John Browne (Wexford, Fianna Fail)
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Question 10: To ask the Minister for Social Protection the total amount of money given in rebates to employers for redundancy payments in the years 2006, 2007, 2008, 2009, 2010 and to date in 2011; her plans to review the rebate system; if she has had discussions with employer groups on the issue in relation to budget 2012; if a cost impact analysis on business has been undertaken; and if she will make a statement on the matter. [36294/11]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 15: To ask the Minister for Social Protection her views on whether any significant reduction in the size of the redundancy rebate to employers would have a knock-on effect on the size of redundancy payments made to workers who lose their jobs and that it risks pushing greater numbers down to the statutory level in view of the fact that more employers will not be in a position to offer anything in excess of the bare minimum. [36248/11]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 10 and 15 together.

The total amount paid out in redundancy rebates to employers was €152.2 million in 2006; €167.4 million in 2007; €161.8 million in 2008; €247.9 million in 2009; €373.2 million in 2010 and €185.3 million so far in 2011. The purpose of the Redundancy Payments Scheme is to compensate workers, under the Redundancy Payments Acts, 1967 to 2007, for the loss of their jobs by reason of redundancy. Compensation is based on the worker's length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week.

Statutory redundancy lump sums are generally paid by the employer who is then entitled to a rebate from the State of 60% of the relevant amount. In cases of employer default, the statutory redundancy lump sum entitlement is paid in full to the employee. Rebates to employers and lump sums paid directly to employees are paid from the Social Insurance Fund (SIF).

I do not accept that any reduction in the size of the redundancy rebate would necessarily reduce the size of redundancy payments made to workers. Many employers are anxious to ensure that their former employees are adequately compensated in the event of redundancy and pay their former employees in excess of the statutory minimum. It should be noted that redundancy rebate payments to employers are not common in many EU and other jurisdictions. In the UK for example, the redundancy payment is funded 100% by the employer and there is no recovery from the State.

Any changes to the redundancy payments scheme would have to be considered in a budgetary context. Redundancy claim levels decreased substantially in 2010 to 58,731 claims from a peak of 77,000 claims in 2009.

Redundancy Claims and Expenditure 2002 - 2011