Dáil debates

Wednesday, 30 March 2011

3:00 pm

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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Question 29: To ask the Minister for Social Protection if she has explored the possibility of recouping the cost from guilty employers of social welfare payments made to persons during the period extending from their unfair dismissal and a determination by the Employment Appeals Tribunals that they had been wrongfully dismissed and were then reinstated or compensated by order of the Tribunal [6015/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Employment Appeals Tribunal is an independent body bound to act judicially and was set up to provide a speedy, fair, inexpensive and informal means for individuals to seek remedies for alleged infringements of their statutory rights. Where compensation is awarded by an Employment Appeals Tribunal, the award is subject to a maximum of 104 weeks remuneration. Remuneration includes basic pay, allowances, bonuses, benefit-in-kind and employers' contribution to pension and health insurance schemes where applicable. The tribunal, in setting the award, must consider actual and prospective loss. The tribunal can reduce the level of an award due to the employees' contribution to the dismissal, the employees' failure to mitigate the loss or the employees' ability to mitigate the loss by securing alternative employment. The calculation of awards is usually based on net remuneration.

Between 1977 and 1993, if an employee received an award as a result of an Employment Appeals Tribunal process, the amount of any social welfare payments received were deducted from this award. The Unfair Dismissals (Amendment) Act 1993 changed this provision to permit the tribunal to disregard social welfare benefits and tax rebates received by the claimant in assessing compensation levels. With regard to the possibility of recouping costs from employers where they have been found to have breached the statutory rights of their employees, any change in current provision would be a matter for my colleague, the Minister for Enterprise, Trade and Innovation, to consider in the first instance.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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I hope the Minister will be in contact with the Minister for Enterprise, Trade and Innovation because there is potential, based on the figures, to recoup up to €2 billion in payments. That is a quick estimate based on the amount of claims disposed of. There were 200 claims in the past year for which figures are available. In the period between the claim being registered and the outcome I presume most of those people depended in some way on a social welfare payment. It is a loss to the State. Employees benefit from the protection of the State but employers benefit from it also and in some cases when awards are made they have to pay back wages. I hope the Minister will pursue this matter.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Could I ask a supplementary question?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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No. It is 3.45 p.m. so I am obliged to bring Question Time to a close. I am sorry.