Note on the role of the Department in relation to disputes regarding redundancy payments


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  • Responsibility for the processing of claims under the Redundancy and Insolvency Payments Schemes transferred from the Department of Jobs, Enterprise & Innovation to the Department of Social Protection in January 2011.

  • Redundancy Payments: 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. Under the Redundancy Payments Acts an eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. Compensation is based on the worker’s length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week. Employees must have at least two years’ service to be eligible for a redundancy payment.

  • It is the responsibility of the employer, to pay statutory redundancy to all its eligible employees. An employer may decide to make a payment in excess of the statutory requirement to employees – this is entirely a matter for the employer. The Department of Social Protection’s role relates exclusively to the payment of the statutory entitlement.

  • There will be no statutory redundancy employer rebate where the date of dismissal due to redundancy is on or after 1st January 2013.  Where the date of dismissal occurred in 2012 the employer rebate is 15%.  If the date of dismissal was in 2011 or earlier the employer rebate is 60%.
  • Rebates to employers and lump sums paid directly to employees are paid from the Social Insurance Fund.

  • Where an employer can prove to the satisfaction of the Department of Social Protection that it is unable to pay the statutory redundancy to its employees the Department will make lump sum payments directly to the employees and will seek to recover the debt from the employer. To prove inability to pay the employer must submit documentary evidence to confirm that this is the position.

  • Insolvency Payments: The Insolvency Payments scheme operates under the Protection of Employees (Employers’ Insolvency) Acts, 1984 to 2007, and is designed to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer.

  • Dispute Resolution & Employment Rights: The Minister for Jobs, Enterprise and Innovation is responsible for employment rights and employment policies generally, and dispute resolution organisations such as the Labour Relations Commission and the Labour Court operate under his remit. The Department of Social Protection has no role in relation to industrial disputes.
Last modified:08/08/2013
 

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