Written answers

Tuesday, 3 November 2009

Department of Enterprise, Trade and Employment

Redundancy Payments

8:00 pm

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 228: To ask the Tánaiste and Minister for Enterprise, Trade and Employment when redundancy payments will be awarded to the two staff members who lost their jobs as a result of the decision of FÁS to close down the Carrick-on-Suir Jobs Club, County Tipperary; and if she will make a statement on the matter. [38825/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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In line with the requirements of the Department of Enterprise, Trade and Employment and Department of Finance FÁS discontinued funding for the Carrick-on-Suir Jobs Club on 21st November 2008 because it was unable to achieve the nationally agreed targets set up for these programmes.

The two staff members were consequently entitled to a redundancy payment. This payment comprised a statutory amount of €10,860 and an enhanced amount of €23,307.57, giving a total of €35,167.57. The amount for both staff members was calculated and available to them.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 229: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of applications outstanding for statutory redundancy payments to date; and if she will make a statement on the matter. [38857/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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As at the end of September 2009, the number of redundancy claims on hands awaiting processing stood at 43,250.

Currently, the average time it takes to process rebate applications from employers filed online is 7 months while claims submitted by post are taking 8 months. The Redundancy Payments Section of my Department is currently processing applications filed online from March '09 and those submitted by post from February '09. In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements, the Section is, in general, processing claims dating from June '09.

In the period January to mid-October 2009, payments relating to redundancy claims made out of the Social Insurance Fund amounted to €238.7m in respect of 35,301 claims. This represents an average weekly payout of c. €6.28m on claims issued by my Department and is a measure of the level of activity involved.

Given the unprecedented increase in Redundancy Payment claims lodged with my Department since late 2008 it has proved impossible to maintain the customer service targets that previously obtained. The scale of the challenge is evident from the statistics that show incoming redundancy claims with a cumulative figure for the first nine months of 2009 at 60,785 an increase of 122% on the same period last year (27,373). This figure of 60,785 exceeds the claims lodged for the full year 2008 (40,607) and 2008 was, of itself, an exceptional year as compared with earlier years when claims received were of the order of 25,000.

Efforts continue to be made by my Department to deliver more acceptable turnaround processing times for redundancy payments given the difficulties that this gives rise to for both individual employees and the business community. Measures already taken include: · the reassignment of 26.7 additional staff (full time equivalents) from other areas of the Department to the Redundancy Payments area since early 2009 with ongoing review of trends and demands. The current number of staff serving in the Redundancy Payments Section (full time equivalents) is 53.8; · the prioritisation of the Department's overtime budget towards staff in the Redundancy Payments Section to tackle the backlog outside normal hours; · the establishment of a special call handling facility to deal with the huge volume of telephone calls from people and businesses who are naturally concerned about their payments, using the facilities and cooperation of the National Employment Rights Authority (NERA). This centre has received an average of 12,500 calls per month this year with an estimated 60% relating to redundancy payments; · The provision of better quality information relating to current processing times on the Department's website; · Engagement with the Revenue Commissioners to facilitate the offset of redundancy rebate payments by employers against outstanding tax liabilities with the Revenue Commissioners.

The Tánaiste and I continue to monitor closely the impact of these changes against the continuing influx of redundancy claims and will consider further measures to deal with the situation should current measures prove to be inadequate.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 230: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if an application for statutory redundancy by a person (details supplied) in County Cork is being expedited; and if she will make a statement on the matter. [38861/09]

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.

I can confirm that my Department received an application for a statutory redundancy rebate in respect of the person concerned on 14 September, 2009 from their former employer.

Currently, the average time it takes to process rebate applications from employers filed online is 7 months while claims submitted by post are taking 8 months. The Redundancy Payments Section of my Department is currently processing applications filed online from March '09 and those submitted by post from February '09. In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements as in this case, the Section is, in general, processing claims dating from June '09.

Given the unprecedented increase in Redundancy Payment claims lodged with my Department in since late 2008 it has proved impossible to maintain the customer service targets that previously obtained. The scale of the challenge is evident from the statistics that show incoming redundancy claims with a cumulative figure for the first nine months of 2009 at 60,785 an increase of 122% on the same period last year (27,373). This figure of 60,785 exceeds the claims lodged for the full year 2008 (40,607) and 2008 was, of itself, an exceptional year as compared with earlier years when claims received were of the order of 25,000.

Efforts continue to be made by my Department to deliver more acceptable turnaround processing times for redundancy payments given the difficulties that this gives rise to for both individual employees and the business community. Measures already taken include: · the reassignment of 26.7 additional staff (full time equivalents) from other areas of the Department to the Redundancy Payments area since early 2009 with ongoing review of trends and demands. The current number of staff serving in the Redundancy Payments Section in terms of full time equivalents is 53.8; · the prioritisation of the Department's overtime budget towards staff in the Redundancy Payments Section to tackle the backlog outside normal hours; · the establishment of a special call handling facility to deal with the huge volume of telephone calls from people and businesses who are naturally concerned about their payments, using the facilities and cooperation of the National Employment Rights Authority (NERA). This centre has received an average of 12,500 calls per month this year with an estimated 60% relating to redundancy payments; · The provision of better quality information relating to current processing times on the Department's website; · Engagement with the Revenue Commissioners to facilitate the offset of redundancy rebate payments by employers against outstanding tax liabilities with the Revenue Commissioners.

The Tánaiste and I continue to monitor closely the impact of these changes against the continuing influx of redundancy claims and will consider further measures to deal with the situation should current measures prove to be inadequate.

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