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Redundancy Payments

Dáil Éireann Debate, Tuesday - 1 December 2020

Tuesday, 1 December 2020

Questions (140)

Alan Kelly

Question:

140. Deputy Alan Kelly asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on the provisions of SI 349 of 2020 on redundancy payments. [28349/20]

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Written answers

In March 2020 the Government introduced an emergency amendment to the Redundancy Payments Act 1967 which effectively suspends an employee’s entitlement to claim redundancy from their employer following certain periods of lay-off or short-time work due to Covid-19 during the emergency period. The Government was concerned that the financial impact of significant redundancy claims at this time would have a serious impact on the potential for businesses, and the economy as a whole, to recover which in turn could result in significant insolvency and bankruptcy situations, with further permanent job losses.

The end date of the emergency period was defined as 31st May 2020, with the possibility of extending this by Government Order if required. The provisions of S.I. 349 of 2020 extended the end date from 17th September to 30th November 2020.

The Government has further extended the end date to 31st March 2021. This was a difficult decision to make and I know it will be disappointing for those employees who are experiencing uncertainty and who were hoping to claim redundancy from their employers before the end of the year. But in making this decision, the Government had to consider the need to ensure businesses survive and that permanent job losses are avoided as much as possible.

It is considered that an extension of the end-date continues to be important for employees to ensure that they have a continued link to their job and a pathway to return. The Pandemic Unemployment Payment will remain open until the end of March 2021 in order to support affected employees as will the Employment Wage Subsidy Scheme.

All other redundancy provisions remain unchanged and in force. If an employer is going to make an employee redundant, protections such as notice periods for redundancy and the payment of a redundancy lump-sum to the affected employee still apply and the existing suite of employment rights legislation remains in place.

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