Dáil Éireann Debate, Tuesday - 2 November 2021
115. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he is satisfied that entitlements to redundancy payments will not be affected other than during the period of lockdown and that actual entitlement will be met in full; and if he will make a statement on the matter. [48450/21]
View answerStatutory redundancy entitlements are provided for in the Redundancy Payments Act 1967. Section 12A of the Act is the provision which temporarily suspended an employee’s entitlement to make a claim for redundancy following periods of lay-off or short time work as result of Covid-19. This provision expired on 30 September 2021 and the employee right has been reinstated.
All other provisions of the Act remained in force for the duration of the emergency period. If an employer makes an employee redundant, protections such as the payment of a redundancy lump-sum to the affected employee apply.
In order to qualify for a statutory redundancy payment, an employee must have 104 weeks continuous employment, be an employed contributor in employment which was insurable for all benefits under the Social Welfare Acts and be over the age of 16.
An eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. The redundancy lump sum calculation is based on the worker’s length of reckonable service and weekly remuneration, which is subject to a ceiling of €600 per week.
It is the employer’s responsibility to pay statutory redundancy payments to eligible employees. However, in situations where an employer is unable to pay these entitlements due to financial difficulties or insolvency an application for payment under the Redundancy Payments Scheme may be submitted to the Department of Social Protection. That Department can then make the statutory redundancy payment to eligible employees on behalf of the employer and will seek recovery of the debt.
The necessary Government-enforced lockdowns caused lay-off situations which resulted in a loss of reckonable service for employees. Therefore the Government have agreed that in situations of redundancy the State will make a payment in respect of specific periods of lay-offs due to Covid-19 and where the employee was in receipt of PUP or a jobseekers payment. It is expected that this new scheme will be in operation in the first half of 2022.
