Dáil Éireann Debate, Tuesday - 2 November 2021
299. Deputy Robert Troy asked the Minister for Finance if the Finance Bill 2021 contains measures to assist businesses that have ceased trading as a result of the Covid-19 pandemic with the cost of redundancy payments. [53335/21]
View answerI am advised by the Minister for Enterprise, Trade and Employment that in situations where employers are genuinely unable to meet their financial obligations, due to Covid-19 or any other reason, in paying statutory redundancy to their employees due to financial difficulties or insolvency, the State can fund statutory redundancy payments from the Social Insurance Fund (SIF) on their behalf.
An application for payment may be submitted to the redundancy payments scheme of the Department of Social Protection. The employer is required to provide evidence of their inability to pay redundancy, such as a Statement of Affairs or verified financial accounts. When such a redundancy payment is made from the Social Insurance Fund, a debt is raised against the employer.
In order to support employers, a flexible and discretionary approach will be taken in relation to recovery of the redundancy debt. The Department of Social Protection will engage with employers directly and each case is assessed on its own merits. A mutually agreed repayment plan can be put in place, including repayments by instalment to ensure financial hardship is minimised. In many cases the debt can be repaid over a number of years.
In insolvency situations, such as liquidations, the Minister for Social Protection becomes a preferential creditor and the redundancy debt recovery is managed in the insolvency process under company law provisions.
There are no further measures proposed in Finance Bill 2021.
