Cyprus Mail

Redundancy process for 2012 completed

By Peter Stevenson

THE process for redundancy claims for 2012 has been completed for cases where the necessary paperwork has been submitted to the department of social insurance, the Labour Ministry said yesterday.

Back in December, Labour Minister Zeta Emilianidou had committed to making sure that all those who had been made redundant in 2012 would have their applications processed by the end of 2013.

An official at the department of social insurance told the Cyprus Mail yesterday that efforts were being made to process all applications as quickly as possible and that currently applications filed up until May of last year were being examined.

“We have processed all applications from 2012 that we have received the necessary paperwork for with a few pending cases due to employers late in sending us details we had asked for,” she said.

The official added that delays were not due to any financial shortfalls in the central Social Insurance Fund (SIF).

To receive payment, people made redundant need to file an application at a local social insurance office, accompanied by the employer’s letter explaining the reasons for dismissal, within three months from termination of employment.

In order to qualify for the payment, a previous employ of at least two years is necessary, having work for at least 18 hours a week. The department would also need to confirm that business had decreased for the company which had made the redundancy and also confirm that no one else had been hired for the same position.

Numbers were not readily available for the number of redundancy applications currently being examined, the official said.

The labour ministry said in December that the number of pending redundancy payments had been reduced to 15,301 in October, from 16,308 the previous month.

In October 2012, outstanding redundancy applications totalled 10,721.

Last year, 11,724 people filed for redundancy payment. About 1,319 applications were rejected, while under half or 6,161 applications were approved.

In 2013, about €52.8m was paid out from the Redundancy Fund, which is funded through employers’ contributions and falls under the auspices of the labour ministry’s department of social insurance.

In August, government spokesman Christos Stylianides said the cabinet had decided that all pending applications should have been processed by the end of the year. He said the state would try hard to compensate those people.

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