Jim Mitchell
Question:16 Mr. J. Mitchell asked the Minister for Labour if he has plans to amend legislation dealing with redundancy matters; and if he will make a statement on the matter.
Ceisteanna-Questions. Oral Answers. - Amendment of Redundancy Legislation.
I have no plans at present for amendment of the Redundancy Payments Acts. The Acts were introduced to ensure that redundant employees receive basic payments in compensation for their loss of jobs and in recognition of their periods of service with their employers. The legislation has been very successful in achieving that objective.
The provisions of the Acts have been substantively amended in 1971 and 1979 and are now operating generally satisfactorily. Given the heavy legislative programme with which my Department are dealing on various fronts and the limited resources available to them, amendment of the Redundancy Payments Acts cannot be regarded as an immediate priority.
Is the Minister aware that, 15 months after people have been made redundant, and having received a lump sum, if they keep or invest that lump sum for the future, it is used to disqualify them from unemployment assistance and other means tested entitlements? Would the Minister acknowledge that these people are often advised to spend their lump sums quickly? Would he not agree that some form of amendment to the legislation should be introduced to prevent this happening?
I can understand that the Deputy is not giving out about the level of the statutory redundancy but rather that people have to spend it in a hurry to get over the means test. The amendment requested by Deputy Mitchell would be one for the social welfare side. I am not sure what can be done about the redundancy payments because they are the employees' legal and statutory entitlement.
Would the Minister consider an amendment exempting those who are prudent with their redundancy lump sums, who invest it for the rainy day or who try to husband it to look after their future needs, so that they will not be penalised after 15 months? Will he ensure that any redundancy money still in their possession will be disregarded for means test purposes?
That change would have to take place in the social welfare legislation on means testing. From the point of view of the redundancy fund, how it operates and how it assists individuals, I have been trying to ensure that the weekly threshold is kept up to date. I have no power under the Act to prevent that money from being included in the means test assessment.
Would the Minister not accept that, as Minister for Labour, he is the Minister who proposes redundancy, legislation? Is he aware that many personnel departments advise employees who have been made redundant to spend this money within 15 months otherwise they will lose out? There is enormous pressure on these people to buy what they do not want if they are not to lose out. The Minister for Labour should not try to pass this matter over to the Minister for Social Welfare. Would he not make some proposal to deal with this outrageous anomaly where those who are prudent are penalised and those who are profligate are rewarded?
If the amendment sought to extend the period beyond 15 months it might be of some assistance, but I am not sure how one would get around the difficulty.
I ask the Minister to introduce an amendment to the redundancy legislation which exempts redundancy payments from means testing assessment.
In relation to redundancy legislation, does the Minister intend to do anything to prevent and, indeed, discourage profitable companies from making people redundant with the sole purpose of increasing profitability? Jobs are being sold off at a time when we can ill afford it.
I would like to do something in that area because in the last few weeks we have seen people doubling their statutory redundancy figures to kill jobs forever rather than trying to maintain them. I have taken up that issue several times. I will look at the laws on means testing as requested by Deputy Mitchell and what is and is not governed by the Social Welfare Acts and take up the issue with my colleague to see whether he can extend the 15 month period. I will certainly look at that aspect.