Vol. 476 No. 5
220 Mr. Callely asked the Minister for Social Welfare the position regarding the criteria to qualify for the back to work allowance; if the position that is filled by the applicant has to be a newly created position; and if he will make a statement on the matter. [7383/97]
The primary objective of the back-to-work allowance is to allow people who have been long-term unemployed to test employment or self-employment options and regain a foothold in the labour market while retaining some financial security for a three year period.
Employers are encouraged to participate in the scheme by offering jobs to persons who have been long-term unemployed. There are three conditions attached to use of the scheme by employers as follows: 1. the jobs must be new or additional and must not displace existing jobs; 2. the jobs must have the potential to become long-term — temporary and short-term jobs are not eligible — and 3. the numbers of hours worked in a week must exceed 20.
Employers who take on persons in receipt of the allowance are required to certify that the job is a new or additional one and will result in a net increase in the level of employment. The primary purpose of this requirement is to ensure that displacement levels in the scheme remain at an acceptable level.
Employers who recruit persons entitled to support under the scheme also qualify automatically for PRSI exemption. Under this scheme an employer is exempt from paying his share of the PRSI contribution for two full years.
