The Credit Institutions (Stabilisation) Act 2010 and employment rights
The Credit Institutions (Stabilisation) Act 2010 became law on 21 December 2010. The Act introduces interesting provisions which affect employment rights of directors and officers of financial institutions. Sections of the Act have already been utilised by the Minister for Finance in relation to a bank.
Under Part 6 of the Act the Minister for Finance is conferred with wide ranging powers in relation to a “relevant institution”. Section 2(1) defines a “relevant institution” which includes banks and credit unions within the meaning of the Credit Union Act 1997.
Under Section 44 of the Act the Minister for Finance may, by written notice, remove a person from a position as director or officer of a relevant institution or terminate the employment by a relevant institution of any person. This latter power of removal has the effect of terminating any contract of service or contract for services between the person and the relevant institution. However such a removal does not terminate any right of a removed person to claim compensation or damages from the relevant institution for the loss of his or her office or appointment. These rights are preserved, but the right to re-instatement or re-engagement is taken away. The Courts and tribunals are prohibited from granting any remedy which would have the effect of preventing or restraining the Minister from exercising his functions under Section 44 and from ordering the re-instatement or re-engagement of such a person.
For further information contact Catherine O’Connor firstname.lastname@example.org