Written answers

Wednesday, 4 October 2006

Department of Enterprise, Trade and Employment

Redundancy Payments

9:00 pm

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent)
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Question 286: To ask the Minister for Enterprise, Trade and Employment if the figures for collective redundancies as defined (details supplied) are correct; if an employer applies to his Department and notifies of a collective redundancy, if the employer can receive a two thirds rebate on the cost of the redundancy; and if he will make a statement on the matter. [31271/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The correct definition of "collective redundancies" as per Section 6(1) of the Protection of Employment Act, 1977 as amended by Article 5 of the Protection of Employment Order 1996 is as follows—

"Dismissals effected by an employer for one or more reasons not related to the individual concerned where in any period of 30 consecutive days the number of such dismissals is—

(a) at least 5 in an establishment normally employing more than 20 and less than 50 employees,

(b) at least 10 in an establishment normally employing at least 50 but less than 100 employees,

(c) at least ten per cent of the number of employees in an establishment normally employing at least 100 but less than 300 employees, and

(d) at least 30 in an establishment normally employing 300 or more employees."

Under Section 12 of the Protection of Employment Act 1977, as amended by Article 5 of the Protection of Employment Order 1996, there is an obligation on an employer proposing to effect collective redundancies to notify the Minister for Enterprise, Trade and Employment in writing of his or her proposals at least 30 days before the first dismissal takes place.

Employers who pay their employees their correct statutory redundancy lump sum entitlement under the Redundancy Payments Acts, 1967 to 2003 are entitled to a 60% rebate from my Department, financed by the Social Insurance Fund. This rebate applies to payments to all eligible employees under these Acts, regardless of whether or not a collective redundancy is involved.

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