asked the Minister for Social Welfare if he will make a statement regarding unemployment benefit and pay-related benefit paid to an employee who is out of work for a period, due to dismissal which is found to be unfair where an employee is (a) paid compensation or (b) reinstated or re-engaged in his employment; the effect on his insurance record and credits; if the employee concerned refunds to the Department the amount of social welfare benefit received in those circumstances; and if it is the practice of his Department to facilitate the re-payment of unemployment insurance benefit in such cases; and if he will make a statement on the matter.
Written Answers. - Social Welfare Benefits.
13.
The legislative provisions governing unfair dismissals are set out in the Unfair Dismissals Act, 1977. The regulations made under that Act, together with the administrative procedures for the manner of calculation of compensation, are a matter for the Minister for Labour.
It is understood from the Department of Labour that the vast majority of awards made by rights commissioners or by the employment appeal tribunal are by way of compensation. Where compensation is payable, the amount of any unemployment benefit received in the interim by the employee is taken into account in calculating the amount payable. Where the award made by the rights commissioner or by the tribunal takes the form of reinstatement or re-engagement in the former employment, the employer in such cases is required to restore wages to the person concerned from the date of reinstatement or re-engagement. It is understood that the employer may deduct any unemployment benefit paid from the arrears of wages due. The arrears payable are subject to deduction of income tax and Pay-related Social Insurance contributions and the employee, therfore, is awarded a "paid" contribution for each week for which arrears of wages are paid.
Persons who have been dismissed from their employments are entitled to unemployment benefit, if otherwise qualified, from the date of their claim unless it is decided by a deciding officer of the Department that they lost their employment through their own misconduct. In this event they may be disqualified from receiving benefit for up to six weeks. Credited social insurance contributions are awarded in respect of each week of proved unemployment, whether or not the claimant is subject to a disqualification of the kind mentioned.
Title to benefit properly payable in respect of a period of unemployment is not affected by subsequent events and there are no specific provisions in the social welfare legislation dealing with cases of unfair dismissals. Accordingly the question of a refund of unemployment benefit in respect of a period for which compensation or reinstatement is subsequently granted on foot of an unfair dismissal award does not arise.
As I have mentioned, in calculating the amount of compensation to be paid by them on foot of an unfair dismissals award, the terms of the unfair dismissals legislation apparently allow employers to deduct the amount of any unemployment benefit paid to the employee. This situation is anomalous in that an employer who has been found guilty of dismissing an employee unfairly can have his financial liability reduced where the employee is entitled to unemployment benefit. This matter is under consideration. Any change in the present arrangement would in the first instance be a matter for the Minister for Labour.