Joint Programme Youth Employment and Migration Youth Employment Fund - Abbreviated Guidelines in English

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1 ВЛАДА РЕПУБЛИКЕ СРБИЈЕ Joint Programme Youth Employment and Migration Youth Employment Fund - Abbreviated Guidelines in English The Youth Employment Fund (YEF) is established as a component of the Joint Programme "Support to National Efforts for the Promotion of Youth Employment and Management of Migration" (hereinafter joint programme ). The Joint Programme is funded by the MDG Achievement Fund and the Government of Serbia with a total budget of 8 million USD. Its main aim is to support national and local institutions to implement policy and operational measures that will increase youth employment in Serbia and reduce the negative impact of return and irregular migration. Eligibility The general eligibility criteria regard young men and women from 15 up to 30 years old, who are registered at least three months in National Employment Service branch offices in Belgrade, Novi Sad, Vranje, Nis and Jagodina with a level of education I or II (less than primary and primary, including secondary school dropouts). Within these general eligibility criteria, young Roma, refugees, IDPs and returnees, young people with disability, young members of household on social assistance may be exempt from the educational attainment criteria (level I and II) and from condition to be registered at least three months by the discretion of the Branch Office Director. This will allow prioritizing for programme participation those registered young people facing multiple labour market barriers. Institution based training programmes Institution-based training programmes will be contracted only to training providers that are able to: i) provide competency-based training in the occupation of choice; and ii) organize a minimum practice period in a real work setting (equal to at least 30 per cent of the total duration of the training programme). The length of the training may vary according to individual needs, but its duration will not be less than 1 nor longer than 6 months (based on the requirements of the occupation and pace of learning of individual trainee). For its services, the training provider is entitled to a training grant per individual, which ranges from a minimum of RSD 14,000 for a course of 1 month (minimum of 100 training hours) to a maximum of RSD 84,000 for a course of 6 months (minimum 600 hours of training). An advance of 50 per cent of the training grant will be paid at the start of the course, while the final payment will be conditioned to: i) the assessment of competency acquired by the External Assessment Board; and ii) the verification of employment six months after programmes end for at least 50 per cent of participants trained. The young client is entitled to compensation equal to 60 per cent of the minimum wage as in force in June 2009 (i.e. RSD 9,360 per month). The cost of health insurance and insurance against accidents calculated on the lowest monthly base for social security contribution will be paid monthly by the NES directly to the competent authorities using the envelope of funding put at disposition by the MDG-F joint programme for programme administration. In case entry medical exams are required for the training programme in question, the costs of these exams will directly be covered through the YEF as described above. 1

2 In instances where the training provider, in addition to competency-based training, offers also board and lodging to the young client, the maximum amount to be paid to the providers and the young client will be decided on a case by case basis, but it will not exceed RSD 128,000 per individual. The competencies acquired by the young participant during the institution-based programme will be certified by an External Assessment Board. This Board will be set up by each branch office in collaboration with the Local Council and it will comprise: an expert on vocational training (NES); a representative of the local Education Board (or vocational school), a representative of industry (an expert worker and/or an employer that works in/offers the occupation for which competencies are assessed). On-the-job training programmes (prequalified employment) On-the-job training (OJT) programmes are contracted by the branch office to applicant enterprises that comply with the general eligibility criteria established for both enterprises and training providers and have at least 5 employees. In addition to compliance to these criteria, its bank account must not be blocked in the 6 months prior to application for programmes, which will be verified through the National Bank of Serbia website. The total number of beneficiaries that can be placed with a single enterprise will depend on the size of the enterprise and the capacity to adequately train and supervise more participants at any given time. The ratio workers/trainees cannot be less than 5:1. This ratio may be changed to 3:1 in exceptional cases. The length of the training will vary according to individual needs, but duration will not be less than 1 month nor longer than 6 months. There is no employment obligation on the enterprise. However, if an enterprises wishes to train more than 10 beneficiaries at the same time, the enterprise incurs the obligation to recruit at least 50 per cent of participants for a period equal to the period of training. For its services, the enterprise is entitled to a training grant per individual, which ranges from a minimum of RSD 14,000 for a course of 1 month (minimum 100 training hours) to a maximum of RSD 84,000 for a course of 6 months (minimum 600 hours of training). An advance of 50 per cent of the training grant will be paid at the start of the course, while the final payment will be conditioned to the assessment of competencies, conducted up to 30 days after the completion of the training, by the External Assessment Board. The young client is entitled to compensation equal to 60 per cent of the minimum wage as in force in June 2009 (i.e. RSD 9,360 per month), while the enterprise is obliged to prove that insurance against accidents has been covered according to standard NES procedures. In case entry medical exams are required for the training programme in question, the costs of these exams will be paid by the NES directly to the competent authorities using the envelope of funding put at disposition by the MDG-F joint programme for programme administration. The case manager may consider mixing on-the-job training with: Institution-based training, for a period not exceeding 3 months; Work trial programme for the maximum period of 30 days; Employment subsidy, for a period not exceeding 3 months. Work-training programmes Under work-training programmes, enterprises recruit a young person proposed by the branch office with a definite or indefinite employment contract. The employment contract offered by the employer needs to be at least double the duration of the training programme The enterprise commits to provide competency-based training, as envisaged in the training plan, for the young worker for at least 20 per cent of work time for a period of 3 months (renewable for another 3 months). 2

