Written answers
Tuesday, 12 October 2004
Department of Enterprise, Trade and Employment
Severance Payments
9:00 pm
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 55: To ask the Minister for Enterprise, Trade and Employment if he will review the decision of his predecessor not to proceed with the enhanced redundancy payments for workers at a company (details supplied) in County Kilkenny; if legal obstacles exist to prevent the retrospective payments to these workers in view of commitments made by his predecessor; and if he will make a statement on the matter. [24177/04]
Tony Killeen (Clare, Fianna Fail)
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The position is that nothing further can be done regarding enhanced statutory redundancy payments for the workers concerned. I, like my predecessor, am bound by the legal advice that was to the effect that no retrospection would be possible. This follows from the principle established by the courts that the Legislature cannot impose retrospective financial obligations on the employers or indeed impose such obligations without due notice. It was therefore not possible to apply the new provisions agreed under Sustaining Progress to the workers concerned as they were made redundant some time before the new legislation came into effect.
It is not possible to make ex gratia payments to the workers concerned. There are thousands of workers in similar circumstances. It would be unreasonable to make special arrangements for one group of workers. The only conclusion is that retrospective or ex gratia payments are not possible.
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