If you’ve been keeping an eye on employment law in the Republic of Ireland, you may have already spotted the Protection of Employees (Employers’ Insolvency) (Amendment) Bill 2025/2026. It passed the Seanad in March 2026, so it’s really just a matter of time before it starts making a practical difference.
So what’s the headline?
The Bill widens the safety net. Employees will be able to claim unpaid wages and other pay-related entitlements even where an employer stops trading without going through the usual formal insolvency routes like liquidation or receivership. In the past, that kind of “quiet exit” could leave employees in a tricky position, because the protections only kicked in once formal insolvency proceedings were triggered.
It also tightens and expands the definition of when an employer is considered “deemed insolvent,” which means more situations will now fall within the scope of the Insolvency Payments Scheme. In plain terms, more employees will be eligible to make claims when things go wrong.
The practical takeaway is that the days of simply closing the doors and moving on without consequences are getting further behind us. While businesses can unfortunately fail, the financial fallout shouldn’t land on employees. This change helps ensure that, if the business can’t pay its people, there’s still a route for employees to recover what they’re owed — so they can keep the lights on, pay the bills, and not have to explain to their landlord that “my employer vanished” is not, in fact, a recognised payment method.
Experienced Senior HR and Employment Law Consultant with over 8 year experience in HR field. 15 years people managing record. Diploma in HR Management with CIPD Level 7 qualifications. Advanced Award…
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