Vol. 566 No. 2
12 Ms McManus asked the Tánaiste and Minister for Enterprise, Trade and Employment when it is intended to introduce the promised legislation to improve statutory redundancy terms, especially having regard to the commitments given in Sustaining Progress; and if she will make a statement on the matter. [12272/03]
The position is that the Government approved the Bill on 30 April 2003, to give effect to the new enhanced redundancy payments scheme. The Bill was published on 7 May 2003.
The proposed new legislation will allow for the following: the distinction between service under and over 41 years; two weeks pay for every year of service; the bonus week will be retained; rebate of 60% to the employer; simpler method of calculating service; changes in treatment of absences from work; treatment of service abroad; simplification of application forms; new IT system, including e-government aspect; and employees of insolvent companies to make claims for minimum notice entitlements under the insolvency payments scheme without having to obtain an award from the Employment Appeals Tribunal.
It is my firm intention to bring the increased statutory payments into effect at the earliest possible date.
Pending the enactment of the new legislation, the existing statutory redundancy terms remain operative. Backdating is not possible because the redundancy scheme places obligations on employers and confers rights on employees. The legal advice from the Attorney General's office is that obligations, such as increased statutory redundancy, cannot be assigned to employers retrospectively.
It is proposed that, when the Bill is introduced in the Oireachtas, I will announce the date from which the new redundancy terms will be effective, thereby giving advance notice to all employers and facilitating the introduction of the new redundancy terms soon after the Bill has been enacted by the Oireachtas.
