Tony Gregory (Dublin Central, Independent)
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Question 147: To ask the Minister for Enterprise, Trade and Employment if the practice in a hotel (details supplied) has been brought to his attention whereby permanent and other staff are being required to seek unemployment benefit for periods of four weeks by the hotel management as a cost saving measure; his views on this practice; and if he will make a statement on the matter. [8500/06]

Tony Killeen (Clare, Fianna Fail)
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It appears that the employer concerned has put the staff on lay-off. An employer is not required by statute to give my Department notice of his intention to place staff on lay-off. In accordance with the provisions of the Redundancy Payments Acts 1967 to 2003, a lay-off situation exists when an employer suspends an employee's employment because there is no work available, when the employer expects the cessation of work to be temporary and when the employer notifies the employee to this effect.

An employee who wishes to claim a redundancy lump sum because of lay-off must serve notice of intention to claim in writing within four weeks after the lay-off ceases. If the lay-off does not cease after four weeks, the employee can serve notice of intention to claim redundancy. Form RP9 must be used for this purpose.

In order to become entitled to claim a redundancy lump sum after a period of lay-off, that period must be at least four consecutive weeks or a broken series of six weeks where all six fall within a 13-week period. An employee who wishes to terminate his or her contract of employment by reason of lay-off must give his or her employer the notice required by his her contract or if none is required, at least one week's notice.

If an employee gives notice to claim redundancy in a lay-off situation, it is open to the employer to contest any liability to pay statutory redundancy to the employee on the grounds that it is reasonable to expect that within four weeks of the date of service of his or her notice, the employee will enter upon a period of employment of not less than 13 weeks during which he or she will not be on lay-off for any week. If the employer is not in a position to offer the employee 13 weeks unbroken service, then he must accede to the employee's claim for statutory redundancy.

An employee who claims and receives a redundancy payment in respect of lay-off is deemed to have voluntarily left his or her employment and therefore not entitled to notice under the Minimum Notice and Terms of Employment Acts, 1973 to 2001. An employee is entitled to receive unemployment benefit while on lay-off.