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Redundancy Payments

Dáil Éireann Debate, Wednesday - 5 February 2014

Wednesday, 5 February 2014

Questions (87)

Paul Connaughton

Question:

87. Deputy Paul J. Connaughton asked the Minister for Social Protection the time limit for applying for statutory redundancy; if a person who left work because they became terminally ill may apply for statutory redundancy after a period of five years has elapsed; and if she will make a statement on the matter. [5773/14]

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Written answers

The purpose of the redundancy payments scheme is to compensate workers, under the Redundancy Payments Acts for the loss of their jobs by reason of redundancy. It is the employer’s responsibility to make statutory redundancy payments to its eligible employees.

The time limit for an employee to make a statutory redundancy lump sum claim is 52 weeks after the date of termination of employment. The Employment Appeals Tribunal can extend the time limit to 104 weeks from the date of termination of employment where evidence is provided that the delay in submitting the claim arose through reasonable cause.

In order to qualify for a statutory redundancy payment, an employee must:

- have at least two years continuous service;

- be in employment which is insurable under the Social Welfare Acts;

- be over the age of 16; and

- have been made redundant as a result of a genuine redundancy situation.

In the first instance, it is up to the employer to determine if a genuine redundancy situation exists. In general, this means that the job no longer exists and the person is not replaced. This can occur where, for example, an employer requires fewer employees to do work of a particular kind, where a company goes into liquidation or receivership, where it is decided to rationalise a business or where a business simply closes down.

A person who voluntarily resigns, or resigns due to ill-health, would not satisfy the legislative conditions governing the redundancy scheme and so could not be viewed to have been dismissed by reason of redundancy. Accordingly, such a person would not be entitled to a statutory redundancy payment.

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