Employers and employees can agree on a payback clause. In compensation for employer-provided/financed training, employees commit themselves to stay in the company for an agreed period or (partially) pay back the costs of training. According to the Labour Code, this period differs according to the type of the training contract: contract for acquiring qualification: 6 years, apprenticeship contract: 3 years; contract for higher qualification training and retraining: 5 years. Payback clauses are possible for any type of education.
The Umenia (Skills) procedure is dedicated to employers and aims to improve the skills of the workforce, promoting professional and career development. Eligible are employers who want to improve the qualifications of their employees. If the company is not operating in a priority sphere of the economy, at least 50% of the employees included in the education for higher qualification or key competencies must have at least ISCED4 educational level and be above 54 years old. Small and micro-enterprises are preferentially treated receiving 70% co-funding of the total eligible project costs.
Companies are entitled to a tax deduction if they provide a scholarship to a pupil in secondary education or a student in higher education for a minimum of 1 year and a maximum of 2 years in an educational institution in EU-27 or in a country of the European Economic Area. The scholarship holder is a pupil in the last two classes of acquiring secondary education or a student in the last two years of acquiring a bachelor or master degree and is under 25 years of age. The amount deducted from the tax base is equal to the scholarship paid (as long as the amount is not higher than 10% of the taxable profits). The incentives are constructed in line with comparable incentives regarding donations of companies. The company and the scholarship holder have to sign a contract regulating the conditions upon which the scholarship is provided. According to the law, the occupation of the scholarship holder has to be relevant to the activities of the company. Furthermore, upon completion of the study programme, the company is obliged to hire the pupil/student for a period longer or equal to the total number of months for which the scholarship is provided. The tax incentive consists of allowing the deduction of costs that would not be treated as corporate costs otherwise. The scheme can be used once in each calendar year.
Specific vulnerable groups - young people from 15 to 29 years older people without education, qualification, and work experience, and unemployed persons aged over 50 - can apply for the grant. For the first group, the eligible education and training activities include training for acquiring a professional qualification in the field of landscaping and nursing. For the second group, training in teamwork, as well as training for acquiring a professional qualification in the profession as a nursing attendant, are eligible. Eligible costs include tuition fees/ fees for participation (external providers), costs for training materials (e.g. books), fees, and other costs related to education and training (e.g. work clothes, resources needed at the workplace. The public co-funding is fixed with an absolute amount of money and may cover up to 100% of the education and training costs. National budget covers the costs for training, Confederation of Independent Trade Unions in Bulgaria (CITUB) covers expenses for work clothes, means of labour, etc.
Companies experiencing a temporary slowdown in their business activity and/or incurring economic losses, having long-term employees or employees aged over 50, and facing the risk of reducing their workforce can apply for the grant to finance the costs of training their employees. It is implemented by the Croatian Employment Service. Only training of professional relevance for the applying company and included in the company's training plan is eligible. The maximum duration of the support is 6 months. The maximum amount of funding is HRK 7 000 (approx. EUR 941) per employee. There is no preferential treatment. There is no limitation to re-use the grant.
Employed and unemployed persons (in the age group of 15-65) without completed primary school registered in the unemployment register, applying for the grant, can receive the lump-sum payment, covering the training costs. The funding amount depends on the education period. For example, for the first educational period, the learner can receive the funding of HRK 500 (approx. EUR 67) if takes an exam based on the consultation received, HRK 1 200 (approx. EUR 161) in the case when the teaching is delivered through a consultative-constructional teaching approach, HRK 1 800 (approx. EUR 242) in the case when the learner regularly participates in the teaching process. The individual (the learner) can finish more than one educational period in one calendar year meaning that the learner can receive more than one funding for education and training in one calendar year. The funding is provided by the Croatian Ministry of Science and Education.
Increasing the level of competitiveness and professional competence of employed persons by enrolling in vocational training programmes, upskilling or retraining in line with the developments of the labour market. Employed persons, after receiving a counselling session with the CES counsellor, can decide, based on the recommendations received and tailored to their existing professional experience and preferences, to participate in an adult education programme offered by public or private adult education providers. The grant is paid directly to the adult education provider. Educational programmes are financed in two ways: 1. From ESF via a public call for adult education programmes for certain occupations and certain profiles of employed adults. The education programmes are financed through ESF funds and are thus free of charge for the participants.2. From state budget via a public call for adult education programmes that need to be awarded by CES. The allocated funding covers 100% of occurred costs.
