Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 88: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on the redundancy and pension terms and provisions for the 300 employees of a company (details supplied), some of whom have been with the company for more than 22 years; and if she will make a statement on the matter. [13697/09]

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

In general, a redundancy situation arises where an employee's job ceases to exist, and the employee is not replaced for such reasons as rationalisation/reorganisation, insufficient work available, the financial state of the firm, company closures etc. To qualify for payment under the scheme, an employee must be aged 16 or over with 104 weeks' continuous service with an employer. Full-time employees must have been engaged in employment that is fully insurable for all benefits under the Social Welfare Acts and must have been insured in that employment.

Under existing Redundancy legislation, an eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. For this purpose, a week's payment is calculated subject to a maximum weekly ceiling of €600. It is up to the employer concerned in the first instance to determine whether or not a redundancy situation obtains. Any disputes in this regard can be referred to the Employment Appeals Tribunal (EAT) for adjudication between the parties.

Matters relating to pension funds overall come within the remit of the Minister for Social and Family Affairs. In an insolvency situation, the Insolvency Payments Scheme established under the Protection of Employees (Employers' Insolvency) Act 1984 and administered by the Department of Enterprise, Trade and Employment, provides for payment of certain entitlements owed to employees by their employer at the time of liquidation. These entitlements include outstanding pension contributions which the Insolvency Payments Scheme can reimburse in accordance with the provisions of Section 7 of the Protection of Employees (Employers' Insolvency) Act 1984. This Section provides for payment into an occupational pension scheme of outstanding employer and employee contributions which were due to be paid in the 12 months prior to insolvency.