Ciarán Lynch (Cork South Central, Labour)
Link to this: Individually | In context

Question 342: To ask the Minister for Enterprise, Trade and Innovation when a claim for redundancy payment from the social insurance fund made by a person (details supplied) in County Cork will be decided; when payment will be made; and if he will make a statement on the matter. [43570/10]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

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 can confirm that my Department received a statutory redundancy lump sum claim in respect of the individual concerned on 24 May, 2010. This 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 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.

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.

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 ten months of 2010 was 63,484 – up over 66 % on the corresponding 10-month period in 2009 (38,149) and surpassing the total amount of claims processed for the full year 2009. The backlog of claims is decreasing - reducing from its highest level in November 2009 of 43,608 to a current level of 28,300.

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.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

Question 343: To ask the Minister for Enterprise, Trade and Innovation the reason for a delay in the payment of redundancy to a person (details supplied) in County Donegal; and if he will make a statement on the matter. [43571/10]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

I am pleased to advise the Deputy that my Department has recently authorised this redundancy lump sum claim on behalf of the individual concerned. Payment of the redundancy amount due is expected to issue within the next few weeks.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

Question 344: To ask the Minister for Enterprise, Trade and Innovation if a person (details supplied) in County Limerick has an entitlement to redundancy under statutory redundancy as they cannot make contact with their former employer who has closed the business and if he will expedite a response on the basis that the former employer cannot be contacted. [43597/10]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

Under the Redundancy Payments Scheme, all eligible employees are entitled to a statutory redundancy lump sum payment on being made redundant. The entitlement to statutory redundancy is an employment right, and is available to any employee over the age of 16 who is a class A contributor in insurable employment with the employer for a period of two years prior to the date of termination of employment. Eligible employees are entitled to two weeks pay for every year of service, plus a bonus week, subject to a maximum ceiling of €600 on gross weekly pay.

A redundancy situation arises in general where an employee's job no longer exists and he/she is not replaced. It is up to the employer concerned in the first instance to determine whether or not in fact a redundancy situation obtains and to submit to my Department an application form (RP50) completed and signed as appropriate by the employer and employee. This form can be downloaded from the Department's website at www.entemp.ie Disputes in relation to statutory redundancy entitlement can be referred to the Employment Appeals Tribunal (EAT) for adjudication.

If it is the case that the individual considers that an entitlement to statutory redundancy exists and has sought and been refused statutory redundancy or if the employer refuses or neglects to complete the necessary documentation to allow a claim to be lodged with my Department, the individual concerned may seek a determination on his right and entitlement to redundancy by applying directly to the Employment Appeals Tribunal (EAT). The Tribunal offices are located at Davitt House, Adelaide Road, Dublin 2. Please note that an employee must make application for redundancy payment or seek a determination from the EAT within twelve months of ceasing employment, although the EAT has the power to extend the deadline from 52 weeks to 104 weeks. The 52 week deadline applies both to the making of a claim to the employer and to the making of a claim to the EAT in a situation where the employer disputes payment of redundancy.

A claim can be made to the EAT by submitting a form T1-A directly to the Tribunal. These forms can be obtained from the EAT website http://www.eatribunal.ie .

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context

Question 345: To ask the Minister for Enterprise, Trade and Innovation when a person (details supplied) in County Cork will receive their redundancy payment; and if he will make a statement on the matter. [43730/10]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

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.