Training leave is not directly regulated at the national level beside the provisions that employees have the right to educational leave for at least 7 days per year. The law (Article 18) also states that execution of educational leave rights shall be determined by an agreement between the employee and employer). Employer' permission to go on a training leave is required in order to keep the working place. The employee is obliged to provide the employer with the programme application form, as well as certificates of participation and completion of the programme.
In compensation for employer-provided/financed training, employees commit themselves to stay in the company for an agreed period or (partially) pay back the costs of training. In the case of premature departure from the company, the employee obliges to compensate for training-related costs occurred by the employer. The parties are free to regulate their obligations, and these must be in compliance with the Constitution of the Republic of Croatia, mandatory laws, and the morals of the society. The payback clause is not directly regulated by national law and governmental bodies are not involved in the management. The County Courts and Constitutional Court hear the case in the event of a dispute between an employer and employees and make a decision.
Training grants are awarded to micro, small and medium enterprises in the craft sector. Awarding grants intend to promote targeted training programmes for crafts that ensure quality and motivated human resources with the aim of enhancing competitiveness, boosting productivity, and growing and developing craftsmanship. The maximum amount of funding depends on the type of support (e.g. the highest amount can be allocated for preparation for the masters' exam (HRK 5 400 (approx. EUR 726))). The minimum amount that can be awarded is HRK 1 200 (approx. EUR 161). The maximum grant is 80% of the amount of eligible costs. Eligible costs include the required licenses, costs for exams, specific types of (re-)training (e.g. for mortician). There is no preferential treatment.
Companies can deduct the costs of training their employees from their tax base. The share of the costs that can be deducted depends on the size of the company and the type of education and training. The reduction can be up to 70% (80% for SMEs) of the cost of general adult education and training, and 35% (55% for SMEs) of the cost of specific education and training. If general education and training and special education and training are performed outside the place of residence or stay of workers, the costs include transportation and accommodation costs up to the amount of actually incurred costs and subsistence costs, in accordance with income tax regulations. An entrepreneur whose facilities or workshops practical classes and apprenticeship exercises are performed for occupations in the system of related trades and craft may reduce the basis for calculating income tax or income from self-employment by the number of prizes paid to students during practical classes and apprenticeship exercises.
Companies providing training for specific target groups (the newly employed, employees at risk of losing their jobs due to lack of professional knowledge and skills, as well as employees in training for work at multiple workplaces or work operations and employees affected by business reorganisation and organisational changes) can apply for this grant. It is implemented by the Croatian Employmenr Service (CES). Eligible training includes training to obtain a qulification at ISCED level 2-5, general courses (e.g. language courses) and occupational courses connected to the present economic activity of the participants. Depending on the size of the enterprise co-funding rate may differ (e.g. small businesses can receive up to 70% of co-funding and companies employing disadvantaged workers can receive up to 60% of co-funding). The maximum amount of support for training per individual is up to HRK 18 000 (approx. EUR 2 418). The funding covers a broad range of costs, including tuition fees, costs for internal training personnel, costs for training materials, depreciation costs, travel costs and related costs for counselling.
All companies in Cyprus, irrespective of their economic sector, are obliged to contribute a fixed share of their payroll costs (0.5%) to the HRDA Training Fund. In return, they may receive grants in the form of subsidies for approved training activities, such as (i) Single company Training programmes in Cyprus, and (ii) Single company training programmes abroad. These company grants are covered entirely by national sources. The actual amount of subsidy is not fixed and depends on a number of parameters whether the training is carried out in Cyprus or abroad. Co-fuding can cover 80% of eligible costs. The instrument represents a specific funding intervention whereby companies receive grants to cover part of their training costs for local and overseas VET programmes, as well as for specific thematic funding programmes targeted towards unemployed individuals.
The payback clause is not a primary type of financial instrument in Cyprus, hence it does not exist as an "official instrument or scheme". In the rare cases where a payback clause is implemented, it is governed by individual agreements, employment or otherwise, between employer and employee. There is no national law or national collective agreement to govern it. Training and training costs repayment may be scantly referred to in some sectoral collective agreements without any details as to how it should be implemented. The amount of money to be paid back and the terms of repayment are mutually agreed upon between employer and employee prior to the provision of training. Almost in all cases, payback refers to scholarships where the training costs are rather high and not to cases of normal training activities (VET) of short duration where the costs per person are much lower.
