Written answers

Tuesday, 12 May 2015

Department of Social Protection

Insolvency Payments Scheme Eligibility

Photo of Clare DalyClare Daly (Dublin North, United Left)
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258. To ask the Minister for Social Protection if she will provide a timeframe for the review of the insolvency payments scheme, specifically the promised review into the eligibility of former employees of companies which have been informally wound up without a liquidator, or receiver to apply for payment from the scheme, in view of the fact that such a review has been promised since 2013, and no results have, to date, been forthcoming; and if she will make a statement on the matter. [18623/15]

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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260. To ask the Minister for Social Protection if progress has been made on the review of eligibility for the insolvency payments scheme; and if she will make a statement on the matter. [18643/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 258 and 260 together.

My Department is continuing to review the position to establish what, if anything, can be done to progress payments to individuals in situations where employers cease trading without engaging in a formal winding-up process and who owe monies to their employees.

My Department is consulting with a range of interested parties including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners to establish what, if anything can be done to progress payments to individuals in these situations. To date officials from my Department have had one formal meeting with the various parties mentioned above in connection with this issue and continue to engage with all relevant parties to try to progress the matter.

However, I am not in a position to indicate when this review will be completed.

Photo of Clare DalyClare Daly (Dublin North, United Left)
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259. To ask the Minister for Social Protection in view of the review of the insolvency payments scheme not having being completed to date, the options available to a person (details supplied) in County Dublin, in order to access their entitlements. [18624/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The review of the Insolvency Payments Scheme to establish what, if anything, can be done to progress payments to individuals in situations where employers cease trading without engaging in a formal winding-up and who owe monies to employee(s) is continuing.

It is the responsibility of the employer to pay statutory redundancy entitlements to all its eligible employees. Where an employer can prove to the satisfaction of my Department that it is unable to pay the statutory redundancy to eligible employees my Department will make lump sum payments directly to the employees from the Social Insurance Fund and will then seek to recover the debt from the employer.

In order to process a redundancy lump sum payment from the Social Insurance Fund a fully completed application form, RP50, must be submitted which must be signed by both the employee and employer. While an RP50 application form, in respect of the person concerned, was submitted on 11 September 2014 it was not signed by the former employer and, therefore, it cannot be considered as a valid application.

Where a dispute situation arises between the employee and former employer, including a situation where the employer does not agree to complete and sign the RP50 redundancy form, it is open to the employee to lodge an appeal against the former employer with the Employment Appeals Tribunal (EAT) to adjudicate on entitlement to a statutory redundancy payment. The person concerned has advised my officials that he has lodged an appeal with the EAT in this regard.

In the event that the EAT determines that the person concerned is entitled to a statutory redundancy lump sum payment he should, in the first instance, contact his former employer to ascertain if the employer is in a position to pay the statutory redundancy entitlement to him. In the event that the former employer is unable or refuses to pay the statutory redundancy entitlement an RP50 application form should be submitted to my Department along with the EAT determination.

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