Dáil Éireann Debate, Thursday - 12 January 2012
133 Deputy Michael McGrath asked the Minister for Social Protection the steps she has taken to resolve the dispute between the former employers of a company (details supplied) and its former employees in respect of the non-payment by the company of redundancy to the staff; and if she will make a statement on the matter. [1790/12]
View answer155 Deputy Michael McGrath asked the Minister for Social Protection when a decision will be made on the application by a company (details supplied) to the social insurance fund for payment of statutory redundancy payments to former employees; and if she will make a statement on the matter. [1789/12]
View answerI propose to take Questions Nos. 133 and 155 together.
Responsibility for the processing of claims under the Redundancy Payments Scheme transferred from the Department of Enterprise, Trade and Innovation to the Department of Social Protection in January 2011.
The purpose of the Redundancy Payments Scheme is to compensate workers under the Redundancy Payments Acts 1967 to 2007 for the loss of their jobs by reason of redundancy. Under the Redundancy Payments Acts an eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. Compensation is based on the worker's length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week. Employees must have at least two years' service to be eligible for a redundancy payment. Rebates to employers and lump sums paid directly to employees are paid from the Social Insurance Fund (SIF).
It is the responsibility of the employer to pay statutory redundancy to all eligible employees. An employer who pays statutory redundancy payments to employees is then entitled to a rebate from the State of a percentage of the relevant amount. Where an employer can prove to the satisfaction of the Department that he/she is unable to pay the statutory redundancy to his/her employees the Department will make lump sum payments directly to the employees and will seek to recover the debt from the employer. To prove inability to pay the employer must submit documentary evidence to confirm that this is the position.
An official from my Department contacted the company concerned to establish the position in relation to redundancy claims and to ensure that the workers of the company are in a position to access any redundancy payments to which they may be entitled. The company submitted 34 applications on-line on 22 December 2011 and hard copies/associated papers were received on 4 January 2012. Straightforward redundancy claims submitted since October 2011 are generally processed for payment within 6 to 8 weeks but this can vary considerably depending on the complexity of the claims.
