The Social Security Minister today released a White Paper making proposals for a statutory Insolvency Payments Scheme.

The proposed scheme would ensure that employees promptly receive a reasonable amount of compensation where they are owed money by their former employer following the insolvency of a business.

The introduction of such a scheme has been a matter of public and political debate in Jersey since 1993 and was widely consulted upon by the Employment Forum in 2006.

Social Security Minister, Deputy Ian Gorst, said “I am pleased to be able to present these proposals. We have undertaken a great deal of research on insolvency issues this year and we have learned from our experience of the current Temporary Insolvency Scheme. The proposals for this formal scheme have a wider scope than the Temporary Scheme.”

The proposed insolvency scheme would not only compensate employees for statutory notice pay owed, but also for unpaid wages, holiday pay owed, unpaid pension contributions, and statutory redundancy pay when the new law giving employees redundancy rights is introduced in 2010. Payments from the scheme would be subject to an overall maximum sum per claim.

Any member of the public is welcome to comment and views are invited on the proposals set out in the White Paper.

Interested parties are asked to submit their views to the Social Security Minister by Friday 5 February 2010.

The White Paper is available on the States website

Copies of the White Paper may also be obtained from Kate Morel, or 447204. –

For more information, please contact Kate Morel, Policy Principal on 447203.