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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.
  • An employer who pays statutory redundancy payments to its employees is then entitled to a rebate from the State.
  • 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.
  • Where the employer has proven that it was unable to pay the statutory redundancy, the Department will seek to recover the amount paid less the amount of the rebate that would have been payable to the employer if the employer had paid the statutory redundancy payment to the employees.
  • Where it appears that the refusal or failure of the employer to pay the statutory redundancy was without reasonable excuse, any rebate to which the employer would otherwise have been entitled may be withheld or reduced. In either such case the amount of the Minister�s claim against the employer may be increased accordingly.
  • 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:03/04/2012

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