Vol. 570 No. 2
96 Ms O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent survey from a company (details supplied) showing that redundancy payments here are well below the EU average; if she has plans to review the level of redundancy payments in view of this survey; and if she will make a statement on the matter. [18470/03]
My Department has received a copy of the survey from the company in question and has noted its contents. The report makes specific reference to the recent increase in statutory redundancy payments pursuant to the Redundancy Payments Act 2003. It states that "on 25 May 2003, the Irish Minister for Enterprise, Trade and Employment announced an amendment to the law in Ireland, providing for two weeks' statutory redundancy pay for every year of service regardless of age". It then gives comparative data concerning severance or redundancy pay in EU countries and in Japan, India and China.
Taking a typical example of a 40 year old white-collar employee made redundant after ten years' service on a salary of €30,000, it shows that Irish redundancy payments, while being less than those of Spain, Italy and Austria, are substantially greater than those of France, the UK, Luxembourg and Portugal. While it is true that when the monetary equivalent of the minimum notice period is added to the minimum level of severance – redundancy – payment, Ireland ranks below the EU average, the report acknowledges the recent substantial increase in statutory redundancy in Ireland.
Compared to the rates applicable before the Redundancy Payments Act 2003, the new, enhanced rates quadruple statutory redundancy payments in respect of service under the age of 41, up from one-half of a week to two weeks pay per year, and they double statutory redundancy payments in respect of service over the age of 41, up from one weeks to two weeks pay per year. These large increases received a warm welcome from employee representatives. I have, therefore, no plans to further increase the rates of statutory redundancy.
