Joan Burton (Dublin West, Labour) | Oireachtas source

JobPath is specifically designed to help those jobseekers who are most distant from the labour market to gain sustained employment. JobPath companies will engage approximately 1,000 staff to provide services for up to 400,000 jobseekers over a four-year period. Following the completion of a public procurement process, two companies were selected to provide JobPath - Turas Nua Limited and Seetec Limited. The procurement process and the selection of the successful companies had specific regard to international experience of contracted out employment services. An Irish model was designed from this. The companies will deliver services directly and will engage a range of local subcontractors, including local training companies and local employment service providers.

Significant safeguards have been built into JobPath, including a service guarantee to ensure all participants receive a baseline level of service. Penalties will be imposed on the companies if service performance or quality does not meet the set standard. Most significantly, JobPath uses a payment-by-results model and all initial costs are borne by the companies. JobPath is so structured that the companies cannot recover their costs or make any profits unless and until they get people into sustainable jobs. These jobs must be for at least 30 hours per week. The rates paid to contractors are also linked to the performance of the wider economy. Automatic discounts or reductions in payments to contractors apply if employment growth exceeds our medium-term forecasts. In addition, both companies will be subject to regular on-site inspections and audits to ensure JobPath is delivered in accordance with contractual obligations.

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