AN employee of Fás, who was let go in the week that director general Rody Molloy was forced to resign, has still not received any money in redundancy payments.

Two staff members lost their positions in the Carrick-on-Suir, Co Tipperary, jobs club last November, after a review of operations at its centre found that targets were not being met.

As arrangements were being made for a €1.1m golden handshake for former Fás boss Rody Molloy, the two workers were offered around €10,000 each in redundancy.

The total payment being offered was less than the value of the Audi A6 car which Molloy was also allowed to keep under the terms of his resignation from the state body.

Fás insisted redundancy payments had been offered to both employees and it is understood one of them took up an offer last week, almost a year after losing her job.

A statement said the state body had discontinued funding of the jobs club in the Co Tipperary unemployment blackspot last November after "several months of mediation".

A statement said: "This jobs club had failed to reach targets and was not in compliance with contractual conditions.

"Fás had an obligation to ensure that funding provided results in the best possible service to meet the needs of people.

"The two staff members were consequently entitled to a redundancy payment.

"The amount for both staff members was calculated and made available to them both on closure of the jobs club.

"The redundancy payment was based on the payments both staff members were receiving on the cessation of the jobs club. The level of that payment was in line with the provisions of benchmarking, Sustaining Progress and latterly T16.

"This is in line with the requirements of the Department of Enterprise, Trade and Employment and the Department of Finance.

"One of the staff members has now accepted the payment and the payment is available to the other staff member if he wishes to accept it."

Fás said it was committed to providing training and development in south Tipperary and had allocated funding of almost €18m to the area in 2008.

It said jobs clubs were required under contract to assist between 120 and 140 people every year but the Carrick-on-Suir office had failed to meet this target.

Fás said in 2006 and 2007, an average of 70 people had been helped each year and much of the work had been replicated by a local employment service, which was operating from the same building.