Mary Harney (Dublin Mid West, Progressive Democrats)

I am pleased to be in the Seanad to propose this important legislation. The Bill provides for the implementation of the enhancements to redundancy payment levels and other improvements to the operation of the redundancy scheme that are provided for in the partnership agreement, Sustaining Progress, and the report of the redundancy review group. It will also amend the insolvency payments legislation to allow employees of insolvent companies to claim their minimum notice entitlements under the insolvency payments scheme through a liquidator or receiver without first having to obtain an award from the Employment Appeals Tribunal.

In April 2002, the Government established a review group, in the context of social partnership, to examine the operation of the statutory redundancy payments scheme so as to ensure the scheme best meets the requirements of employers and employees. The group, which reported back to me and the Government in July 2002, agreed a range of changes to the redundancy scheme, including: a simpler method for calculating service; changes in the treatment of absences form work; treatment of service abroad; simplification of application forms; and a new IT system, which includes an e-government aspect. The group did not reach consensus on issues such as an increase in the level of statutory redundancy payments and size of rebate to employers. The partnership agreement, Sustaining Progress, endorsed the changes agreed by the redundancy review group and provided that, in addition, the distinction between service under and over 41 years will be removed, there will be two weeks pay for every year of service, the bonus week will be retained and the rebate of 60% to the employer will also be retained.