Taxpayer foots €79m redundancy bill
THE taxpayer has shouldered a €79m bill to cover basic redundancy lump sums for workers whose employers failed to pay, writes Anne-Marie Walsh.
Employers' debt was part of a total of €552m paid out of the State's social insurance fund in the 24 months to the end of last year, the Comptroller and Auditor General (C&AG) report reveals.
The State paid 100pc of workers' basic entitlements when they lost their jobs and their employers "defaulted" on their payments, and the debts have still not been recovered.
The Department of Enterprise, Trade and Innovation was unable to say last night how many employers had proven they could not afford the payment. If employers pay the basic entitlement, they can then reclaim 60pc from the State.
Debt owed to the department as a result of unpaid redundancy and insolvency payments rose by 62pc, or €55m, between 2007 and 2009.