Written answers

Thursday, 1 July 2010

Department of Enterprise, Trade and Innovation

Job Creation

10:00 pm

Photo of Ned O'KeeffeNed O'Keeffe (Cork East, Fianna Fail)
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Question 57: To ask the Minister for Enterprise, Trade and Innovation the position regarding a specific payment in respect of a person (details supplied) in County Cork. [28932/10]

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 lump sum claim for the individual concerned on 11 September, 2009. In the course of processing the claim, queries were raised with the employer and I understand that a response on one outstanding aspect is awaited. As soon as this issue is resolved the claim can be processed for payment without further delay.

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.

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