Minister Martin signs order to amend Redundancy Payments legislation.

The Minister for Enterprise, Trade and Employment, Mr Micheál Martin today (Friday February 25^th 2005) announced that he has signed a Commencement Order which will bring Sections 7, 11 and 12 of the Redundancy Payments Act, 2003 into operation on 10^th April, 2005.

Section 7 provides for a comprehensive new redundancy form (known as Form RP50) which combines the existing forms RP1 (Notice of Redundancy), RP2 (Certificate of Redundancy), RP3 (Rebate claim) and RP14 (Employee’s Application for a Lump Sum from the Social Insurance Fund). This new form will provide the basis for any rebate/lump sum claim from 10^th April, 2005.

An employee who receives notice of redundancy onor after 10^th April, 2005will receive his/her notice of redundancy on Form RP50. This form will also be used to record the receipt by the employee of the statutory redundancy amount from the employer and will be used by the employer to claim a rebate from the Social Insurance Fund. The old Forms (RP1, RP2, RP3 and RP14) should not be used in respect of redundancies where the date of notice occurs on or after 10^th April, 2005.

Section 11 confirms the rates of redundancy payment in place since 25^th May, 2003 by amending Schedule 3 of the Redundancy Payments Act, 1967, with the added proviso that all “excess” days will be credited as a proportion of a year.

Section 12 provides that continuity of service is preserved even where there are certain “breaks” in employment e.g. sickness or lay-off etc. It also provides that such “breaks” in service are reckonable in the calculation of a lump sum, except “breaks”occurring in the3 year periodprior to thedate of termination of employment,which are non-reckonablein all lay-off cases and non-reckonableafter 52 weeks of absencewithin this 3year perioddue to occupational accident or diseaseas well as being non-reckonableafter 26 weeks of absence (again, within this 3 year period) due to any other illness or injury.

These new provisions are applicable to all redundancies whereNotice of Redundancy is formally conveyed to the employee on or after 10^th April, 2005by means of the receipt of a Notice of Redundancy on the prescribed format i.e. the new comprehensive redundancy form RP50.

To make a redundancy calculation under the new Scheme employers and employees can double click on the Redundancy Calculator icon on the Home Page of the Department’s Website at www.djei.ie From 30^th May 2005 it will be possible to complete Form RP50 on-line using the Department’s website www.djei.ie It is expected that this facility will be of major benefit to employers, employees, liquidators etc. Details of this new facility will be made available in May 2005.

Employees and employers can obtain general information on the new Scheme by contacting the Employment Rights Information Section of the Department at telephone (01) 6313131.

ENDS

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