Written answers
Tuesday, 31 January 2012
Department of Social Protection
Insolvency Payments Scheme
9:00 pm
Willie O'Dea (Limerick City, Fianna Fail)
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Question 330: To ask the Minister for Social Protection the reason a person (details supplied) who was awarded €15,000 by the rights commissioner in compensation for being unfairly dismissed from their employment should have the compensation reduced to €10,398 by the insolvency payments section of her Department; and if she will make a statement on the matter. [4900/12]
Joan Burton (Dublin West, Labour)
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The insolvency payments scheme is a scheme to protect pay-related entitlements of employees whose employer has become legally insolvent as defined in the scheme. Some limitation and conditions apply to payments made under the scheme. All entitlements based on pay are limited to a maximum weekly rate which is revised periodically. Awards made by a rights commissioner are subject to these limits. The current limit where insolvencies occurred on or after 1 January 2005 is €600 per week. The award made to the person concerned was reduced to €10,398 in accordance with this limit.
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