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Redundancy Payments

Dáil Éireann Debate, Wednesday - 14 November 2012

Wednesday, 14 November 2012

Ceisteanna (136)

Brendan Griffin

Ceist:

136. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the supports available to a person (details supplied) in County Kerry [50300/12]

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Freagraí scríofa

Under the Redundancy Payment Scheme eligible employees (with at least two years continuous service in fully insurable employment) are entitled to a minimum statutory lump sum payment on being made redundant. A redundancy situation arises in general where an employee’s job no longer exists and he/she is not replaced including where the company ceases to operate because of financial or other considerations. An employee is entitled to two weeks’ pay for every year of service, with a bonus week added on, subject to the prevailing maximum ceiling on gross weekly pay which is currently €600. This lump sum payment is tax free. In addition, employees are entitled to notice as per the Minimum Notice Act prior to termination of employment.

Where an employer fails to comply with his or her redundancy payment/minimum notice obligations or where there is a dispute regarding entitlements, claims may be referred by the employee to the Employment Appeals Tribunal (EAT).

Redundancy Claims to the EAT must be made within 52 weeks from:

(i) the date of dismissal or

(ii) the date of ending of contract of employment.

Where there are also wages and payments in lieu of annual leave untaken or any public holiday benefit outstanding a case can be taken to the Rights Commissioners Service under the Payment of Wages Act. Cases must be referred to the Rights Commissioners Service within six months of the non-payment.

Where the employer is legally insolvent it is possible to pursue the entitlement to Redundancy Lump Sum through the Social Insurance Fund.

The form and further details on taking a case are available on the Workplace Relations Customer Services website www.workplacerelations.ie or through their Information Service at 1890 80 80 90.

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