Peter Mathews (Dublin South, Fine Gael)
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Question 344: To ask the Minister for Social Protection her views on a matter (details supplied) regarding employer's rebate on redundancies; and if she will make a statement on the matter. [4996/12]

Joan Burton (Dublin West, Labour)
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The primary 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. It is the responsibility of the employers to pay statutory redundancy to all their eligible employees. An employer who pays statutory redundancy payments to the employees is then entitled to a rebate from the State. Rebates to employers and lump sums paid directly to employees are paid from the Social Insurance Fund. As part of the deliberations on Budget 2012 it was decided that the 60% level of rebate is not sustainable in the current economic climate. While this may cause difficulties for employers it should be noted that redundancy rebate payments to employers are not common in many EU and other jurisdictions. While I acknowledge that this change may cause difficulties for employers, it must be recognised that in the current economic climate, the 60% level of rebate is not sustainable.