Following the recent High Court Case new proposals in relation to JLC/REA's have been made by the government:
24-Nov-10 at 18.17 | Resolve HR Admin
Following today's decision to reduce the Minimum Wage rate to €7.65. The Government has signalled that the ERO and REA rates should be reviewed. In particular the Catering,...

News

Jul 20, 2009

Six Month delay in payment of Employers Redundancy Pay Rebates.


Unsurprisingly the amount paid out by the state in statutory redundancy payments for the first 6 months of 2009 shows a dramatic increase on the 2008 figures. In the first six months of the year €128.2 million has been paid out with 43,000 people claiming statutory redundancy payments. This compares to a 2008 total of €183 million, with the number of claims lodged by June 09 exceeding the total number of claims for 2008, the final figure is likely to be well in excess of €200 million.

 

Of even greater concern for employers is the time now taken to process employer rebates. When making staff redundant employers are entitled to claim back 60% of the statutory redundancy payment from the state. For example:

 

Employee Length of Service  = 5 Years

Employee Weekly Pay  = €500

Statutory Redundancy Entitlement  = 2 weeks pay (to a maximum of €600) for each full year worked plus 1 bonus week.

Therefore the employee's statutory redundancy pay = 11 weeks x €500 = €5,500

State rebate = 60% of €5,500 = €3,300

 

It is currently taking between six and seven months for the Department of Enterprise Trade and Employment to process these payments. Given that any business which has is forced to lay of staff is already in some difficulty, this delay is adding greatly to the cash flow pressures these businesses are experiencing.