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Redundancy Payments

Dáil Éireann Debate, Tuesday - 19 June 2012

Tuesday, 19 June 2012

Ceisteanna (268)

Ann Phelan

Ceist:

354 Deputy Ann Phelan asked the Minister for Social Protection the position regarding the rights of workers made redundant by a nursing home (details supplied) in County Kilkenny; and if she will make a statement on the matter. [29267/12]

Amharc ar fhreagra

Freagraí scríofa

The primary purpose of the Redundancy Payments scheme is to compensate workers, under the Redundancy Payments Acts, 1967 to 2011, for the loss of their jobs by reason of redundancy. Compensation is based on the worker's length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week. It is the responsibility of the employer to pay statutory redundancy to all their eligible employees. An employer who pays statutory redundancy payments to their employees is then entitled to a rebate from the State. Rebates to employers and lump sums paid directly to employees are paid from the Social Insurance Fund (SIF).

The Insolvency Payments scheme operates under the Protection of Employees (Employers' Insolvency) Act, 1984 and is designed to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. Such entitlements include wages, holiday pay, sick pay, and payment in lieu of minimum notice due under the Minimum Notice and Terms of Employment Acts 1973 to 2001. The Minimum Notice and Terms of Employment Acts 1973 to 2001 provide that, if an employee has been in continuous service with the same employer for at least thirteen weeks, the employee is entitled to a minimum period of notice if the employer terminates the contract of employment. The period of notice varies according to the length of service. The Acts, which are under the aegis of the Minister for Jobs, Enterprise and Innovation, do not prevent an employee from accepting payment in lieu of notice.

Under Redundancy Payments legislation, an eligible employee must receive at least two weeks' notice. This two-week notice period can overlap with the minimum notice period provided for under the Minimum Notice legislation. The Minimum Notice legislation provides a means of redress for an employee who believes he/she has not received his/her entitlements, whereby the employee can make a claim for compensation to the Employment Appeals Tribunal.

The State provides various mechanisms, including the Employment Appeals Tribunal and the Labour Court, through which alleged breaches of employment rights may be pursued by an employee. These bodies are independent in the performance of their duties. While these bodies are available to deal with any complaint received, it is strictly a matter for an employee as to whether any such complaint should be pursued. To date no applications under the redundancy payments scheme or the insolvency payments scheme have been received in respect of the former employees of the nursing home concerned. If there are outstanding payments of PAYE and/or PRSI due to the State in respect of the nursing home concerned the Office of the Revenue Commissioners will pursue those monies through the appropriate channels.

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