Key provisions
New form of aid to promote employment of long-term unemployed
The law has introduced a new form of aid to promote the employment of the long-term unemployed. This system will create a certain number of new jobs each year with open-ended employment contracts. This number will be set by the Budget Law; for 2017, it is capped at 150.
This new form of aid is intended to help unemployed people who:
· are aged 30 years or older;
· are registered with the Employment Development Agency; and
· have been out of work for at least 12 months.
Employers affected by this new form of aid include:
· the government;
· municipalities and municipal unions;
· public bodies;
· companies with a societal impact whose share capital comprises 100% impact shares;
· foundations; and
· non-profit organisations.
The aid comprises a refund of salary costs incurred by employers, which will be:
· capped at 150% of the minimum social wage for unqualified employees; and
· calculated on a decreasing sliding scale of:
o 100% for the first year;
o 80% for the second year; and
o 60% for the third year.
For unemployed persons aged 50 years or older, a refund of the salary costs, capped at 100%, is available until he or she becomes eligible for an old-age pension.
The refund will be suspended if the employee resigns or is dismissed after the end of the trial period.
Change to aid system for hiring older unemployed persons
The law has introduced new conditions for awarding aid. For example, employers must make a declaration in advance to the Employment Development Agency regarding a vacancy. Further, employers will be excluded from the refund scheme if the partner or relative (up to the second degree) of an unemployed person benefiting from the scheme owns the majority of the employer's share capital.
The refund of social security contributions that was available for the employment of an 'older' unemployed person has been limited to the employer's share of these contributions. 'Older' now means someone aged 45 years or older (previously, this threshold was 30 years old).
The duration of an aid payment period is limited to:
· two years for unemployed persons aged between 45 and 49; and
· up until the day on which an old-age pension is awarded for unemployed persons aged 50 or older.
The law specifies that the aid provided to help employ older unemployed persons and the aid provided to employ the long-term unemployed cannot be combined.
Professional training internship available for unemployed persons aged between 30 and 44
Until now, the professional training internship was available exclusively for unemployed persons who were:
· aged 45 or older; or
· concerned by an external reclassification.
This internship has now been made available for unemployed persons between the ages of 30 and 44.
The right to full unemployment benefits has been extended for a period equal to the duration of the professional training internship, where the internship does not result in the unemployed person being hired by the company.
Reducted duration of compensated temporary occupations
The maximum duration of a compensated temporary occupation has been reduced from 12 months to six, including renewals.
Sponsors can benefit from only one compensated temporary occupation for the same position over a period of 12 months, with certain exceptions.
Sponsors must provide statutory and contractual supplements to employees who work at night or on Sundays or legal public holidays, perform unhealthy work or work overtime in compensated temporary occupations established after the law came into force.