Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 189: To ask the Minister for Social and Family Affairs the procedure in instances where an employee has discovered on the sale of the business that the employer has not paid PRSI contributions on their behalf despite the money been taken out of their salary and are unable to obtain documentation's from the former employer of their contribution; and if she will make a statement on the matter. [41712/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Department's Inspectorate, appointed under Section 250 of the Social Welfare (Consolidation) Act 2005 is responsible, inter alia, for ensuring that employers and self employed people comply with the Act in relation to Pay Related Social Insurance contributions. Employer compliance, in this regard, is monitored through inspections which include; detailed examinations of employers' records to ensure that correct PRSI payments are being made in respect of all employees.

Where an employee notifies the Department that his/her employer has not been remitting PRSI on their behalf or where an irregularity in a customer's PRSI record is detected at claim processing stage, the case is referred to a Social Welfare Inspector for investigation.

Where PRSI undercharges are confirmed, the Inspector sets out PRSI arrears/underpayment in respect of each employee for each tax year and issues a demand to the employer for payment. Should the employer fail to respond satisfactorily, a statutory demand will issue by registered post and the employer given 14 days to respond. If the employer fails to respond the case is considered for prosecution.

Following confirmation of the employment, either by way of wage inspection or employee statement, the Department's Client Eligibility Services Section is advised to update the employee's PRSI record for the period of employment in question. Where a benefit claim is pending the relevant scheme area is similarly advised. This is to ensure that there is no loss of benefit to an employee caused by their employer's failure to make timely and proper returns on their behalf.