3 The content of the training, as well as duration and training methods, may vary according to individual needs and the requirements of the job. The proportion workers/trainees in any given company should never exceed 5:1 (apart from exceptional cases when the ratio may be 3:1). The training grant will range from RSD18,000 for a period of 3 months (minimum 96 hours/training) to RSD36,000 for a training period of 6 month (minimum 200 hours/training). The payment to the enterprise will be done 50 per cent in advance and 50 per cent after the external evaluation of the competencies acquired which will be carried out by the External Assessment Board. Employment subsidy programmes The employment subsidy programmes to be offered and financed by the NES under the coordination of the MDG-F joint programme envisage the reimbursement (100 per cent) of the employer s share of social security contributions for a period ranging from 1 to 3 months with an obligation on the employer to retain the workers for a minimum additional period equal to the duration of the subsidy. Only for young Roma, young people with disabilities and young workers in the informal economy can the employment subsidy be extended in length. Employment subsidies will be offered to unemployed who face serious disadvantages in entering the labour market and only in combination with a training programme (off- and on-the-job training or work-training programmes). One indication of disadvantage for young people is an unemployment spell longer than six months. The partner enterprise concludes an employment contract (which may be for a definite or indefinite period of time) with the participant, in compliance with the parameters of the labour law. Work trial programmes The NES case manger may consider offering an employer that has an open vacancy to try one young client of the target group for a period of maximum 30 working days with no obligation to retain him/her, provided that the job announced is of at least three month duration full-time (or six months for part-time). The trail period will be governed by article 16 of the Serbian Labour Code, whereby both the employees and the employers can terminate the relation by providing 5 days notice. If the employer decides at the end of the trial period not to retain the beneficiary, s/he has to notify the NES branch office the reason thereof. This programme will offer both the worker and the enterprise the possibility to see whether they are suited to each other. Enterprise can apply to work-trial programmes only once, for maximum 3 beneficiaries and in accordance to the 5:1 (3:1 in exceptional cases) workers/beneficiaries principle. This programme may work when the competencies of the beneficiary (acquired through one of the competency-based training programmes described above) are similar to the vacancy requirements and the employer just needs to verify the suitability of the candidate. The low level of education of beneficiaries and the average length of their unemployment spell send negative signals to employers and this programme may overcome such constraints by offering a work trial period at no cost for the employer. This programme available only in combination with a programme aimed at increasing the skills level of beneficiary entitles the employer to receive a subsidy equal to RSD 984 per working day, up to maximum RSD 29,520 for 30 working days for each beneficiary recruited under this scheme. Self-employment programmes The counselling sessions for individual employment planning will provide indications on whether the individual wishes to pursue self-employment as a career choice. 3

4 To diversify the offer of self-employment programmes, additional services will be added to the current package, namely: i) the provision of post start-up business services, including administration, finance, marketing and human resource management to be contracted to local service providers, and ii) the conditioning of self-employment grants to the mentoring services already available at the NES. The self-employment programme will target primarily young people in the age group old and priority will be given to groups of young people who want to set up a business together. A limited number of grants will also be assigned out of the overall number of grants available to each branch office, according to the standard procedures of the NES (business plan competition) conditioned, however, to the provision of mentoring assistance in the six months following the firm establishment. The beneficiary is obliged to return the amount of the grant if the business fails to survive for at least 12 months from the date of its registration. Mobility and child care grants A percentage of the total funding available for the youth employment programmes will be set aside to assist target individuals that face particular difficulties to take up employment or a programme offered by the branch office. During programme participation, a monthly subsidy equal to RSD 2,500 payable to the beneficiary through a bank account to cover transport cost to reach a training/work place in cases when there is no regular city transport between the place of residence of beneficiary and the place of training. The child care grant is available to young single parents with children less than 6 years of age (e.g. not in school). It will consist of a monthly contribution of RSD to cover child care expenses for taking up work/programme offered by the NES. Addressing the needs of young persons with disabilities For the recruitment of the young person with disabilities (PWD) the enterprise may receive: 1) monthly subsidy in the amount of RSD for PWD with educational attainment level up to II, and RSD for PWD with the higher level of education for a period ranging from 1 to 6 months, with an obligation to retain the workers for a minimum additional period equal to the duration of subsidy; 2) grant for the adaptation of the enterprise premises equal to RSD (payable only once); and 3) a grant of RSD to adapt workstations (this amount can be multiplied by the number of work-stations to be adapted, but for not more than 5 persons). 4

5 Summary of active labour market measures financed through the Youth Employment Fund Duration and cost Labour market training Institution based training 1750 beneficiaries trainined 1-6 months duration, min 100h per month (may be Provider: 140 RSD per hour RSD 14,000-84,000 (126,000 if max for Roma) Trainee: RSD 9,360 per month 1-6 months duration, min 100h per month (may be On-the job training Provider: 140 RSD per hour RSD 14,000-84,000 (126,000 if max for Roma) Trainee: RSD 9,360 per month Work-placement programmes 1000 beneficiaries employed Work-training contracts 3+3 months, 20% of working hours in training (may be Enterprise: RSD 18,000 (min 96 hours of training in 3 months)-36,000 (min 200 hours of training in 6 months) (54,000 if max for Roma) max 30 working days Work-trial Enterprise: RSD 984 per working day, max RSD 29, months (may be extended for an additional 3 months for Roma, PWD and workers in the informal economy) Employment subsidies 100% reimbursement of employer's share of social security contributions Self-employment 250 beneficiaries self-employed RSD 130,000 per beneficiary Additional grants Decided on a case-by-case basis and for PWD Child care RSD 15,000 Mobility RSD 15,000 Work premises and workstation adaptation for PWD RSD 80,000 for premises adaptation per enterprise RSD 80,000 for each work station adaptation 5