Pat Deering
Question:104. Deputy Pat Deering asked the Minister for Finance if he intends to engage in further discussions with Irish Bank Resolution Corporation employees regarding redundancy payments. [15459/13]
View answerWednesday, 27 March 2013
Questions (104, 112)
Stephen Donnelly
Question:112. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 99 of 20 February 2013, if, in view of confirmation from the IBOA that the liquidator has told the union he can agree a solution to the severance terms issue provided the Minister instructs him to do so under section 9 of the IBRC Act 2013, he will instruct the liquidator to restore the value of the severance terms for Irish Bank Resolution Corporation employees; and if he will make a statement on the matter. [15562/13]
View answerWritten answers
I propose to take Questions Nos. 104 and 112 together.
The Special Liquidators have advised me that they are highly cognisant of the issues that the IBOA have been highlighting and that significant steps have already been taken to address those concerns, including the announcement on Tuesday 19 March by the Special Liquidators that contracts of staff would be extended out to 7 August with one month’s notice thereafter. This should provide significant reassurance to IBRC staff, relative to the common position in liquidations where staff contracts are terminated on liquidation.
As a result of the termination of the employment contracts, employees are entitled to apply for a statutory redundancy payment and a statutory notice payment, subject to the limits prescribed by statute. Any action taken by the Minister which might divert assets from IBRC creditors to employees could be challenged in the Courts.
I am advised that claim forms for statutory entitlements have now been distributed to all employees entitled to such claims.