Bernard Durkan (Kildare North, Fine Gael)
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253. To ask the Minister for Employment Affairs and Social Protection the way in which it is expected that a person (details supplied), previously a director of their company whose business has been wound up, is deemed to have an ability to meet a payment of €8,827.83 arising from redundancy and insolvent payment schemes in view of the fact that their only income is a State pension; and if she will make a statement on the matter. [44497/17]

Regina Doherty (Meath East, Fine Gael)
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It is the employer’s responsibility to pay statutory redundancy and other wage related entitlements to all eligible employees. In the event that an employer is unable to pay these entitlements due to financial difficulties, the Department can step in to make a payment from the Social Insurance Fund, as part of the redundancy and insolvency payments schemes.

When a payment is made from the Social Insurance Fund, a debt is immediately raised against the employer. The Department is obliged to make every effort to recover the debt owed to the Social Insurance Fund, in line with its debt management policy.

In cases where the employer is a company which has become insolvent, the recovery of debt is pursued as part of the liquidation process, where the Department is a preferential creditor. Where the employer is a sole trader or partnership, the Department engages directly with the person concerned to ascertain their current financial situation and their capacity to repay the debt. Where appropriate, an agreed repayment plan can be put in place to minimise financial hardship; for example, the debt can be recovered by way of instalments over a period of time.

I would strongly urge the person in question to engage with the Department to discuss their financial situation. They can contact the Department on (01) 673 4549 or at debtmanagement@welfare.ie .

I hope that this clarifies the matter for the Deputy.