Written answers

Wednesday, 29 September 2010

Department of Enterprise, Trade and Innovation

Redundancy Payments

11:00 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 1684: To ask the Minister for Enterprise, Trade and Innovation his plans to improve processing times for statutory redundancy payments; and if he will make a statement on the matter. [31761/10]

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Question 1702: To ask the Minister for Enterprise, Trade and Innovation the number of applicants currently awaiting redundancy payments; the length of waiting times for redundancy in each of the different categories of redundancy; the way these compare with 2009; his plans to reduce the backlog and waiting times; and if he will make a statement on the matter. [32100/10]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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Question 1718: To ask the Minister for Enterprise, Trade and Innovation if he will address the backlogs and delays in the system for accessing redundancy awards through the Social Insurance Fund for citizens who have been made unemployed; the average time a citizen who has been made redundant must wait for the awarding of a redundancy claim; if he has met or been briefed by the National Employment Rights Agency on this matter; and if he will make a statement on the matter. [33187/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I propose to take Questions 1684, 1702 and 1718 together.

My Department administers the Social Insurance Fund (SIF) in relation to redundancy matters on behalf of the Department of Social Protection. 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.

The Redundancy Payments Section of my Department is currently processing rebate claims from employers in general dating from February 2010 so that the waiting time is currently between 6 and 7 months. In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements, I am pleased to say that the processing time for these claims has improved significantly and claims dating from February 2010 are currently being processed. This follows a dedicated intervention over the summer period to improve the processing period for lump sum claims. For instance, in July 2010, my Department was processing lump sum claims dating from November 2009 i.e. an 8-month waiting period and, as outlined, lump sum claims dating from February 2010 are now being processed which represents a genuine improvement. Of course in some instances, where the necessary supporting documentation for lump sum claims is not provided to my Department, or where queries arise, processing of claims can be further delayed until the required documentation is provided and/or outstanding queries are resolved.

I acknowledge the Deputies' concerns in relation to processing times overall given the difficulties which delays give rise to for employees and employers alike but would like to assure the Deputies that my Department continues to make every effort to reduce processing times. Measures already taken in the Department to alleviate the pressures on the Payments area include:

Almost doubling the number of staff working solely on redundancy payment claims through reassignment to a current level of 52 full time equivalents;

Prioritisation of the Department's overtime budget towards staff in the Section to tackle the backlog outside normal hours;

Establishment of a special call handling facility in NERA to deal with the huge volume of telephone calls from people and businesses concerned about their payments;

Better quality information relating to current processing times on the Department's website;

Engagement with the Revenue Commissioners to facilitate the offset of redundancy rebate payments by employers against existing outstanding tax liabilities which those employers owe to the Revenue Commissioners.

I would also point to the fact that in the 8-month period up to the end of August 2010, the number of claims processed by my Department was 51,800, a 96% increase compared to the corresponding period in 2009 (26,405) which also exceeds the total number of claims processed for the whole year 2009 (50,664).

It may also be helpful to the Deputy to note that currently the weekly intake of new claims is an average of just over 1,200. Overall, new claims received in the first eight months of 2010 amounted to 43,449, a fall of just over 20% over the corresponding 8-month period in 2009 when 54,439 claims were lodged.

The claims backlog which reached its highest level at 43,000 in the latter quarter of 2009 has been reduced to a level of 32,137 at the end of August 2010 representing a reduction in the backlog of almost 11,000 claims.

The National Employment Rights Authority (NERA) provides information to employees and employers on employment rights generally through its dedicated call centre. As mentioned above, NERA is currently undertaking, on a temporary basis, the provision of information also in relation to redundancy specific claims lodged with my Department for processing. This is assisting greatly in that it allows my Department to focus completely on the processing of redundancy claims to more effectively deal with the current claims backlog.

Responsibility for the payment functions arising under the Redundancy and Insolvency payment schemes is due to be transferred to the Department of Social Protection with effect from 1 January 2011. In transferring the functions between Departments, it is the intention that this will operate seamlessly and without any adverse impact on the service levels being experienced by individuals or the business community awaiting payment of redundancy claims.

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent)
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Question 1685: To ask the Minister for Enterprise, Trade and Innovation the reason for the delay in payment to persons (details supplied) in Dublin 3. [31799/10]

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 statutory redundancy lump sum claims in respect of the individuals concerned in August 2009. In general, my Department is currently processing lump sum claims dating from February 2010. I understand that in this case, a delay was encountered arising out of a query raised by my Department that was subsequently resolved to satisfaction at which point the claims were placed in line for processing. I am pleased to advise the Deputy that both claims have been authorized for payment on 20 September 2010 and that the claimants should receive payment within 7 to 10 days of that date.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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Question 1686: To ask the Minister for Enterprise, Trade and Innovation if he will ensure that a person (details supplied) in County Sligo will receive their redundancy payment as a matter of urgency; and if he will make a statement on the matter. [31814/10]

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 statutory redundancy lump sum claim on 8 April, 2010 in respect of the above individual. The claim awaits processing.

In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements, the current processing time for these claims is between 6 and 7 months and claims dating from February 2010 are currently being processed. Of course in some instances, where the necessary supporting documentation for lump sum claims is not provided to my Department, or where queries arise, processing of claims can be further delayed until the required documentation is provided and/or outstanding queries are resolved.

My Department continues to make every effort to reduce processing times. Measures already taken in the Department to alleviate the pressures on the Payments area include:

Almost doubling the number of staff working solely on redundancy payment claims through reassignment to a current level of 52 full time equivalents;

Prioritisation of the Department's overtime budget towards staff in the Section to tackle the backlog outside normal hours;

Establishment of a special call handling facility in NERA to deal with the huge volume of telephone calls from people and businesses concerned about their payments;

Better quality information relating to current processing times on the Department's website;

Engagement with the Revenue Commissioners to facilitate the offset of redundancy rebate payments by employers against existing outstanding tax liabilities which those employers owe to the Revenue Commissioners.

I would also point to the fact that in the 8-month period up to the end of August 2010, the number of claims processed by my Department was 51,800, a 96% increase compared to the corresponding period in 2009 (26,405) which also exceeds the total number of claims processed for the whole year 2009 (50,664).

Currently the weekly intake of new claims is an average of just over 1,200. Overall, new claims received in the first eight months of 2010 amounted to 43,449, a fall of just over 20% over the corresponding 8-month period in 2009 when 54,439 claims were lodged.

The claims backlog which reached its highest level at 43,000 in the latter quarter of 2009 has been reduced to a level of 32,137 at the end of August 2010 representing a reduction in the backlog of almost 11,000 claims.

Responsibility for the payment functions arising under the Redundancy and Insolvency payment schemes is due to be transferred to the Department of Social Protection with effect from 1 January 2011. In transferring the functions between Departments, it is the intention that this will operate seamlessly and without any adverse impact on the service levels being experienced by individuals or the business community awaiting payment of redundancy claims.

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