046

Decision Summary Title :

DS - Insolvency Discretion Extended

Date of Decision Summary:

9 June 2011

Decision Summary Author:

Policy Principal

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

WR - Insolvency Discretion Extended

Date of Written Report:

9 June 2011

Written Report Author:

Policy Principal

Written Report :

Public or Exempt?

 

Public

Subject: Insolvency: Temporary scheme for compensatory payment in lieu of statutory period of notice on termination of employment - Extension

Decision(s): The Minister decided to amend the Temporary Insolvency Payments Scheme (R.44/2009) retrospectively so that; "in wholly exceptional circumstances, where the employer has ceased trading, but has not become subject to formal insolvency proceedings, the Minister will give consideration, in consultation with the Viscount, to making compensatory payments under the Scheme where he is reasonably satisfied that the employer will not recommence trading, and that a court judgment has been taken against the employer.”

Reason(s) for Decision: The Minister for Social Security believes that discretion should be extended under the Temporary Insolvency Payments Scheme that would entitle employees to claim compensatory notice payments in appropriate circumstances where statutory notice pay is owed to those employees.

Resource Implications: There will be an additional cost to the States as more claims will be accepted by the Social Security Department, but the sum cannot be quantified until the Minister has exercised this discretion and employee’s claims have been received. The Minister is aware of a small number of employers who ceased trading during 2010 without formal insolvency proceedings ensuing and the Minister will consider extending the scheme retrospectively in respect of affected employees. 

Action required: Policy Principal to request that the Greffier of the States arrange for the amendment to the Report to be presented to the States at the earliest opportunity.

Signature:

 

 

Position:

Minister

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

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