Written answers

Tuesday, 7 March 2017

Department of Social Protection

Labour Activation Projects

Photo of James BrowneJames Browne (Wexford, Fianna Fail)
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295. To ask the Minister for Social Protection the penalty clauses that apply to his Department under the agreement with Turas Nua and Seetec; the circumstances in which they arise; and if he will make a statement on the matter. [11257/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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As the Deputy will be aware, JobPath is a service that supports people who are long-term unemployed (over 12 months) and those most at risk of becoming long-term unemployed to secure and sustain paid employment. Contractors are paid via a combination of an initial registration fee and thereafter only on the basis of job sustainment fees: which are only paid in respect of each period of 13 weeks the former jobseeker is in sustained employment, up to a maximum of 52 weeks (i.e. a maximum of four payments).

Failure by a provider to deliver the service to the satisfaction of the Department may result in the application of penalties by the department. Contractors are subject to regular inspections, assessment of their performance against contracted targets and surveys of customer satisfaction. If the service is not being delivered to the department’s satisfaction and/or if the employment placement targets as set out in the contract are not being achieved this may result in the application of penalties by the department through the retention of fees. Fees may be reduced by up to 15% until the underperformance is addressed. In addition, ultimately the Department has the right to terminate the contract in such circumstances.

No such penalty clauses apply to the department.

I hope this clarifies the matter for the Deputy.

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