Following a recent competitive tendering process run by my Department in accordance with EU procurement rules, 17 community and voluntary sector organisations were successful and were awarded contracts to provide the new Intreo Partners Local Area Employment Service (IPLAES). This replaces Local Employment Service and Job Club contracts. All 17 of these contracts are now in place and the new service is being mobilised with the support of my Department.
The new IPLAES service represents a significant increase in state investment in these services, from €23 million per annum to €39 million per annum, exclusive of VAT.
The services focus on those furthest from the labour market and is state-wide for the first time. This represents a substantial expansion of employment services previously available to the long-term unemployed cohort.
Despite this increased investment in services, I understand that some former providers of LES and Job Club services, including in some cases those who successfully bid for the new contracts, have issued redundancy notices to some of their staff. Though regrettable, my Department cannot direct or determine the employment and staffing of third-party contractors and has not undertaken an analysis of any redundancies in this context.
As my Department is not the employer of contracted staff, the responsibility for any redundancy payments rests solely with the employer. Where an employer is unable to pay statutory redundancy, they can make an application to my Department’s Redundancy and Insolvency service.
I trust that this information is of assistance to the Deputy.
