Can an employer do this? Any advice welcome.

Spanish Eyes

For someone I know. I'm retired!!

Anyway she is working in a small company herself and three others. Has been there for nearly 30 years.

The Company is on the brink now. Being run into the ground it would seem. The staff are getting paid and so on, but the Revenue is after them big time now for unpaid VAT. The Sheriff is on the way too.

There is no money coming in and bills galore remain unpaid (friend is bookkeeper and general receptionist so knows the score there).

Question she has is.. (I don't know), can the company just fold and give them nothing after all these years, as she knows this is going to happen soon.

The Company will not be in a position to pay redundancy or severance. The premises is owned by the company and is worth a six figure sum, but who knows.

Anyway, if there is anything left from the sale of the premises (inevitable it seems for creditors to be paid), if there is anything left over are the employees entitled to anything?

Is there a State Scheme to pay statutory redundancy?

Thanks for any help out there.

dreamers75

Short answer Yes they can.

Your buddy will have to do this (click the link for the forms required) it wont be a short process. :

My employer says he cannot afford to pay my redundancy, what should I do?

If your employer has not paid your redundancy lump sum, you should apply to your employer for it using form RP77 (pdf). If your employer still refuses to pay it, you can apply to the Department of Social Protection for direct payment from the Social Insurance Fund. It must be done online using form RP50 as follows:

If your employer is unable to pay your redundancy lump sum, he should sign the RP50 and submit a letter from an accountant or solicitor stating he is unable to pay and for 100% of the lump sum (85% for a dismissal in 2012) owing to the Social Insurance Fund. Documentary evidence such as audited accounts should also be included.
If your employer refuses to pay your redundancy lump sum or if there is a dispute about redundancy you can bring a claim to the Workplace Relations Commission. You must use the online complaint form available on workplacerelations.ie. This must be done within one year of your dismissal. Then you apply for your lump sum by sending a completed form RP50 together with a favourable decision from the adjudicator of the Workplace Relations Commission.

http://www.citizensinformation.ie/en/employment/unemployment_and_redundancy/redundancy/frequently_asked_questions_about_redundancy.html

ytpe2r5bxkn0c1

This may explain much of what you ask.

http://www.boards.ie/ttfthread/2057639510

NapoleonInRags

In the event that an employer can't or won't pay redundancy the employees are entitled to claim statutory entitlement through the social insurance fund.

dreamers75

Arabella Beautiful Swatch wrote: »

This may explain much of what you ask.

http://www.boards.ie/ttfthread/2057639510

Spanish Eyes

Thanks all.

(Srameen wtf with the Vodafone call from Mammy/Daddy lol)

Anyway, seems like statutory redundancy may be paid from the Social Fund alright, but the employer remains a preferential creditor for it to be paid back to DSP. What if there isn't enough left after the sale of the premises? And say Revenue (also a preferential creditor) and DSP are sluggin it out?

Would be great if she even got statutory after all those years, but it's not clear to me if she will or not.

Anyway this is an extract from DSP website re stat redundancy etc. (Is it out of date or what?, maybe nothing has changed since 2013!

1. If I cannot afford to pay my employees their full Statutory Redundancy should I pay what I can afford?

No, if an employer cannot afford to pay the full Statutory lumpsum to their employee(s) the Department will make payment out of the Social Insurance Fund, provided that the Employer provides evidence that they are not in a position to pay. Recently Audited accounts or a Statement of Affairs signed by accountant/auditor will be accepted as evidence. The Department will then become a preferential creditor of the Employer and will owe 40% (If Employment End Date prior to Jan 2012), 85% (If Employment End Date is between 1st January 2012 and 31st December 2012) or 100% (If Employment End Date is on or after 1st January 2013) of lump sum amount to the Social Insurance Fund

http://www.welfare.ie/en/Pages/Redundancy-Payments-Frequently-Asked-Questions.aspx#faq1

dreamers75

This will not be a short process but assuming your mate is on €10 an hour its 24k or thereabouts.

She will get the statutory but it will take a while.

Going on what you say about the company I doubt the owner is going to fight anything as that costs money.