Kitt increases statutory Redundancy Payments for Eligible Employees The ceiling for Insolvency Payments also raised

Mr. Tom Kitt, T.D., Minister for Labour Affairs, today (Wednesday 21st February 2001) announced that he has made two sets of Regulations which raise the ceiling on reckonable earnings used in calculating employees’ entitlements under the Redundancy Payments Acts and the Protection of Employees (Employers’ Insolvency) Acts from £15,600 per annum (£300 per week) to £20,800 per annum (£400 per week) with effect from 1st April 2001. The ceiling was last raised in May 1994.

"In bringing forward these two Regulations", Minister Kitt said, "it is appropriate that the ceilings should be raised so as to ensure that employees’ entitlements under the Acts in question are based on current average earnings and that employees receive adequate monetary compensation in the event of redundancy or the insolvency of their employer". The Minister emphasised that the decision to increase the ceiling under the Redundancy and Insolvency Payments Acts had been agreed following a process of consultation with the Irish Congress of Trade Unions and the Irish Business and Employers’ Confederation.

Under the Regulations made under the Redundancy Payments Acts, eligible employees who are notified of proposed redundancy on or after 1st April 2001, and who are earning in excess of £15,600 per annum (£300 per week) will benefit. Under the Regulations made under the Protection of Employees (Employers’ Insolvency) Acts, the increased ceiling will apply to debts arising under the Acts where the date of termination of employment or the date of insolvency is on or after 1st April 2001. In certain circumstances the employee has the option of nominating whichever date is most favourable to him/her.

Minister Kitt expressed his appreciation to the Social Partners, with whom he had consulted, for their co-operation and he concluded that, "it was good to be able to report a successful outcome on this very important issue of employee rights".