Written answers

Thursday, 18 November 2010

Department of Enterprise, Trade and Innovation

Redundancy Payments

5:00 pm

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 168: To ask the Minister for Enterprise, Trade and Innovation the position regarding a redundancy claim in respect of a person (details supplied) in County Roscommon. [43478/10]

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 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.

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.

It is 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. Submission of correctly completed Redundancy claim forms (RP50's) with all of the required documentation greatly facilitates the processing of claims.

Under Redundancy legislation the onus, in the first instance, is on the employer to pay to the employee their redundancy entitlements. The employer is then entitled, by virtue of pay related social contributions to the Social Insurance Fund, to recover 60% of the amount paid to the employee.

In circumstances where the employer is unable to pay the redundancy entitlements, a claim can be lodged with the Department and 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 Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 169: To ask the Minister for Enterprise, Trade and Innovation further to Parliamentary Question No. 277 of 4 November 2010, if he will confirm information in respect of a person (details supplied) in County Leitrim is correct stating no application for redundancy payment has been received. [43495/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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In my earlier reply on this matter on 4 November, 2010, I indicated that, according to my Department's records, there is no record of a redundancy claim in respect of the individual concerned lodged with my Department. The individual concerned may have made application for a hearing before the Employment Appeals Tribunal (EAT) to establish the right and entitlement to redundancy payment.

The Employment Appeals Tribunal is an independent, quasi-judicial body under the aegis of my Department, and, as such, I have no role in its day-to-day operation. Enquiries concerning claims submitted to the Tribunal can be made directly with the Tribunal Secretariat by telephone at 01 6313006 or Lo Call 1890 220 222; by email at eat@entemp.ie or in writing at Davitt House, 65A Adelaide Road, Dublin 2.

Once an EAT determination in favour of the individual's claim is available, it should be forwarded with a completed redundancy claim form (RP50) to my Department to enable the Department to make payment to the individual concerned.

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.

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