RTÉ News has learned that the Department of Enterprise, Trade and Employment is seeking legal advice to avoid paying out over €7 million to Irish Ferries in a redundancy rebate.
The ferry company plans to replace almost 550 staff with cheaper agency staff from overseas- and would normally be entitled to reclaim 60% of the statutory redundancy payment to workers from the State.
However, it is understood the department has consulted the Attorney General's office for advice on whether the rebate should be paid when workers are being replaced.
Earlier this year, Irish Ferries replaced Irish staff on its French route with cheaper agency staff recruited mainly from eastern Europe in a bid to boost competitiveness.
It is now planning to make another 543 staff on its UK crossings redundant. Staff who choose to stay on will have to accept lower pay and conditions.
If all 543 staff left - based on 18 years' average service - the Irish Ferries redundancy package could cost over €50 million.
Of that, the company would be entitled to reclaim over €7 million from the State as a rebate on redundancy payments.
However, RTÉ has learned that the Department of Enterprise, Trade and Employment has consulted the Attorney General's office for advice on whether it should pay out the money.
While the company is not commenting on the current controversy, it is understood that they expect to receive the rebate, as it was paid to them when they made staff on the Normandy redundant in what they believe are similar circumstances earlier this year.
