Written answers

Thursday, 13 May 2010

Department of Enterprise, Trade and Innovation

Redundancy Payments

5:00 pm

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 95: To ask the Minister for Enterprise, Trade and Innovation the reason for the delay in processing redundancy claims by the Employment Appeals Tribunal, which is currently running at 55 weeks; his views on whether such delays are unacceptable; the steps he proposes in this regard; and if he will make a statement on the matter. [19730/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The Employment Appeals Tribunal is an independent, quasi-judicial body under the aegis of the Department of Enterprise, Trade and Employment. I am aware that there has been an unprecedented level of increase in claims to the Employment Appeals Tribunal - from 3,173 in 2007 to 9,458 in 2009 and a continuation of this trend in 2010 with 4,384 new claims lodged between January and the end of April. This has had an impact on case processing timeframes.

The situation in the Tribunal is under constant review and a number of steps have been taken to relieve this pressure. These include increasing the allocation of administrative resources to the Tribunal in the past two years, which has facilitated an increase in the numbers of sittings per day, from 924 in 2007 to a total of 1,437 in 2009. Earlier this year, I increased the pool of people available to sit on Tribunal Hearings and this should further help.

Efficiencies introduced in the Tribunal have increased the rate of throughput of claims at a greater rate from 2,807 in 2007 to 5,053 in 2009. I know from my recent meeting with the Chairman and all the Members of the new Tribunal that they are taking additional measures to try to address the upward pressure on case processing timeframes. I understand that the Tribunal will launch a pilot initiative at the end of June in the area where the increase in the numbers of claims has been particularly acute with a view to making a rapid and significant reduction in the list of cases awaiting hearing in that area.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 96: To ask the Minister for Enterprise, Trade and Innovation when payment of statutory redundancy will be awarded in respect of a person (details supplied) in County Tipperary; and if he will make a statement on the matter. [19732/10]

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 wish to advise the Deputy that while a lump sum claim was submitted to the Department in this instance, the claim is being returned as the required supporting documentation has not been lodged. It is my Department's practice not to enter incomplete claims on the system as these claims cannot be processed until the necessary documentation is submitted. The documentation required in support of lump sum claims, such as in this instance, is set out on my Department's website at www.entemp.ie. Submission of correctly completed Redundancy claim forms (RP50's) with all of the required documentation greatly facilitates the processing of claims.

The documentation required in support of lump sum claims is evidence of the employer's inability to pay the redundancy entitlements to the employees. This involves requesting a statement from the company's Accountant or Solicitor attesting to the inadequacy of assets to make the redundancy payments and, the latest set of financial accounts for the company. The employer is also asked to admit liability for the 40% liability attaching to the company arising from the redundancy payments. If this information is provided to the Department, the employees are paid their redundancy entitlement from the Social Insurance Fund. Upon payment, the Department pursues the company for the 40% share that the company would ordinarily have been expected to pay to the employees.

If the necessary supporting documentation required from the employer is not provided to my Department, the employee will be advised by my Department to take a case to the Employment Appeals Tribunal (EAT) against the employer to seek a determination establishing the employee's right and entitlement to redundancy. Once such a determination is available, the Department is then in a position to make the payment to the employee concerned. Should the outstanding documentation be provided by the employer during the period while the case is pending a hearing before the EAT, this would allow the claim to be processed by my Department in the usual way.

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