Dáil Éireann debate -
Thursday, 11 Feb 1999

Vol. 500 No. 3

Written Answers. - Pension Provisions.

John McGuinness

Question:

53 Mr. McGuinness asked the Tánaiste and Minister for Enterprise, Trade and Employment if the redundancy package offered to some of the employees of a company (details supplied) in County Carlow in 1984, who terminated their work with this company and took up immediate employment with another company (details supplied), will be investigated; if these redundancies were correctly paid under the Redundancy Payments Acts, 1967 to 1979, in view of the fact that these employees continued to work while the company was in receivership and when it was eventually taken over by new owners without a break in service; if these employees would have been better served to have their record of contributions considered for pensions purposes rather than redundancy at that time; if her Department will reply to a letter dated 6 November 1998 from a person (details supplied) in County Carlow who is one of the employees in question; and if she will make a statement on the matter. [3899/99]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. T. Kitt)

The Deputy indicates that employees in one company were made redundant and became, on the following day, employees of the new owners. I understand that the Deputy wishes to ascertain if the interests of the workers in relation to pension entitlements were adversely affected as a result of their having been made redundant prior to the transfer of the business.

I assume that the pension scheme referred to by the Deputy was a private scheme. Where there is a transfer pursuant to the Transfer of Undertakings Regulations, 1980, the rights and obligations arising from the employment contract are transferred to the new employer. However, there is no obligation to ensure continuity of the pension scheme in a change of ownership situation, although the interests of the employees under the previous pension must be protected. It is a matter for the new owners to ensure that these interests were, in fact, protected.

In relation to the letter from an employee, which was only received by my Department on 10 February 1999, a reply has issued.