Dara Calleary (Mayo, Fianna Fail)
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149. To ask the Minister for Social Protection following the liquidation of a company (details supplied) in Dublin 1, her views on redundancy entitlements for staff; the actions being taken by the Government in this regard; and if she will make a statement on the matter. [24742/15]

Joan Burton (Dublin West, Labour)
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The purpose of the Redundancy Payments Scheme is to compensate workers, under the Redundancy Payments Acts 1967 to 2013, for the loss of their jobs by reason of redundancy. An eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. Compensation is based on the worker’s length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week.

In order to qualify for a statutory redundancy payment, an employee must:

- have at least two years continuous service;

- be in employment which is insurable under the Social Welfare Acts;

- be over the age of 16 and

- have been made redundant as a result of a genuine redundancy situation meaning that the job no longer exists and he/she is not replaced.

In cases of liquidation, the statutory lump sum payment is paid in full to the employee(s) from the Social Insurance Fund. In such cases, the Department becomes a preferential creditor of the liquidation.

Insolvency Payments Scheme

The purpose of the Insolvency Payments Scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act, 1984, which, in turn, derives from EU Council Directive 987/80, is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer, i.e. where the company enters liquidation or receivership.

These entitlements include wages, holiday pay, sick pay, payment in lieu of minimum notice due under the Minimum Notice and Terms of Employment Act and certain pension contributions.Various other statutory awards, for example those made by the Employment Appeals Tribunal, Rights Commissioners are also covered by the Scheme.

Payments are calculated by reference to an employee’s wages and are subject to a maximum limit of €600 per week. Payments of arrears of wages, sick pay, holiday pay and minimum notice are limited to a maximum of 8 weeks.

All applications under the insolvency payments scheme must be made by the employer representative (normally a liquidator, receiver or administrator). Payments under the scheme will be paid through the employer representative of the company and any tax and PRSI deductions are usually made by them.

My Department will deal promptly with Redundancy and Insolvency applications in respect of the former employees of Clerys when they are received from the Liquidator KPMG.