Written answers
Wednesday, 4 November 2009
Department of Enterprise, Trade and Employment
Redundancy Payments
10:00 am
Leo Varadkar (Dublin West, Fine Gael)
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Question 157: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the average number of additional weeks added to the statutory redundancy payment for workers in both the private and public sector; and if she will make a statement on the matter. [39452/09]
Dara Calleary (Mayo, Fianna Fail)
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Under the Redundancy Payments Scheme all eligible employees are entitled to a statutory redundancy lump sum payment on being made redundant. A redundancy situation arises in general where an employee's job no longer exists and he/she is not replaced. Under the Redundancy Payments Acts 1967 - 2007 an eligible employee is entitled to two weeks pay for every year of service, plus a bonus week, subject to the prevailing maximum ceiling on gross weekly pay of €600.
The issue of ex gratia payments in excess of statutory minimum entitlements is entirely a matter for negotiation between the employer and the employees and is likely to depend on the individual circumstances of the case and the financial position of the employer. This is not an area in which the Tánaiste or I have any role. Recent cases which have come before the Labour Relations Commission suggest that there is no norm in this regard with settlement terms varying considerably from two weeks in excess of the statutory minimum up to six weeks.
As regards redundancy programmes in the public sector, these would not normally come within the realm of the Redundancy Payments Scheme unless the employee was contributing at the full rate of PRSI.
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