Oireachtas Joint and Select Committees

Thursday, 30 May 2019

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance (Tax Appeals) (Amendment) Bill 2019: Discussion

Photo of Paddy BurkePaddy Burke (Fine Gael) | Oireachtas source

On the social protection aspect, employers must pay two weeks' redundancy pay for each year of service to staff they make redundant. I do not know when exactly the measure was brought in but during the downturn, when companies and sole traders got into difficulties, there was a clawback on the two weeks' pay per year from the Department. The Government or the Department of Finance or Department of Social Protection, as it was known then, paid 70%. The clawback was eroded, however, when it was reduced from 70% to 15% and it eventually disappeared altogether, with the result that the staff of any company or sole trader that closed down or downsized had to get two weeks' pay per year. This was implemented a number of years ago but some of these companies and sole traders employed people prior to the introduction of the requirement to pay redundancy of two weeks' pay per year worked. While this falls within the remit of the Department of Employment Affairs and Social Protection, the Department of Finance got rid of the 70% clawback.

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