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Company Liquidations

Dáil Éireann Debate, Wednesday - 27 January 2021

Wednesday, 27 January 2021

Questions (517)

Kieran O'Donnell

Question:

517. Deputy Kieran O'Donnell asked the Minister for Social Protection if she will address a matter (details supplied) regarding the liquidation of a company; and if she will make a statement on the matter. [4133/21]

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Written answers

The Redundancy Payments Act 1967 as amended gives an entitlement to employees who have been made redundant and have at least two years’ service with their employer. It is the employer’s responsibility to pay statutory redundancy payments to those employees that qualify. Where an employee feels that they are entitled to a redundancy payment in accordance with the Act, they should make an application to their employer, or as in this case, to the employer representative which will be the liquidator.

Where a business is not in a position to pay redundancy, the business or their representative may make an application under the Redundancy Payments Scheme to the Department of Social Protection. Further information is available on www.gov.ie. Enquiries relating to the scheme can be sent to redundancypayments@welfare.ie.

As the Deputy will appreciate I cannot refer to a particular case. However I understand the issue of concern relates to eligibility under the Redundancy Payments Scheme where certain PRSI contributions have been paid. At a general level, I can confirm that in most cases company directors, who were paying class S PRSI contributions at the time of the termination of employment will not qualify for payment under the Redundancy Payments Scheme.

Policy responsibility for the Redundancy Payments Acts transferred to the Minister for Enterprise, Trade & Employment on 14th October 2020. General enquiries in respect of employee rights under the Act should be sent to the Department of Enterprise, Trade and Employment.

Question No. 518 answered with Question No. 493.
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