Written answers

Tuesday, 29 September 2020

Department of Employment Affairs and Social Protection

Covid-19 Pandemic Unemployment Payment

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

549. To ask the Minister for Employment Affairs and Social Protection if a redundancy waiver or similar intervention will be reintroduced for the duration of the Covid-19 pandemic unemployment in view of the fact they are not in a position to pay redundancies to their staff with zero income; and if she will make a statement on the matter. [26535/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In March 2020 the Government introduced an emergency amendment to the Redundancy Payments Act 1967 in order to ensure the future viability of businesses and help prevent permanent job losses.  As a result of Covid-19 there have been immediate and unprecedented volumes of temporary lay-off and short time work situations.  Under the existing provisions these lay-off and short-time situations could result in significant redundancy claims on employers in a very short period of time.  Employers are obliged to pay redundancy entitlements to employees who have been temporarily laid off or placed on short-time work after a period of time.

The emergency measure effectively suspends these provisions where the lay-off or short time work arose as a result of Covid-19 during the emergency period.  In light of the on-going emergency situation, the Government decided to further extend the temporary suspension until 30th November 2020 in order to support businesses in continuing to recover and re-open and plan their future staffing requirements.

Other than this important intervention, there are no plans to introduce any other changes to redundancy law.  Other existing redundancy provisions remain unchanged and in force and employee protections such as notice periods for redundancy and the payment of a redundancy lump-sum still apply.

In situations where an employer is making employees redundant but their business cannot bear the cost of redundancy payments at the moment due to immediate trading difficulties, there is provision for the Department to pay the employees their statutory entitlement on behalf of the employer from the Social Insurance Fund. When such a redundancy payment is made from the Fund, a debt is raised against the employer.  The Department will engage with employers on a case by case basis to recover the debt on a mutually-agreed, phased basis, repaying by instalment, as appropriate.

Photo of Pádraig O'SullivanPádraig O'Sullivan (Cork North Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

550. To ask the Minister for Employment Affairs and Social Protection when backdated pandemic unemployment payments will issue to all recipients who incorrectly had their pandemic unemployment payments reduced; and if she will make a statement on the matter. [26561/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Pandemic Unemployment Payment was introduced as an emergency measure to provide an income support to those who had lost their employment as a result of Covid.  In order to ensure that the scheme was simple and accessible for the unprecedented number of applicants, a flat payment rate was introduced.

From 26 June 2020, the Pandemic Unemployment Payment moved to 2 rates of payment.  This change more closely linked the rate of payment to the amount that individuals previously earned.

For employees, the greater of their gross weekly earnings in either 2019 or January to February 2020 was used to determine the rate of pandemic unemployment payment.  

For self-employed people a different approach was required, based on their average weekly income for 2018 as this was the last tax year for which verifiable data on self-employed income was available.  

As the Deputy will be aware, I subsequently asked my officials to ensure that where self-employed income for 2019 was available, this was also taken into account.

Any person who felt that the assessment of their earnings, based on returns already submitted to Revenue, was inaccurate could ask for a review of their case.  As of 18 September, 1,064 individuals have had their rate of payment increased of foot of requests for reviews.  

In addition, a detailed examination of all cases was undertaken by the Department to take account of updated income details where these had become available.  This identified a further 3,885 currently awarded claims where the rate of payment should have remained at €350 from 26 June 2020.  Arrears issued to those customers on 22 September . In addition, approximately 5,800 closed claims where the rate of payment should have remained at €350 from 26 June 2020 were identified and arrears are due to issue to those customers on 29 September.

I hope this clarifies the matter for the Deputy.

Comments

No comments

Log in or join to post a public comment.