Written answers

Tuesday, 6 October 2009

Department of Enterprise, Trade and Employment

Redundancy Payments

9:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 194: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding a statutory redundancy application in respect of a person (details supplied) in County Cork. [33336/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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My Department administers the Social Insurance Fund (SIF) in relation to redundancy matters on behalf of the Department of Social and Family Affairs. There are two types of payment made from the SIF — rebates to those employers who have paid statutory redundancy to eligible employees and, statutory lump sums to employees whose employers are insolvent and/or in receivership/liquidation.

The Redundancy Payments Section of my Department received a statutory lump sum application for the individual concerned in June 2009, claiming an inability to pay on behalf of the employer. When an employer claims inability to pay, the onus is on the employer to provide sufficient proof to substantiate the claim. In this case the company has now gone into liquidation and the statutory lump sum entitlement will be paid to eligible employees from the Social Insurance Fund. The Department will then seek to recover 40% of the lump sum paid from the liquidator. My Department is currently awaiting the submission of documentation from the liquidator. Once this is received, and if it is in order, the claim will be processed for payment.

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