Róisín Shortall (Dublin North West, Labour)

I thank Senator Cullinane for raising this issue. I am responding to the Adjournment on behalf of my colleague, the Minister for Social Protection, Deputy Joan Burton.

The primary purpose of the redundancy payments scheme is to compensate workers, under the Redundancy Payments Acts 1967 to 2011, for the loss of their jobs by reason of redundancy. Compensation is based on the worker's length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week.

It is the responsibility of the employer to pay statutory redundancy to all their eligible employees. An employer who pays statutory redundancy payments to their employees is then entitled to a rebate from the State. Rebates to employers and lump sums paid directly to employees are paid from the social insurance fund, SIF.

The insolvency payments scheme operates under the Protection of Employees (Employers' Insolvency) Act 1984, and is designed to protect certain outstanding pay related entitlements due to employees in the event of the insolvency of their employer. Such entitlements include wages, holiday pay, sick pay, and payment in lieu of minimum notice due under the Minimum Notice and Terms of Employment Acts 1973 to 2001.

The Minister for Social Protection has no plans to change this legislation. The Minimum Notice and Terms of Employment Acts 1973 to 2001 provide that, if an employee has been in continuous service with the same employer for at least 13 weeks, the employee is entitled to a minimum period of notice if the employer terminates the contract of employment. The Acts, which are under the aegis of the Minister for Jobs, Enterprise and Innovation, do not prevent an employee from accepting payment in lieu of notice. The period of notice varies according to the length of service as follows: 13 weeks to two years service - one week's notice; two years to five years service - two weeks' notice; five years to ten years service - four weeks' notice; ten years to 15 years service - six weeks' notice; more than 15 years - eight weeks' notice.

Under redundancy payments legislation, an eligible employee must receive at least two weeks' notice. This two-week notice period can overlap with the minimum notice period provided for under the minimum notice legislation. The minimum notice legislation provides a means of redress for an employee who believes he or she has not received his or her entitlements, whereby the employee can make a claim for compensation to the Employment Appeals Tribunal. I am informed by the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, that he has no plans to amend the existing minimum notice legislation. I thank Senator Cullinane for raising the matter.