On 1 January 2011, the Department assumed responsibility for making redundancy payments from the Social Insurance Fund. There are two types of redundancy payment made from the fund i.e. rebates to those employers who have paid statutory redundancy to eligible employees and statutory lump sums to employees whose employers are insolvent and/or in receivership/liquidation.
I wish to advise the Deputy that there is no current record of a valid redundancy claim on the Redundancy Payments System in respect of the individual in question. There is a record of a redundancy payment in respect of the individual concerned dating from 2001. It is normal practice not to enter incomplete claims on the system as these claims cannot be processed until the necessary documentation is submitted. Forms are returned in order for missing details and/or supporting documentation to be submitted. Submission of correctly completed redundancy claim forms (RP50's) with all of the required documentation greatly facilitates the processing.
The onus is on the employer in the first instance, to pay eligible employees their redundancy entitlements. The employer is then entitled, by virtue of contributions to the Social Insurance Fund, to recover 60% of the amount paid to the employee. However, i n circumstances where the employer is unable to pay a redundancy entitlement, a claim may be lodged by the employee. It is necessary to provide proof of the employer's inability to pay the redundancy entitlement. Such proof could consist of a statement from the company's accountant or solicitor attesting to the inadequacy of assets to make the redundancy payment and/or the latest set of financial accounts for the company. The employer is also asked to admit liability for the 40% portion attaching to the company arising from the redundancy payment.
If the necessary information is provided, the employee is paid the appropriate redundancy entitlement from the Social Insurance Fund. Upon payment, the Department pursues the company for the 40% share that the company would ordinarily have been expected to pay to the employee.
If the necessary supporting documentation is not provided, the employee is advised to take a case to the Employment Appeals Tribunal (EAT) against the employer to seek a determination establishing the employee's right and entitlement to redundancy. If a favourable determination is made, the Department is then in a position to make the payment to the employee concerned. Should the outstanding documentation be provided by the employer while the case is pending a hearing before the EAT, this would allow the claim to be processed in the usual way.