Cuisine Design: Exercise of ministerial discretion under the temporary insolvency payments scheme

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A decision made on 15 December 2009 regarding the exercise of ministerial discretion under the temporary insolvency payments scheme in relation to Cuisine Design

Decision Reference: MD-S-2009-0071
Decision Summary Title :	DS - Cuisine Design		Date of Decision Summary:	8 December 2009
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 - Cuisine Design		Date of Written Report:	8 December 2009
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Exempt under 3.2.1 (a)i
Subject: Exercise of Ministerial discretion under the Temporary Insolvency Payments Scheme
Decision(s): The Minister decided, having consulted the Viscount, to exercise the discretion granted to him via an extension to the Temporary Insolvency Scheme so that that the former employees of Cuisine Design (2006) Limited are eligible to apply for compensatory payment under that scheme.
Reason(s) for Decision: The Temporary Insolvency scheme (R.44/2009) was extended (via P.67/2009) to give the Social Security Minister the discretion, in wholly exceptional circumstances, to make compensatory payments to employees where an employer has not yet been declared as formally insolvent, but has ceased trading. Discretion may be applied where the Minister is reasonably satisfied, having consulted the Viscount, that the employer will become subject to formal insolvency proceedings, or that related proceedings have commenced. The Minister is reasonably satisfied in the case of Cuisine Design (2006) Limited that the company will become subject to formal insolvency proceedings and that the circumstances are wholly exceptional such that the temporary insolvency scheme should be extended to the affected employees of that company without delay.
Resource Implications: Subject to the claims being validated and the two employees being eligible, the sum involved is a maximum of £4,500. Compensatory payments are funded by a grant from the States Treasury.
Action required: Policy principal to request the Social Security Work Zone to process the claims for compensatory payment from the former employees of Cuisine Design (2006) Limited.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):