Written answers

Thursday, 24 June 2010

Department of Enterprise, Trade and Innovation

Redundancy Payments

4:00 pm

Photo of Chris AndrewsChris Andrews (Dublin South East, Fianna Fail)
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Question 44: To ask the Minister for Enterprise, Trade and Innovation further to a previous parliamentary question regarding staff made redundant from a company (details supplied), if the staff will receive the redundancy payments due to them; when the staff will receive their redundancy; and if he will expedite the matter. [27283/10]

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 there are two outstanding lump sum claims for the company concerned which were received by my Department on 30 October, 2009 and 5 November, 2009. In the course of processing the claims in question, queries were raised with the employer and I understand that a response on an outstanding query is awaited.

In general, 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 a statement from the company's Accountant or Solicitor confirming the inability of the company to pay the redundancy entitlements as well as requesting 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 the required information is provided to the Department, the employees will be 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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