Written answers

Wednesday, 29 September 2010

Department of Enterprise, Trade and Innovation

Redundancy Payments

11:00 pm

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 1719: To ask the Minister for Enterprise, Trade and Innovation the position regarding an application for statutory redundancy payment in respect of a person (details supplied); and if he will make a statement on the matter. [33235/10]

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 on the basis of valid claims entered in the Redundancy Payments System in my Department, there is no record of a redundancy claim having been received in respect of the individual in question. Application should be submitted to my Department on an RP50 form completed and signed as appropriate by the employer and the employee. This form can be completed online or downloaded from the Department's website at www.entemp.ie. In the case of forms submitted online, it is necessary also to submit a signed hardcopy of the form. Claims are not imported onto the Redundancy Payments System until a signed copy is received.

It is also my Department's practice not to enter incomplete claims on the system as these claims cannot be processed until the necessary documentation is submitted. Forms are returned to allow missing details and/or supporting documentation to be submitted. The documentation required in support of lump sum claims, 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.

Photo of Catherine ByrneCatherine Byrne (Dublin South Central, Fine Gael)
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Question 1720: To ask the Minister for Enterprise, Trade and Innovation if he has received an application for a statutory lump sum from the Social Insurance Fund in respect of a person (details supplied) in Dublin 8; when a decision will be made in this case; and if he will make a statement on the matter. [33396/10]

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 on the basis of valid claims entered in the Redundancy Payments System in my Department, there is no record of a redundancy claim having been received in respect of the individual in question. Application should be submitted to my Department on an RP50 form completed and signed as appropriate by the employer and the employee. This form can be completed online or downloaded from the Department's website at www.entemp.ie. In the case of forms submitted online, it is necessary also to submit a signed hardcopy of the form. Claims are not imported onto the Redundancy Payments System until a signed copy is received.

It is also my Department's practice not to enter incomplete claims on the system as these claims cannot be processed until the necessary documentation is submitted. Forms are returned to allow missing details and/or supporting documentation to be submitted. The documentation required in support of lump sum claims, 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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