Dáil Éireann díospóireacht -
Tuesday, 20 Oct 1992

Vol. 423 No. 8

Written Answers. - Redundancy Payments.

Michael Bell

Ceist:

222 Mr. Bell asked the Minister for Social Welfare if the £12,000 ruling for redundancy payments and the consequent disqualification for unemployment benefit for nine weeks in accordance with Statutory Instrument No. 189 of 1992 was agreed with the social partners in accordance with the Programme for Economic and Social Progress; if the £12,000 cut-off is the statutory payment in accordance with the Redundancy Acts or if it includes all payments agreed between trade unions on behalf of redundant workers; and if he will make a statement on the matter.

Minister for Social Welfare (Mr. McCreevy)

Section 29 of the Social Welfare Act, 1992 provides that a person under the age of 55 years who receives a redundancy payment in excess of a prescribed amount may be disqualified from receiving Unemployment Benefit for up to nine weeks. An amount of £12,000 was prescribed for this purpose in the Social Welfare (Unemployment Benefit) Regulations, 1992 (S.I. No. 189 of 1992) which became effective from 20 July 1992.

The concerns of the social partners in relation to this provision were discussed with them on a number of occasions. They were not in agreement with the proposal but in fixing the £12,000 limit I took into account the concerns which were expressed.

The amount of £12,000 specified in regulations includes both statutory and non-statutory payments under the Redundancy Payments Acts and also anyex-gratia lump sum payments agreed between workers and their employers.