Written answers

Wednesday, 22 April 2009

Department of Enterprise, Trade and Employment

Redundancy Payments

10:00 pm

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 159: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the procedure for employees, whose employers do not provide the required paperwork, for receiving their statutory redundancy payments; the process that requires them to do so in order that their payment can be processed; and the length of time this process should take. [15700/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Normally, employees receive their redundancy entitlements from their employer. Employers are then entitled to apply to the Department for a rebate of 60% of the statutory element of the redundancy payments made. If, at this stage, an employer submits a claim which is incomplete, the Department will seek the necessary information from the employer. In these circumstances, employees will normally suffer no delay as they should already have received their redundancy payment. The delay in these cases caused by incomplete claims will result in the employer not getting a rebate until all information is received. The period of time involved depends in each case on how quickly the employer responds with full information.

Where an employer is not in a position to pay the statutory lump sum, my Department pays the statutory amount from the Social Insurance Fund (SIF) to individual employees and seeks reimbursement of 40% of the total payments from the employer. When an employer is not in a position to pay statutory redundancy, the Redundancy Payments Section requires proof of inability to pay. The employer is asked to provide a letter from his Accountant or Solicitor confirming inability to pay together with documentary evidence (i.e Audited Accounts/Statement of Affairs) within 30 days of issue of the communication. Where an employer does not provide the information requested or refuses to pay within the agreed timeframe, the employee is advised to take a case to the Employment Appeals Tribunal (EAT) against the employer, seeking a determination of their entitlement to statutory redundancy. The average waiting period for a case to be heard before the EAT is, I understand, currently around 27 weeks.

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