Written answers

Tuesday, 15 October 2024

Department of Enterprise, Trade and Employment

Redundancy Payments

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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252. To ask the Minister for Enterprise, Trade and Employment if avenues are available for an employee to still avail of the national redundancy scheme. [41139/24]

Photo of Emer HigginsEmer Higgins (Dublin Mid West, Fine Gael)
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The Redundancy Payments Act 1967, as amended, provides for a minimum statutory lump sum payment to all eligible employees in situations of redundancy.

In order to be eligible for a statutory redundancy payment, an employee must have at least two years’ continuous service with an employer, excluding any period of employment with that employer before the age of 16 years, and be in employment which is insurable under the Social Welfare Acts.

An eligible employee is entitled to 2 weeks’ pay for every year of service, plus an additional week’s pay. Weekly pay for this purpose is subject to a maximum ceiling of €600 per week.

It is the employer’s responsibility in the first instance to pay statutory redundancy to eligible workers. If employers are genuinely unable to pay redundancy due to financial difficulties or insolvency, the State provides a safety net and may make the statutory redundancy payments on the employer’s behalf from the Social Insurance Fund through the Redundancy Payments Scheme. The scheme is administered by the Department of Social Protection.

If an employer disputes that a redundancy situation exists or refuses to pay statutory redundancy, an employee can make a complaint to the Workplace Relations Commission (WRC). Complaints must be made within 1 year of the date of dismissal. The WRC can extend this time period to 2 years if the employee can demonstrate reasonable cause.

If an employer refuses to pay after the WRC makes an award of statutory redundancy, the employee can apply directly to the Department of Social Protection for payment from the Redundancy Payments Scheme.

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