Senator White calls for reduction in processing time for redundancy rebate payments to 6 weeks

Dublin Fianna Fáil Senator, Mary White has called for the reduction in the processing time of employer redundancy rebate payments to a six week period.

Speaking in the Seanad, Senator White said, “At present, some companies have to wait up to 6 months for their redundancy payment rebates.”

“Small businesses are experiencing serious cashflow difficulties and it is important to recognise that most small businesses that are actually implementing redundancies are the very ones most desperate for cashflow.”

Under the Redundancy Payments Acts 1967-2007, employees with more than two years continuous service are entitled to a tax-free lump-sum payment on the termination of their employment due to redundancy of two weeks pay per year of service plus one bonus week.

“Employers can reclaim 60% of this from the Social Insurance Fund, which is directly funded by employers’ PRSI contributions on an ongoing basis,” continued Senator White.

“This delay in giving rebates could directly result in more job losses or indeed it can invariably result in the companies going out of business entirely, not to mention increasing government expenditure because of social welfare costs,” said Senator White.