Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 120: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason a company (details supplied) in County Tipperary is not prepared to pay statutory redundancy entitlement; and if she will investigate the matte ; and when workers will be paid. [25895/09]

Dara Calleary (Mayo, Fianna Fail)
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In a reply given in regard to the company in question on 16 June last, I outlined the criteria in relation to the right of employees to receive redundancy entitlement under the Redundancy Payments Acts, 1967 — 2007. This provides that employees who have two years continuous service with an employer, are aged 16 years or over and are in employment which is insurable for all benefits under the Social Welfare Acts, have a statutory entitlement to a redundancy payment from their employer in the event of being made redundant. It is up to the employer concerned in the first instance to determine whether or not a redundancy situation obtains. Any disputes in this regard can be referred to the Employment Appeals Tribunal (EAT) for adjudication between the parties.

Where an employer is unable or refuses to pay the statutory lump sum, my Department pays the statutory amount from the Social Insurance Fund (SIF), which it administers on behalf of the Department of Social and Family Affairs. 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.

In the event of a positive finding by the tribunal in favour of an individual, application for a redundancy payment should be made by the individual on form RP 50 which is available from the Department's website at www.entemp.ie. This form should be completed and returned with the decision of the Employment Appeals Tribunal which will allow the application to be processed. It should be noted that an employee must make application for a redundancy payment or seek a determination from the EAT within 12 months of ceasing of employment.

I understand also that, due to a downturn in the market for its products, the company has decided to close its manufacturing operation in Callan with the loss of about 40 jobs and that a dispute has arisen over the redundancy terms available.

While the dispute was the subject of conciliation by the Labour Relations Commission, no agreement was reached and, in line with normal industrial relations procedures, the dispute has been referred on to the Labour Court. I understand a hearing on the matter will take place on Friday next 3 July.

It must be remembered that the system of industrial relations in Ireland is essentially voluntary in nature and the Labour Court cannot compel a company to comply with its recommendations. It is a court of last resort in the industrial relations process and it is expected that the parties come to the process in good faith and consequently are prepared to give serious consideration to the court's recommendations. Recommendations of the Labour Court are not legally binding, however, and ultimately, responsibility for the resolution of trade disputes is a matter for the parties involved.