Michael Ring (Mayo, Fine Gael)
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371. To ask the Minister for Employment Affairs and Social Protection the reason that several persons are losing their jobs with the reconfiguration of the local employment services and job clubs; if the existing community-based organisations will be provided with the resources to provide a fair severance package, in line with the established practice in the sector; and if she will make a statement on the matter. [44536/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Following a competitive tendering process run 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 Employment Service (IPLAES). This replaces Local Employment Service and Job Club contracts. 16 of these contracts are now in place and the new service is being mobilised with the support of my Department.

The Department was obliged to conduct a procurement process for these services, the clear advice from the Chief State Solicitor’s Office and from the Attorney General is that the Department was in breach of national and EU procurement rules and there needs to be competitive procurement for its employment service contracts.

The new IPLAES service represents a significant increase in state investment in these services from €23m per annum to €39m per annum exclusive of VAT. The services will be state-wide and represent a substantial expansion on employment services previously available to the long term unemployed cohort who will benefit from this new expanded service.

Some former providers of LES and Job Club services, including those who successfully bid for the new contracts, have issued redundancy notices to some of their staff. This is despite the increased investment in services. My Department cannot direct or determine the employment and staffing of third-party contractors.

My Department is not the employer of contracted staff and therefore 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 the my Department’s Redundancy and Insolvency service.

I trust that this information is of assistance to the Deputy.