Written answers

Wednesday, 11 October 2006

Department of Enterprise, Trade and Employment

Redundancy Payments

9:00 pm

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Question 20: To ask the Minister for Enterprise, Trade and Employment when a decision on the legal questions regarding the Irish Ferries application for a rebate of the statutory redundancy payments will be made; and the overall cost to the Exchequer should the rebate be granted. [31660/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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From enquiries made with the Office of the Attorney General, it is not possible at this stage to give a precise date as to when the legal advice in this case will be forthcoming.

Claims for statutory redundancy rebate amounting to over €4 million have been received in my department from the company. If it is found that this rebate is due to the company, then it will be paid out of the Social Insurance Fund.

It is the policy of the Government to pay a rebate only in situations where the strict criteria stipulating genuine grounds for redundancy under Section 7 of the Redundancy Payments Act, 1967, as amended by Section 4 of the Redundancy Payments Act, 1971 and Section 5 of the Redundancy Act, 2003, are applicable.

Employers pay contributions to the Social Insurance Fund in respect of redundancy through the PRSI system. Valid claims for redundancy rebate are paid to employers, who qualify under the provisions of the Redundancy Payments Acts 1967 to 2003, from the Social Insurance Fund.

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