Amendment to P.34/2009: Payment of Statutory Notice Payments: Establishment of Precedent.

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A decision made (16/03/2009) regarding: Amendment to P.34/2009: Payment of Statutory Notice Payments: Establishment of Precedent.

Decision Reference: MD-S-2009-0013
Decision Summary Title :	L:\General Information\Workgroups\Policy\Employment\Ministerial decisions\DS P34 Amendment 16Mar09		Date of Decision Summary:	16 March 2009
Decision Summary Author:	Kate Morel, Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	L:\General Information\Workgroups\Policy\Employment\Ministerial decisions\WR P34 Amendment 16Mar09		Date of Written Report:	16 March 2009
Written Report Author:	Kate Morel, Policy Principal		Written Report : Public or Exempt?	Public
Subject: Amendment to P34/2009: Payment of Statutory Notice payments: establishment of precedent.
Decision(s): The Minister approved the proposed amendment to P34/2009: Payment of Statutory Notice payments: establishment of precedent, to be presented to the States at the earliest opportunity.
Reason(s) for Decision: To enable the Minister’s proposed amendment to P34/2009: Payment of Statutory Notice payments: establishment of precedent, to be presented to the States.
Resource Implications: If the States adopt the proposed amendment to the effective date of the application of the precedent, the financial and manpower implications may be less significant than if the proposition were adopted without the amendment.
Action required: Kate Morel to forward the proposed amendment to the States Greffe and request that it be presented to the States at the earliest opportunity.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Amendment to P.34/2009: Payment of Statutory Notice Payments: Establishment of Precedent.

Payment of Statutory Notice payments: establishment of precedent p.34/2009 - AMENDMENT

1 PAGE 2 –

Paragraph (b) - For the date “1st December 2008” substitute the date “4 February 2009”.

2 PAGE 2 –

Paragraph (b) - For the words “the Employment (Amendment No. 5) (Jersey) Law 200- relating to redundancy comes into force” substitute the words “an Insolvency Scheme is in place”.

REPORT

The Report which accompanies the Proposition does not explain why the precedent set by the States decision to support P.9/2009 would apply from 1 December 2008. Paragraph (a) of the Proposition itself notes that the decision of the States setting this precedent was made on 4 February 2009. The Social Security Minister considers that the precedent can not apply to cases of insolvency that occurred prior to the date on which the States decision was made.

The Report does not explain why a system of payments should remain in place only until legislation introducing statutory redundancy has been enacted. The redundancy legislation will not make provisions relating to insolvency and would not protect an employee’s entitlement to a notice payment where their employer has become insolvent. The Social Security Minister is concerned that the interim system of payments that he is putting in place should be maintained until a statutory insolvency scheme is in place.

Financial/Manpower Implications

If the States adopt the proposed amendment to the effective date of the application of the precedent, the financial and manpower implications may be less significant than if the proposition were adopted without the amendment.