Micheál Martin (Cork South Central, Fianna Fail)

The payment of statutory redundancy to employees is a matter, in the first instance, for the employer. My Department is responsible for ensuring that statutory redundancy is paid to all employees who find themselves in a redundancy situation and who, by reference to age, insurability and length of service are deemed eligible for such payment. Ex gratia payments, that is, payments over and above the statutory entitlement are a matter for negotiation between employer and employee or by union representatives or other agreed representatives acting on their behalf.

Statutory redundancy was paid to all eligible workers at Irish Ferries and the company subsequently applied for a rebate under the statutory redundancy scheme on 17 February 2006. Employers who pay statutory redundancy to employees in a genuine redundancy situation are entitled to recoup 60% of the moneys so paid from the social insurance fund.

When the application was received in my Department, it was examined in detail in accordance with normal procedure. Such examination gave rise to doubts as to the eligibility of the application under section 7 of the Redundancy Payments Acts 1967 to 2003. Accordingly, the issue of eligibility was referred to the Office of the Attorney General for legal advice. A number of complex legal issues arose at several stages during the consideration of this matter which required further information to be sought from Irish Ferries. The matter was considered in detail on the basis of the legal advices received and on the facts of the case and it was determined that Irish Ferries was legally entitled to receive a rebate in accordance with the Redundancy Payments Acts 1967 to 2003.

All decisions to pay a redundancy rebate must be based on the facts of the case and on the Redundancy Payments Acts 1967 to 2003. There is no room for the exercise of ministerial preference or the consideration of matters extraneous to the redundancy legislation.

The protection of employment — exceptional collective redundancies — Bill, as negotiated in the context of Towards 2016, is at an advanced stage of drafting. The Bill will address cases of collective redundancies where specific situations apply and provide for the extension of unfair dismissals protection in circumstances where all employees are involved in dismissal following a strike. It is expected that the Bill will be published in a couple of weeks.

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