Written answers

Thursday, 17 December 2009

Department of Enterprise, Trade and Employment

Redundancy Payments

6:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 26: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to delays of up to 12 months in respect of statutory redundancy payments for persons who have lost their jobs; and if she will make a statement on the matter. [47931/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The Tánaiste and I are very concerned about the current delays being experienced by businesses and individuals in the processing of statutory redundancy payments and we have taken measures to improve this situation. However, the delays in processing are not generally of the order referred to by the Deputy if all relevant information and supporting documents have been supplied to the Department and are in order. Currently, the Redundancy Payments Section of my Department is processing rebate applications submitted by post from March 2009 and those filed online from April 2009, so that the waiting time is approximately 8 to 9 months depending on the manner of filing the application. In respect of lump sum payments paid directly to employees the Section is, in general, processing claims dating from June 2009.

On the basis of the latest figures available to end November 2009 these indicate that, on a national basis, the number of redundancy claims awaiting processing stands at 42,591. I should point out that my Department has, since 1 January processed 45,201 claims and made corresponding payments amounting to €287m (provisional figures) which results in average weekly payments to the value of €6.5m being issued. Given the 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 eleven months of 2009 is 73,024, up 96% on the same period last year (37,257). This figure 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 52.5; · 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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