John Perry (Sligo-Leitrim, Fine Gael)
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Question 136: To ask the Minister for Enterprise, Trade and Employment the guidelines in relation to the payment of redundancy to employees once an institution closes and ceases business; if the employer has the right to advise the employees that their redundancy package will be paid at a later date once the premises closes; when are the employees entitled to receive their redundancy; and if he will make a statement on the matter. [15736/07]

Tony Killeen (Clare, Fianna Fail)
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Payment of Statutory Redundancy is, in the first instance, the responsibility of the employer. When a redundancy situation arises in an employment, an employer must give at least 2 weeks notice of termination of the employment in accordance with the provisions of the Redundancy Payments Acts 1967 to 2003. On the date of termination or as close to possible to it, the employer should pay the statutory redundancy lump sums directly to the employees.

If the employer is unable to pay statutory redundancy to the employees but completes the necessary forms (RP50), the employees may then claim their statutory lump sums directly from the Social Insurance Fund, which is administered by this Department. Payment is made directly to the employees about four weeks from the date of receipt of the correctly completed forms in the Department. The Department then seeks to recover these debts from the employer.

If, on closure of the employment an employer fails to pay the employees their statutory redundancy entitlements within a reasonable length of time, say 2 weeks, or does not give them the necessary forms to claim the statutory lump sums from the Social Insurance Fund, it is then open to the employees to bring appeals against their former employer before the Employment Appeals Tribunal for a decision in the matter. This must be done within twelve months of the termination of employment.

If the Tribunal, on hearing the case, finds in favour of the employees, and the employer fails to pay, payment can be then be made directly to the employees from the Social Insurance Fund on foot of the Tribunal Order. The department then seeks to recover these debts from the employer.