Dáil Éireann debate -
Tuesday, 4 Feb 1997

Vol. 474 No. 3

Written Answers. - Community Employment Schemes.

Eric J. Byrne

Question:

227 Mr. E. Byrne asked the Minister for Enterprise and Employment his response to claims that sponsors of community employment projects may be liable for payment of redundancy claims when their participants have completed their training after three years; if there is any validity to this claim; and if he will make a statement on the matter. [2811/97]

Minister for Enterprise and Employment (Mr. R. Bruton)

Full (class A) social insurance was extended to community employment (CE) workers with effect from 6 April 1996. One of the effects of this change in social insurance class is that sponsors may become liable for the payment of redundancy under the provisions of the redundancy Acts.

Redundancy payments are designed to give financial assistance to workers while they make the transition from a job, which had become redundant, to a new job. CE is a labour programme designed to help persons make the transition from unemployment to employment, so redundancy payments would clearly be inappropriate.

When I was made aware of this anomaly I decided to use the powers available to me under section 4 (4) of the Redundancy Payments Act, 1967 to exclude by ministerial Order, CE workers from the scope of the Act. The order is being prepared by my Department at present and I expect that it will be signed shortly.