Written answers

Tuesday, 9 March 2010

Department of Enterprise, Trade and Employment

Redundancy Payments

8:00 pm

Photo of Eamon ScanlonEamon Scanlon (Sligo-North Leitrim, Independent)
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Question 130: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding a claim in respect of a person (details supplied) in County Sligo; and if she will make a statement on the matter. [11509/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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My Department administers the Social Insurance Fund (SIF) in relation to both the Redundancy and Insolvency Payments Schemes 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 payable to employees whose employers are insolvent and/or in receivership/liquidation. I can confirm to the Deputy that my Department received a rebate claim from the person concerned on 27 March 2009 and, subsequently, in January of this year received a lump sum claim in respect of another former employee indicating inability to pay the redundancy entitlement on behalf of the employer.

In instances such as this where the Redundancy Section receives both a rebate and a lump sum claim from the same employer, the Department offsets the rebate amount normally payable to the employer against the lump sum amount as the latter is paid directly to employees from the Social Insurance Fund on the basis that the employer is unable to pay the statutory redundancy entitlement. In this case, the amount payable on the lump sum claim exceeds the amount of the rebate due to the employer and the Department therefore sought adequate proof of inability to pay on the employer's behalf. I understand that the employer in this case has supplied the necessary documentation to allow the lump sum claim to be processed and this in now in process. It is not possible to say definitively when payment will be made due to the current backlog but I would hope that it will be a matter of weeks.

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