Written answers

Tuesday, 29 June 2010

Department of Enterprise, Trade and Innovation

Redundancy Payments

10:00 am

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 97: To ask the Minister for Enterprise, Trade and Innovation if a person (details supplied) in County Cork has an entitlement to a statutory redundancy payment; and if he will make a statement on the matter. [28159/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Short-time or temporary lay-off can occur where there is a reduction in the amount of work available, leading to a reduction in weekly earnings to less than half the normal weekly earnings, or a reduction in the hours worked to less than half the normal weekly working hours. An employer must give notice that the short-time is of a temporary nature.

Where an employee has been laid off or kept on short-time, or a mixture of both, either for 4 consecutive weeks or for a broken series of 6 weeks, where all six weeks occur within a 13 week period, an employee may decide to claim redundancy payment by serving a written notice to the employer (Form RP9) stating the intention to claim redundancy and termination of employment. Alternatively, an employee may decide to remain on temporary lay-off pending resumption of employment duties subject to work being available. In both instances, the decision is a matter for the employee.

However, an employee who claims and receives redundancy payment due to lay off or short time is deemed to have voluntarily left his or her employment and not entitled to notice under the Minimum Notice and Terms of Employment Acts 1973 to 2001.

In the case of workers who are laid off for an average period of more than twelve weeks per year prior to redundancy, the provisions relating to lay-off in the Scheme will not apply until the end of that average period. In the case of a seasonal worker, therefore, there will normally be no question of redundancy arising until the usual commencement time of seasonal work. If the individual is not re-employed at that point, the question of redundancy may arise, but not until then.

In general, redundancy is a situation where an employee's job has been made redundant and the employee is not replaced. The Redundancy Payments Acts 1967– 2007, provide that employees, who · have two years continuous service with an employer, · are aged 16 years or over, and · are in employment which is insurable for all benefits under the Social Welfare Acts, are entitled to statutory redundancy payment from the employer in the event of being made redundant.

Employees are entitled to notice, as per the Minimum Notice Act, prior to termination of employment. If the employer is unable to provide the appropriate notice, it can be paid in lieu.

A key issue in respect of selection for redundancy is that the selection process must be seen to be fair and non-discriminatory. It is open to an individual who feels that he/she has been unfairly dismissed by reason of unfair selection for redundancy, to take a case to the Rights Commissioners or to the Employment Appeals Tribunal under the Unfair Dismissals Acts.

The Unfair Dismissals Acts, 1977 to 2007 generally apply to any employee who has 12 months continuous service with the employer. In the case of a complaint referred to a Rights Commissioner, the employer may object and in that event the Employment Appeals Tribunal will hear the matter. Employees, who have any further queries in this regard, can contact the National Employment Rights Authority on Lo-call 1890 80 80 90 or via the website at www.employmentrights.ie

The Unfair Dismissals Acts provide that the dismissal of an employee shall be deemed, for the purposes of the Acts, not to be an unfair dismissal, if it results wholly or mainly from one or more of the following: · The capability, competence or qualifications of the employee for performing work of the kind, which he/she was employed to do, · The conduct of the employee (in which case the issue of disciplinary procedures may be important) · The redundancy of the employee's job

In determining for the purposes of the Acts whether the dismissal of an employee was an unfair dismissal or not, it shall be for the employer to show that the dismissal resulted wholly or mainly from one or more of the matters specified above or that there were other substantial grounds justifying the dismissal.

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