Unemployment benefit

Press, 19 August 1982, Page 20

Unemployment benefit

Sir,—Through these columns I would like to ask the Minister of Social Welfare how much has been saved, dr is intended to be saved, by restricting the eligibility of a person to the unemployment benefit? I talk of moving eligibility back day for day for each day’s holiday pay received by a person applying for the unemployment benefit , from the previous employer. Are redundancy, payments treated the same?— Yours, etc., M. J. KEENAHAN. July 26, 1982. [The Minister of Social Welfare, Mr Venn Young, replies: “Because holiday pay is directly related to wages and represents a continuation of a person’s normal employment income, unemployment benefit is not payable in respect of a period covered by holiday pay. It has always been policy to take holiday pay into account in this way and it is not possible to determine how much expenditure would increase if the policy were not applied. On the other hand, payments in respect of redundacy have a different purpose. The redundancy payment is compensation for loss of tangible rights,, such; as accumulated seniority, future promotion, security of employment, vacation, sick leave, pension and other rights under welfare plans. On this basis the Commission considers redundancy payments are not income, but rather capital payments which are exempted under the income provisions of the Social Security Act. As such they are disregarded iri’ establishing the date of commencement of an unemployment benefit. However, as you will be aware I recently announced an increase in the stand-down period for unemployment benefit applicants without dependants from seven days to 'l4 days.. In addition, applicants, including seasonal workers, with high pre-benefit earnings will- have a waiting period of up to six weeks (longer if they receive holiday pay)-”]