Written answers

Tuesday, 19 January 2010

Department of Enterprise, Trade and Employment

Redundancy Payments

9:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 204: To ask the Tánaiste and Minister for Enterprise, Trade and Employment when a person (details supplied) in County Mayo will receive their redundancy payment. [1884/10]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 206: To ask the Tánaiste and Minister for Enterprise, Trade and Employment when a person (details supplied) in County Mayo will receive their redundancy payment. [1886/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 204 and 206 together.

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 statutory lump sum claims for the individuals concerned and some former employees of the company on 26 November 2009 claiming inability to pay on behalf of the employer. These claims await processing.

The Redundancy Payments Section of my Department is currently processing rebate applications submitted by post from April 2009 and those filed online from May 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, such as in this instance, the Section is, in general, processing claims dating from July 2009.

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 2009 of 77,001. This figure exceeds the claims lodged for 2008 (40,607) by 90% 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. There has also been the provision of better quality information relating to current processing times on the Department's website and 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 we are currently looking at ways in which additional resources can be allocated to the area in the first quarter of 2010.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 205: To ask the Tánaiste and Minister for Enterprise, Trade and Employment when a person (details supplied) in County Mayo will be awarded their statutory redundancy. [1885/10]

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 a statutory lump sum claim for the individual concerned on 4 August, 2009 claiming inability to pay on behalf of the employer. This claim awaits processing.

The Redundancy Payments Section of my Department is currently processing rebate applications submitted by post from April 2009 and those filed online from May 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, such as in this instance, the Section is, in general, processing claims dating from July 2009.

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 2009 of 77,001. This figure exceeds the claims lodged for 2008 (40,607) by 90% 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. There has also been the provision of better quality information relating to current processing times on the Department's website and 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 we are currently looking at ways in which additional resources can be allocated to the area in the first quarter of 2010.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 207: To ask the Tánaiste and Minister for Enterprise, Trade and Employment when a person (details supplied) in County Mayo will receive payment under the insolvency payment scheme. [1887/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I can confirm to the Deputy that my Department received an application under the Insolvency Payments Scheme on 27 November 2009 for Arrears of Wages, Holiday Pay and Minimum Notice on behalf of the person concerned and some former employees of this company.

The impact on business of the severe economic circumstances currently pertaining has resulted in a significant rise in the level of company receiverships and insolvencies. Consequently, an increasing number of claims are being submitted to the Insolvency Payments Section, with 21,411 new claims lodged in 2009 – a 78% increase over the volume received in 2008. My officials endeavour to process all claims as quickly as possible and claims are dealt with in order of date of receipt. Current processing times indicate that the individual's claim should be paid by end February/beginning of March, however my Department is constantly endeavouring to achieve earlier completion and payment dates.

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