The job losses were announced a few days before Christmas following a collapse in the paper market.
The company, Pharoh, carried out doorstep collections of waste paper in Southend, Havering, Chelmsford and Uttlesford.
The service proved popular with the public but on 18 December the company announed they were making the 36 staff working on the collections redundant.
Now both Havering and Uttlesford councils have decided to continue the scheme, taking on some of the original Pharoh staff. Nineteen of the original redundancies have been averted, at least temporarily.