Written Answers - Redundancy Payments Tuesday, 14 December 2010

Dáil Éireann Debate Vol. 725 No. 1 Unrevised Page of 262

  348.  Deputy Jack Wall      asked the Minister for Enterprise, Trade and Innovation      the reason a person (details supplied) in County Dublin has not been paid their redundancy payments despite the fact that they were made redundant over 14 months ago; the channels available to the employee to ensure that they receive their rightful payments; and if he will make a statement on the matter. [47292/10]

Minister of State at the Department of Enterprise, Trade and Innovation (Deputy Dara Calleary):    My Department administers the Social Insurance Fund (SIF) in relation to redundancy matters on behalf of the Department of Social Protection. There are two types of payment made from the SIF — rebates to those employers who have paid statutory redundancy to eligible employees, and statutory lump sums to employees whose employers are insolvent and/or in receivership/liquidation.

I can confirm that my Department received two statutory redundancy lump sum claims in respect of the individual concerned on 28 October and 27 November 2009, one from a Liquidator and one from a Receiver. An application for minimum notice pay was also received in respect of the same individual.

I understand that in this case, the Liquidator mistakenly submitted the first application for payment of statutory redundancy for the person mentioned. The person had not left employ[267]ment but was retained in employment in a transfer of undertaking situation. The Receiver is running the business as a going concern. However, the Receiver subsequently made the person redundant and submitted the second redundancy claim in November 2009.

Where there is a change in ownership of a business but the employee, by arrangement, continues to work for the new owner with no break in employment, the employee is not entitled to redundancy payment at the time of change of ownership. Continuity of employment is preserved with the new employer who can of course subsequently make the employee redundant at a future date.

In relation to the redundancy claim submitted by the Receiver, to date, no Deed of Appointment has been received by my Department from the Receiver as required, nor has any Statement of Affairs been provided as is required to facilitate both payment of statutory redundancy and minimum notice entitlements under insolvency legislation.

The Receiver has been asked to submit a copy of the Deed of Appointment and to provide a Statement of Affairs in relation to the business, which is being run as a going concern. Payment cannot be effected by my Department until these documents have been submitted and are in order.

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Last Updated: 12/08/2011 15:56:27

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