EMPLOYMENT GUARANTEE FUND ACT, 1980

AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF A FUND TO BE KNOWN AS THE EMPLOYMENT GUARANTEE FUND, FOR THE PAYMENT OF CONTRIBUTIONS BY EMPLOYERS TOWARDS THE RESOURCES OF THAT FUND AND FOR OTHER CONNECTED MATTERS. [2nd April, 1980]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

1 Definitions.

1.—In this Act—

“contribution year” means a year of assessment within the meaning of the Income Tax Acts;

“employer's employment surcharge” has the meaning assigned to it by section 5 of this Act;

“the Fund” means the Employment Guarantee Fund established by section 2 of this Act;

“the Minister” means the Minister for Finance.

2 Establishment of Employment Guarantee Fund.

2.—There shall be established a Fund which shall be known as the Employment Guarantee Fund and is referred to in this Act as “the Fund”, and which shall be under the control and management of the Minister.

3 Purpose of Fund.

3.—The Minister shall apply the moneys standing to the credit of the Fund for the purpose of defraying expenditure on projects or schemes which in his opinion will result in the creation of additional employment or the maintenance of existing employment.

4 Resources of Fund.

4.—(1) The Fund shall consist of—

• (a) the proceeds of the employer's employment surcharge, and

• (b) an amount not exceeding £10,000,000 (including moneys already paid into the Employment Guarantee Fund grant-in-aid account) out of moneys provided by the Oireachtas.

• (2) Any balance standing to the credit of the Employment Guarantee Fund grant-in-aid account at the passing of this Act shall be paid into the Fund as soon as practicable after such passing.

5 Employer's employment surcharge.

5.—(1) The employment contribution payable by an employer under section 6 (1) (b) (ii) (inserted by the Social Welfare (Amendment) Act, 1978) of the Social Welfare Act, 1952, shall, for the contribution year commencing on the 6th day of April, 1980, be increased by an amount which shall be known and is referred to in this Act as the “employer's employment surcharge”, and the employer's employment surcharge shall be payable in respect of the reckonable earnings by reference to which the employment contribution is determined under the Social Welfare Acts, 1952 to 1980, and shall be calculated at the rate of 0.35 per cent of the amount of such reckonable earnings and shall be deemed to be an employment contribution within the meaning of those Acts.

• (2) Subsection (1) of this section shall not have effect in relation to an employee to whom article 7 or 8 of the Social Welfare (Modifications of Insurance) Regulations, 1979 (S.I. No. 87 of 1979), applies.

• (3) Sections 6 (1) (c) and 6 (1) (d) (inserted by the Social Welfare (Amendment) Act, 1978) of the Social Welfare Act, 1952, shall apply to an employer's employment surcharge in like manner as they apply to contributions by employers under section 6 (1) (b) of that Act.

• (4) Notwithstanding any contract to the contrary, an employer shall not be entitled to deduct from the remuneration of any person employed by him (or otherwise to recover from such a person) the employer's employment surcharge payable in respect of that person.

• (5) An employer's employment surcharge shall be paid into the Social Insurance Fund.

• (6) All sums paid into the Social Insurance Fund under subsection (5) of this section shall, up to the date on which the Fund is wound up as provided for under section 7 of this Act, be paid out of the Social Insurance Fund to the Fund in such manner and at such times as may be determined by the Minister for Social Welfare.

6 Investment of moneys of Fund.

6.—(1) Moneys of the Fund which are not required immediately for application under section 3 of this Act may be invested by the Minister from time to time as he thinks fit in any manner in which funds of the Post Office Savings Bank may be invested.

• (2) Any income arising from an investment under this section shall be paid into the Fund.

• (3) An investment under this section may be realised at any time.

7 Winding up of Fund.

7.—(1) Aggregate payments out of the Fund for the purpose specified in section 3 of this Act shall not exceed £20,000,000.

• (2) The Fund shall be wound up when the aggregate expenditure from the Fund (inclusive of payments out of the Employment Guarantee Fund grant-in-aid account) reaches £20,000,000, and any balance remaining in or to the credit of the Fund shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister may direct.

8 Annual account.

8.—(1) The Minister shall, in respect of each financial year during which the Fund is maintained, prepare an account of payments into and out of the Fund and submit such account to the Comptroller and Auditor General for examination and report.

• (2) The Minister shall lay a copy of each account prepared under this section, together with a copy of the report of the Comptroller and Auditor General on such account, before each House of the Oireachtas.

9 Short title.

9.—This Act may be cited as the Employment Guarantee Fund Act, 1980.