The employer is responsible for paying redundancy benefit. Where an employee has been laid off by his employer for a period of six or more consecutive weeks, he may elect to make a claim in writing to his employer for a redundancy benefit.
Where an employee makes a claim for Redundancy benefit, the employer shall, in accordance with the Protection of Employment Act:
- Pay the Redundancy benefit as claimed
- Serve on the employee a counter-notice offering to give the employee employment within four weeks
Where the employer has refused or failed to pay Redundancy benefit to the employee subsequent to his claim for benefit from the employer, the employee may opt to make a claim for a Redundancy benefit to the Director of the DSS.
Upon being satisfied that the claim made by the employee is payable, the Director may advance the Redundancy benefit amount to the employee. Any such payment made by the Director is recoverable as a contract debt owed to the Board on behalf of the Fund, and the Director shall immediately take steps to recover the full amount from the employer.
It must be noted that where an employer pays Redundancy benefit, he then becomes entitled to a Rebate of 10%. However, if he fails to pay, and the benefit is advanced by the DSS, he is then liable to reimburse the entire amount paid. Employers who pay Redundancy benefit to their employees therefore realize a 10% savings.