Thousands of people who were made redundant by their employers are still waiting for their redundancy payments, while the labour ministry plays catch-up despite a Cabinet promise to process all applications by the end of the year.
The labour ministry said on Wednesday that the number of pending redundancy payments was reduced to 15,301 in October, from 16,308 in September. A few thousands lost their jobs last year and are still waiting for their redundancy payment.
In October last year, pending redundancy applications had come to 10,721.
This year alone, 11,724 people filed an application for redundancy payment. About 1,319 applications were rejected, while under half or 6,161 applications were approved.
So far this year about €52.8 million has been paid in redundancy payments from the Redundancy Fund, which is funded through employers’ contributions and falls under the auspices of the labour ministry’s department of social insurance.
To receive redundancy payment, people need to file an application form from a local social insurance office, along with an employer’s letter explaining the reasons for dismissal, within three months from termination of employment.
In August, government spokesman Christos Stylianides said cabinet had decided to process all pending applications by the end of the year. He said the state would try hard to compensate those people.
However, money is tight both for employers and state and it appears cabinet ministers made a promise they could not keep.