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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 20 May 2020

Wednesday, 20 May 2020

Ceisteanna (1273)

Michael McGrath

Ceist:

1273. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection if assistance is available for employers endeavouring to keep their business afloat but that cannot afford the redundancy costs they are facing; and if she will make a statement on the matter. [6622/20]

Amharc ar fhreagra

Freagraí scríofa

Entitlement to a redundancy payment is defined under the Redundancy Payments Act.  It is the employer’s responsibility to pay statutory redundancy payments to eligible employees.

In situations where an employer is unable to pay these entitlements due to financial difficulties or insolvency an application for payment under the Redundancy Payments Scheme may be submitted to the Department.  The Department will make the statutory redundancy payment to eligible employees on behalf of the employer.

The Redundancy Payments Scheme is funded from the Social Insurance Fund (SIF). When such a redundancy payment is made from the fund, a debt is raised against the employer. The Department will engage with employers to establish their financial situation on a case by case basis and seeks to recover the debt on a mutually agreed basis, including repayments by instalment, where appropriate. This ensures that the scheme takes into account both an employer's ability to pay redundancy payments and that the Social Insurance Fund can be reimbursed in due course.

 The Department of Business, Enterprise and Innovation has agreed a major expansion of business supports that have been developed for companies dealing with the COVID-19 pandemic. Employers can contact a dedicated Business Support Call Centre, available at 01 631 2002 and at infobusinesssupport@dbei.gov.ie.  This provides information on the government supports available to businesses and enterprises affected by COVID-19, which are also listed and available on that Department’s website www.dbei.gov.ie or via gov.ie.   This is in addition to the Temporary Wage Subsidy Scheme which supports employers from the private sector experiencing significant economic disruption.

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