Tommy Broughan (Dublin North East, Labour)
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Question 278: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will investigate reports that Irish workers are being forced to take redundancy in the construction sector when workers from outside of the Republic of Ireland are still being employed by the contractors and subcontractors involved; if she will review whether the State's redundancy scheme is being used to fund the replacement of direct employees by agency or subcontracted staff in the construction sector; and if she will make a statement on the matter. [17350/08]

Tommy Broughan (Dublin North East, Labour)
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Question 279: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to what is allegedly happening in a company (details supplied), where Irish workers are allegedly being forced to take redundancy and are being replaced by non-Irish nationals; if she will check all P35s and pension schemes of all agency and non-agency workers employed by the company and all of their subcontractors; and if she will make a statement on the matter. [17351/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 278 and 279 together.

The Redundancy Payments Section of my Department has had no application for a rebate in respect of any sum paid to employees by way of statutory redundancy from the construction company in question.

The purpose of the Redundancy Payments Scheme is to compensate workers, under the Redundancy Payments Acts, 1967 to 2007, for the loss of their jobs by reason of redundancy. Compensation is based on the workers' length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600.00 per week. Broadly speaking, a redundancy situation obtains where a job ceases to exist, the employment is terminated by the employer and the employee is not replaced. Payment of statutory redundancy is, in the first instance, a matter for the employer. On payment of statutory redundancy to an employee, an employer is entitled to apply for a rebate of 60% of the total cost from the Social Insurance Fund. There are no conditions attached to the end-use of any monies rebated to the Employer.

However, it is the policy of the Government to pay a rebate only where the strict criteria stipulating genuine grounds for redundancy are met 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 Payments Act, 2003, and Section 4 of the Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act, 2007.

If the employees involved believe that they have been unfairly dismissed they may present a claim of unfair dismissal to either a Rights Commissioner or to the Employment Appeals Tribunal. The Unfair Dismissals Acts apply with certain exceptions, to employees over age 16 with at least 12 months' continuous service.

Checking of P35s is a matter in the first instance for the Office of the Revenue Commissioners and I would not be aware of checks made in any particular case.

An Employment Agreement on wages and conditions of employment in the Construction Industry has been registered with the Labour Court.

The effect of this registration is to make the provisions of the agreement legally enforceable in respect of every worker of the class, type or group to which it is expressed to apply and to his or her employer, even if such worker or employer is not a party to the agreement. Section 10 of this REA sets out requirements for the engagement of sub-contractors.

The provisions of the Construction Industry's REA on wages and conditions of employment are enforced by the Labour Inspectors of the National Employment Rights Authority. Labour Inspectors are empowered to seek compliance with the terms specified in the agreements.

The enforcement of the provisions of the Registered Employment Agreement may also be effected by direct complaint to the Labour Court. A trade union, an association of employers or an individual employer may complain to the Labour Court that a particular employer is not complying with a Registered Employment Agreement. If, after investigating a complaint, the Court is satisfied that the employer is in breach of a Registered Employment Agreement it may by order direct compliance with the agreement. Failure to comply with such an order is an offence punishable by a fine.

The Construction Industry (Pension Assurance and Sick Pay) Registered Employment Agreement (REA) requires employers in the construction sector to become and remain a party to a contributory pension scheme approved by the Revenue Commissioners. I understand that the Construction Industry Monitoring Agency (CIMA), which was established by the Construction Industry Federation and ICTU monitors compliance with the REA in this respect, with a view to ensuring that employers register their employees in the pension scheme and pay the weekly pension contributions on employees' behalf. Enforcement of the provisions of this Registered Employment Agreement may be effected by direct complaint to the Labour Court.