The Department of Enterprise is engaging with Aer Lingus about the company’s eligibility for a redundancy rebate for a “leave and return” scheme it provided staff almost two years ago.
Under the scheme, some 1,000 Aer Lingus staff were given generous redundancy packages and let go, but up to 700 workers were immediately re-employed by the company on reduced terms and conditions.
The deal between Aer Lingus and Siptu, which represented the workers concerned, included a voluntary severance package of nine weeks a year of service up to a maximum of 156 weeks.
The scheme would have allowed Aer Lingus to claim a rebate from the State, potentially worth millions of euro, on some of the cost of the statutory redundancy payments made to staff and allowed the 300 workers who left the company to receive favourable tax treatment on the lump sum.
Siptu said it was assured by Aer Lingus that the deal had been endorsed by independent legal and tax advisors and it said the agreement was negotiated with the assistance of the Labour Relations Commission and registered at the Labour Court.
It is understood the Revenue Commissioners is looking into the payments and that it may order that some of the money be refunded. A spokesman said the Revenue Commissioners did not comment on individual cases.
Siptu assistant industrial organiser Jason Palmer said he understood Aer Lingus was engaged with the Revenue Commissioners but that he felt it was a bona fide redundancy agreement that would stand up to scrutiny.
He said that if it did transpire the information provided by Aer Lingus was flawed "the company will have to pay for any losses incurred by our members".
"We will not tolerate our members receiving anything less than what was agreed with Aer Lingus in 2008," he said.
