Dáil Éireann Debate, Wednesday - 30 September 2020
162. Deputy John McGuinness asked the Minister for Social Protection if there is financial assistance for businesses that due to Covid-19 have had to close permanently and now face high costs of minimum notice for employees who in ordinary circumstances would have worked out their notice but Covid-19 restrictions prevented this from happening; if the issue is under consideration; and if she will make a statement on the matter. [27474/20]
Amharc ar fhreagraFirstly, I wish to acknowledge the difficult time that many businesses are currently facing. Many sectors and industries have been badly affected during the emergency period and my sincere thoughts are with all employers and employees in these situations at this time.
In situations where an employer has to make an employee redundant, the employer is obliged to comply with the existing provisions outlined in the Redundancy Payments Act 1967. Under section 17 of that Act an employer who proposes to dismiss an employee by reason of redundancy must give that employee notice of the redundancy at least 2 weeks before the date of dismissal. Employees may also be entitled to longer periods of notice under Section 4 of the Minimum Notice and Terms of Employment Act 1973, depending on their length of service.
Furthermore Section 5 and Schedule 2 of the 1973 Act provide that if an employee is made redundant and they are not required to work out the notice or there is no work available, they are entitled to payment in lieu of notice.
If the employer is unable to make the redundancy payment, an application may be made to the Department for payment under the Redundancy Payments Scheme. In such cases a debt is raised against the employer and an agreed repayment plan can be put in place. The purpose of the Insolvency Payments Scheme is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. Payment in lieu of minimum notice due under the Act of 1973 is one of the entitlements covered under this scheme. The scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act 1984 also covers entitlements including wages, holiday pay, sick pay, certain pension contributions and various other statutory awards made by the Workplace Relations Commission, the Labour Court and the Circuit Court.
Further information on the Insolvency Payments Scheme can be found at gov.ie.
