Employer’s responsibility to pay statutory redundancy payments to eligible employees

Debt is raised against the employer where redundancy payment made from Social Insurance Fund

Sligo News File

Tanaiste and Minister for Trade Leo Varadkar has told a Sligo-Leitrim TD that “under the provisions of the Redundancy Payments Act 1967, it is the employer’s responsibility to pay statutory redundancy payments to eligible employees.

“However, in situations where an employer cannot sustain the cost of redundancy payments due to financial difficulties, the Department of Social Protection provides a safety net for both employers and employees and can make the statutory redundancy payment to eligible employees from the Social Insurance Fund on behalf of the employer.

“When such a redundancy payment is made from the Social Insurance Fund, a debt is raised against the employer. The Department of Social Protection is legally obliged to make every effort to recover the debt owed to the Social Insurance Fund,” he added.

The TD raised the issue in a parliamentary question.