Minister Killeen launches new on-line Redundancy Payments System
“Customers to reap benefits of revolutionary streamlined Redundancy Payments System” - Killeen
Minister for Labour Affairs Tony Killeen today launched a new on-line redundancy payments system for the Department of Enterprise Trade and Employment.
Minister Killeen outlined the main advantages of the new electronic system which include:
- Instantaneous online access for the client;
- New improved and simplified on line Redundancy Payment Calculator;
- Irish and English facilities;
- Consolidation of existing forms into one single online form
- Quicker turnover of applications.
Speaking at the launch Minister Killeen said “Redundancy is a difficult time for both workers and employers and we therefore must ensure that the process of accessing redundancy entitlements is more efficient and user friendly. Under this new system everyone is a winner because the processing of applications by my Department is going to be simpler, more efficient and entail far fewer queries and exchanges of correspondence.”
“The Government allocated ¤1 million for this project and it has been completed and delivered on time and on budget. It is in the interests of employers, liquidators and employees to use the new internet facility for making redundancy applications on the Department’s website at www.djei.ie.”, Minister Killeen added.
The payment of Statutory Redundancy Lump Sums to eligible redundant employees is a matter for the employer in the first instance. Where an employer is unable to make the statutory payments, payment is made directly to the eligible employees by the Redundancy Payments Section of the Department of Enterprise Trade and Employment.
Any employer who pays the correct Statutory Redundancy Lump Sum to an eligible employee is entitled to reclaim 60% of that lump sum from the Department by completing the requisite RP50 form and submitting online using the new system.
The new Redundancy Payments System forms part of the eGovernment agenda under the Agreed Programme for Government 2002-2007, and is aimed at ensuring that the public is able to access most key Government services electronically. The project was designed by Version1 Software, a leading IT Services company delivering value based business solutions to government and industry using proven leading edge technologies.
Notes for Editors
In February 2003, Government approved the provision of a sum of ¤1 million from the Social Insurance Fund towards modernising and e-enabling Redundancy Payments. It was envisaged that two types of benefit would arise from the proposed new eGovernment Redundancy System:
- Customer service benefits, due to a reduction in the number of forms, online submission and validation of redundancy claims, simpler calculation of entitlement, minimal correspondence; and
- Administrative efficiency gains, from simpler data entry, online submission of forms and fewer queries.
The new IT system, was designed by Version 1 Software, a leading IT Services company delivering value based business solutions to government and industry, using proven leading edge technologies. Headquartered in Dublin, its customer base is spread across the Republic of Ireland, Northern Ireland and England markets. Version 1 focuses on a number of key market sectors, namely Government, Healthcare, Utilities & Energy and Financial Services.
With this new system, it will be possible from 31 May 2005 for employers to submit their claims to the Department for a statutory redundancy rebate payment via the internet at www.djei.ie. It will also be possible in an insolvency situation for liquidators/receivers to make an electronic submission for redundant employees who are eligible for statutory redundancy, and equally, enable eligible individual employees to make direct applications in situations where their employees have failed to pay them their correct statutory redundancy entitlements. The new system will also have the benefit of combining all four of the existing statutory redundancy application forms into a comprehensive new Form RP50. Furthermore, it has built-in mandatory fields to prevent omissions of essential data.
The new IT System is accompanied by a redundancy calculator facility on the Department’s website at www.djei.ie which will further encourage use by customers. The website also has an up-to-date “Guide to the Redundancy Payments Scheme” which has been written in an informative but user-friendly style.
Redundancy Payments Scheme
The purpose of the Redundancy Payments Scheme, which is administered by the Redundancy Payments Section of the Department of Enterprise, Trade and Employment, is to compensate workers under the Redundancy Payments Acts, 1967 to 2003, for the loss of their jobs by reason of redundancy. Compensation is based on the workers’ length of reckonable service and reckonable weekly remuneration, subject to a current ceiling of ¤600 per week.
Statutory redundancy lump sums, which are tax-free, are generally paid by the employer who is then entitled to a rebate from the State of 60% of the relevant amount. In case of employer default, the statutory redundancy lump sum entitlement is paid in full to the employee(s), from the Social Insurance Fund, by the Department of Enterprise, Trade and Employment. In such cases, the Department seeks to recover the monies so paid (which have priority status in a winding-up) from the employer.
The Government decision to accept the findings of the Redundancy Review Group which was set up in 2002 and consisted of representatives of employers, workers and government departments has resulted in an overhaul of the Redundancy Payments scheme with three major improvements.
The first improvement took place in May 2003, with an increase in statutory redundancy rates pursuant to the “Sustaining Progress” Agreement, amounting to two weeks pay for every year of service, together with a bonus week. This contrasted with the old rates of a half week’s pay for every year of service under 41 and a week’s pay for every year of service from 41 years of age (together with a bonus week).
The second improvement, again following “Sustaining Progress” negotiations, increased the maximum figure for gross weekly earnings to be taken into account in calculating statutory redundancy entitlements from ¤507.90 to ¤600 with effect from 1 January 2005.
For the full year of 2004, there were a total of 23,372 notified redundancies, representing a 16% reduction compared to the figure of 27,702 for 2003. In 2004, the Department spent a total of ¤137,895,000 on employer redundancy rebates and ¤14,330,000 on direct payments to employees. For the first three months of 2005, the redundancy expenditure figures were ¤22,079,236.47 for employer rebates and ¤1,489,443.41 for direct payments to employees.
ENDS
- LA 121
Last modified: 02/06/2005
| © 2011 Department of Jobs, Enterprise and Innovation | Privacy Statement |
,