Companies receive a wage subsidy for employing newly graduated, inexperienced recruits to fill in critical vacancies. The graduates undergo a 6-month on-the-job training programme which is monitored by the HRDA. The enterprises must retain the graduates for a further 2 months-period before they can apply for subsidy (from HRDA). The subsidy covers the 6-month period of training. The employer is obliged to pay the graduate a minimum gross monthly salary of EUR 950. In return, the employer receives from HRDA, at the end of the eight (8) month retainment period, up to EUR 1 100 monthly subsidies for the six months duration of the training. The subsidy/grant is paid by HRDA entirely from its own HRDA fund (no co-funding from any source). The exact amount of subsidy can reach up to 80% of eligible costs which cover the graduate's and the supervisor's salary costs and any other training-related expenses. Graduates under the age of 30 who completed successfully a course of at least 3 years of study in a tertiary education establishment are eligible to participate in the programme provided they do not possess working experience of more than 8 months in the field of the prospective job. Graduates can only participate in the programme once. There are limits to the number of participants/per year in the scheme according to the size of the companies.
Training leave or more specific paid training leave is universally accepted as the normal practice for the cases where the employer asks employees to participate in a training activity. This is irrespective of whether or not there is a relevant specific reference in the employment contract or (a brief mention) in the sectoral collective agreement. The employer then covers all the training expenses because it is generally accepted that it is the employer that will ultimately benefit from the additional knowledge and skills that the employees will acquire through the training process. In the case where the employee asks to participate in a training programme, for his/her own personal benefit, then he/she undertakes to pay all training expenses and lose wages for the duration of the programme (unpaid training leave). Unpaid leave is more common in cases where the employee wishes to obtain a higher tertiary education qualification or attend a scholarship. Paid training leave covers by far the large majority of training leave cases. In some sectors, collective agreements may mention superficially the training leave as a means for upgrading the skills and knowledge of the employees. These agreements never enter into a detailed description of the financial aspect of it since there is no fund to cover training leave, other than the employer himself/herself.
Companies can apply for a grant to cover their training expenses. The eligible education and training activities depend on specific calls published. Occupational courses connected to the present economic activity of the participant are considered eligible types of training to be funded. The public co-funding is 85% of the eligible costs. The contribution compensates for tuition fees/fees for participation (external providers), costs for internal training personnel, and costs of wages during training. ESF funds are deployed for financing the scheme. Preferential treatment is given to companies hiring the low qualified, people within the age range of 55-64.
Employees have the right to time off (official translation of the incentive in the Labour Code) to undertake training for professional development, being understood as the education necessary for the performance of job requirements stipulated by law or necessity. An employee has to receive an employer's permission to enter training leave. Professional development must be in the interest of the employer. The law stipulates minimum requirements, modifications in favour of the employee are subject to negotiation between employee and employer, or to collective agreements. The duration of the paid training leave depends on the objective of training leave (e.g. two days for participating and completing a test, thesis defenses entitle students to ten days' leave). The training leave can be paid or unpaid. Study time conflicting with work hours and examinations are paid, but entrance examinations, resits, and ceremonies are unpaid.
Employer and employee may conclude a qualification agreement that includes the employer's commitment to enable and pay for the employee qualification upgrading and the employee's obligation to remain in employment with this employer for an agreed period, though for no longer than 5 years, or to reimburse the employer for the costs of this qualification upgrading. The payback clause can be applied also in case of improvement of qualification when training costs exceed CZK 75 000 (approx. EUR 2 970). Share paid back is reduced according to the duration of employment as a proportion of the total compelled duration of employment. The national courts would become involved in the event of a dispute.
There are 2 groups that may apply for the grant during the current EU programming period: job applicants and job seekers. The overall condition for eligibility is registration in PES databases. Specific conditions may include a sufficient prior qualification level or positive outcome of skill needs analysis by PES. The eligible education and training activities include vocational courses aimed at deepening or upgrading qualifications, re-training/re-skilling. Retraining may be selected by applicants or it may be assigned to job-seekers by PES. The co-funding rate is 100% of eligible costs. The scheme can be re-used by the same applicant after a break of a particular period.
Tax-paying students (up to 26 years old, or 28 years old in doctoral programmes) (ISCED 3-8 level) can receive a tax credit of up to CZK 4 020 per year (approx. EUR 159 per year) during the tax filling. The eligible costs are not defined, tax credit applies to any taxed income regardless of source. The students must have some taxable income in order to claim the tax credit. The tax incentive can be used in each calendar year.