Unemployment benefit claimants who receive a redundancy lump sum payment in accordance with the terms of the Redundancy Payment Acts which is in excess of €19,046.07 may be disqualified from receiving payment for up to nine weeks. Certain payments are disregarded in determining the duration of the disqualification, for example, encashment of independent pension entitlements, moneys paid in lieu of notice or accrued holiday entitlements.
Guidelines issued to deciding officers advise that, in considering a UB claim made by a person who has just been made redundant, they should also take account of a range of factors which could include, for example, such as the claimant's age, family difficulties, etc. In addition, in cases where the customer intends to use some of the redundancy payment to clear or reduce debts which have accrued, deciding officers may offset these debts against the amount received before determining an appropriate period of disqualification, for example, arrears of mortgage or rent, arrears of telephone-electricity-gas bills and particularly debts to moneylenders. Regard may similarly be had to costs related to any exceptional needs, for example, the cost of converting the customer's home to facilitate wheelchair access by a family member.
To ensure consistency in the application of the legislation, the following schedule is used as a guide to what might be considered to be an appropriate period of disqualification, having regard to the gross amount of redundancy received:
Amount of Redundancy Payment: Period of Disqualification
€
|
|
19,046.07 — 25,400
|
1 Week
|
25,401 — 31,750
|
2 Weeks
|
31,751 — 38,100
|
3 Weeks
|
38,101 — 44,450
|
4 Weeks
|
44,451 — 50,800
|
5 Weeks
|
50,801 — 57,150
|
6 Weeks
|
57,151 — 63,500
|
7 Weeks
|
63,501 — 69,850
|
8 Weeks
|
69,851 and over
|
9 Weeks
|
This measure was introduced in 1992 and was designed to counter situations where the social insurance fund was, in effect, being used as a top-up to substantial redundancy packages which also, in some cases, offered fixed period seasonal work. It is important to achieve a balance between the need to ensure that the integrity of the social insurance fund is protected with the need to ensure that the legitimate expectations of insured workers are met. In that context the arrangements in respect of people who receive redundancy payments, as I have outlined them, are not unreasonable.