Written answers

Tuesday, 22 March 2011

Department of Social Protection

Redundancy Payments

9:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 121: To ask the Minister for Social Protection the position regarding the payment of statutory lump sum redundancy in respect of a person (details supplied) in County Cork. [5040/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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On 1 January 2011, my Department assumed responsibility for making redundancy payments from the Social Insurance Fund. There are two types of redundancy payment made from the fund i.e. 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 there is no record of a valid redundancy claim on the Redundancy Payments System in respect of the individual in question. It is normal practice not to enter incomplete claims on the system as these claims cannot be processed until the necessary documentation is submitted. Forms are returned in order for missing details and/or supporting documentation to be submitted. Submission of correctly completed redundancy claim forms (RP50s) with all of the required documentation greatly facilitates the processing of claims.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 122: To ask the Minister for Social Protection the position regarding the payment of a redundancy rebate in respect of a person (details supplied) in County Cork. [5105/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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On 1 January 2011, the Department of Social Protection assumed responsibility from the Department of Enterprise, Trade and Innovation for administering the redundancy payments scheme.

The position in relation to this matter is that the company in question sought a redundancy rebate in respect of an employee of the company. This request was received in April 2009. Following failure by the company to respond to requests from the Department of Enterprise, Trade and Innovation to confirm that statutory redundancy had been paid to the employee concerned, payment issued on behalf of the employer to the employee from the Social Insurance Fund (SIF). In such cases, the employer is liable for 40% of the payment.

Subsequently, following contact from the Employment Appeals Tribunal regarding an application from the employee for a declaration of redundancy, the company paid the employee his entitlements. This resulted in the employee being paid twice in respect of the same redundancy. The redundancy rebate, however, is due only in respect of one payment.

In the interim, the company had agreed with the Revenue Commissioners that it would agree to pay outstanding tax monies from the redundancy rebate it was owed. This offset arrangement was facilitated in this case and the money, less the 40% liability in respect of the payment to the employee, was paid directly to the Revenue Commissioners from the SIF.

The issue of the double payment is a matter for the company to resolve with its former employee and the Department has no further function in the matter.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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Question 123: To ask the Minister for Social Protection the position regarding redundancy payment in respect of a person (details supplied); and if she will make a statement on the matter. [5107/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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On 1 January 2011, my Department assumed responsibility for making redundancy payments from the Social Insurance Fund. There are two types of redundancy payment made from the fund i.e. 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 a statutory redundancy lump sum claim in respect of the individual concerned was received on 7 March, 2011 and is pending processing.

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