Dáil Éireann Debate, Tuesday - 28 June 2005
415 Mr. O’Connor asked the Minister for Enterprise, Trade and Employment the way in which Ireland’s statutory redundancy entitlements compare with those of European Union partners; the cost to the Exchequer of emulating the highest level of redundancy entitlements in the European Union; and if he will make a statement on the matter. [22192/05]
Amharc ar fhreagraRedundancy payments often reflect the labour market culture of a country. Legislation is light in some member states to allow for a more flexible and competitive labour market. Other governments take a more active role to protect employees. In some EU countries, redundancy amounts are negotiated, while in this country and the UK redundancy is based on a legal right to a statutory redundancy lump sum payment on being made redundant. Given that redundancy payments are not dealt with in a similar fashion in other member states, it is not possible to provide definitive comparisons on redundancy payments.
However, a set of comparisons has been made available by Mercer Human Resources Consultants. This chart shows variations in redundancy pay in the 15 EU States at 27 May 2003 in respect of white collar workers aged 40 made redundant after ten years service on a salary of €30,000. Ireland shows a figure of €10,666, which is 21 weeks pay at the then ceiling of €507.90 per week. Since 1 January 2005, the ceiling on wages has increased to €600 per week and, therefore, 21 weeks pay at €600 would amount to €12,600.
On perusal of the relevant chart, Italy and Spain appear to show the highest rate of redundancy, while the UK is at the lower end of the scale. In the case of several countries no minimum severance pay is shown. As the terms of the Irish statutory redundancy scheme have been improved considerably in recent years, there is no intention at this stage to seek to emulate the minimum severance pay in Italy and Spain.
|
Country |
Min. no. of weeks notice period after 10 years of service |
Pay for notice period |
Min. no. of weeks’ severance pay after 10 years of service |
Min. severance pay |
Total |
|
€ |
€ |
€ |
|||
|
Austria |
13 |
7,500 |
26 |
15,000 |
22,500 |
|
Belgium |
39 |
22,500 |
0 |
0 |
22,500 |
|
Denmark |
26 |
15,000 |
0 |
0 |
15,000 |
|
Finland |
17 |
10,000 |
0 |
0 |
10,000 |
|
France |
9 |
5,000 |
4 |
2,500 |
7,500 |
|
Germany |
17 |
10,000 |
0 |
0 |
10,000 |
|
Greece |
26 |
15,000 |
0 |
0 |
15,000 |
|
Ireland |
6 |
3,462 |
21 |
10,666 |
14,128 |
|
Italy |
9 |
5,192 |
40 |
22,222 |
27,414 |
|
Luxembourg |
26 |
15,000 |
9 |
5,000 |
20,000 |
|
Netherlands |
13 |
7,500 |
0 |
0 |
7,500 |
|
Portugal |
22 |
12,502 |
11 |
6,250 |
18,752 |
|
Spain |
2 |
1,235 |
59 |
36,961 |
38,196 |
|
Sweden |
26 |
15,000 |
0 |
0 |
15,000 |
|
UK |
9 |
5,192 |
4 |
2,500 |
7,692 |
