Written answers

Wednesday, 27 October 2010

Department of Enterprise, Trade and Innovation

Redundancy Payments

8:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 549: To ask the Minister for Enterprise, Trade and Innovation if he will confirm that there is an eight month delay from date of receipt of redundancy payments in his Department until payment is made to the person; his views on this delay and the measures he proposes to reduce this waiting time. [39022/10]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 550: To ask the Minister for Enterprise, Trade and Innovation if his attention has been drawn to the fact that in many companies which go into liquidation, there can be long delays in submitting claims for redundancy payments on behalf of employees who have lost their jobs (details supplied); and if he will make a statement on the matter. [39023/10]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 553: To ask the Minister for Enterprise, Trade and Innovation the number of individuals who were given redundancy payments by his Department in each of the years 2006, 2007, 2008, 2009 and to date in 2010. [39118/10]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 554: To ask the Minister for Enterprise, Trade and Innovation the cost to his Department of redundancy payments for each of the years 2006, 2007, 2008, 2009 and to date in 2010. [39119/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 549, 550, 553 and 554 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 April 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, the current processing time for these claims has improved and claims dating from April 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.

It can indeed be the case, as pointed out by the Deputy, that in the instance of companies going into liquidation there can be a delay in the submission of employees' claims by the Liquidators to my Department. This is unfortunately something that is completely outside of my Department's direct control. It is my Department's policy to process redundancy claims in order of date of receipt.

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.

Table 1 sets out the number of statutory redundancies for which claims were received by my Department for the years 2006 to 2009 and provisional figures for the period January to September, 2010. These figures reflect the number of employees who actually qualified for statutory redundancy lump sum payments. They do not reflect those who lost their jobs with less than two years service in employment. Unfortunately, I am unable to give a breakdown as between claims that were made payable directly to individuals as opposed to rebate payments to employers as my Department does not collate the figures on this basis.

Table 2 sets out the monies paid out of the Social Insurance Fund in respect of redundancy claims for the years 2006 - 2009 and up to 30 September 2010. It should be noted that all figures provided for 2009 and to date in 2010 are provisional figures.

During the period January to September 2010, 47,587 claims were received and 58,202 (with an attendant value of €363m) were processed, an increase of 81% on the corresponding 9 month period in 2009 (32,127). In 2009, claims processed amounted to 50,664 so that at this point the level of claims processed has exceeded the levels achieved in 2009.

The backlog and waiting times remain at unacceptable levels. However, improvements are evident. In 2009, my Department processed 50,664 claims, up 70% on the previous year. Furthermore, the level of new claims processed in the first nine months of 2010 was 58,202 – up over 81% on the corresponding 9-month period in 2009 (32,127) and surpassing the total amount of claims processed for the full year 2009 which came to 50,644. The backlog of claims is decreasing - reducing from its highest level in November 2009 of 43,608 to a current level of 29,776.

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.

Table 1: Actual Statutory Redundancies for years 2002 to 2009 and up to end September, 2010 edundancies for years 2002 to 2009 and up to end September, 2010

YearNumber of Redundancy Claims
200623,684
200725,459
200840,607
200977,001
201047,587*
* Provisional figures

Table 2: Expenditure on Statutory Redundancies for years 2002 to 2009 and up to end September, 2010

(€000)

YearExpenditure on Statutory Redundancy
2006166,483
2007183,328
2008193,711
2009335,861*
2010363,284*
*All figures for 2009 and 2010 are provisional subject to audit

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