# What happens if an employer cannot afford to pay a thing?



## François (25 Nov 2009)

Hello,

Does the employer have to pay 100% of the statutory redundancy to the employee upfront, or is it only their 40% stake that the employer pays immediately? Meaning they would  then pay the remaining 60% to the employee once the government processes that employees redundancy claim which might be many months in the future.

Can someone explain what happens if an employer is not in a position were they could pay any percentage of the statutory redundancy to the staff they let go without almost certainly killing off any chance that company had of surviving.

If the company were to pay even just 40% of the statutory redundancy to the dozen or so staff that were let go, it would make the odds of surviving impossible, resulting in even more employees losing their jobs.

Thank you,

François


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## lovelylovely (2 Dec 2009)

Under the Redundancy Payments Scheme all eligible employees are entitled to a statutory redundancy lump sum payment on being made redundant. A redundancy situation arises in general where an employee’s job no longer exists and he/she is not replaced. An employee is entitled to *[FONT=HJANGJ+TimesNewRoman,Bold,Times New Roman][FONT=HJANGJ+TimesNewRoman,Bold,Times New Roman]two weeks pay for every year of service, with a bonus week added on, subject to the prevailing maximum ceiling on gross weekly pay (€600 with respect to redundancies notified/declared on or after 1st January, 2005 - €507.90 before that date). *[/FONT][/FONT]The Department of Enterprise, Trade and Employment, which administers the Scheme, will then pay the employer a 60% rebate. Where the employer is unable or unwilling to pay the lump sum, the Department steps in and pays the amount from the Social Insurance Fund (SIF). 
for more info use this link:
http://www.entemp.ie/publications/employment/2004/guideredscheme.pdf
hope this helps!


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## jack2009 (2 Dec 2009)

If your employer does not pay you what you are due you can make a claim to Department of Enterprise Trade and Employment to get the rest of the money paid by the Department.  Only problem with this is that it involves going to an Employment Appeals Tribunal and this takes months to get a date.

Your employer will not be entitled to get the rebate unless they pay you the full statutory redundancy!


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