Aid to preserve jobs/aid for education and training of workers

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Name of the instrument - Local language
Potpora za očuvanje radnih mjesta/potpora za obrazovanje ili osposobljavanje radnika
Name of the instrument - English translation
Aid to preserve jobs/aid for education and training of workers
Scheme ID
97
Country
Croatia
Reporting year
2020
Type of instrument
Grant for companies
Sub-type of instrument
Support for direct costs
Type of entry
Single instrument
Short description

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.

Not applicable
Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Key instrument
Labour Act (Official Gazette 93/14, 127/17, 98/19); Labour Market Act (Official Gazette 118/18, 32/20)
Objective(s) and target(s)
Reducing unemployment, in particular persons in the age group over 50 years of age. Preserving the jobs.
Year of implementation
2015
Year of latest amendment
2018
Operation/management
The Croatian Ministry of Labour and Pension System is responsible for management; Croatian Employment Service (CES) is responsible for implementation and monitoring. A Commission appointed by the Minister of Labour and composed of representatives of the social partners and the CES gives an opinion on approval/disapproval of employers' application for aid.
Eligible group(s)
Companies experiencing a temporary slowdown in their business activity and/or has incurred economic losses. In particular, companies with long-term employees and/or employees aged over 50. Employers cannot claim support if they have outstanding tax and contribution obligations.
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
Training included in company's training plan, addressing company's needs, including: - Programmes leading to a formal qualification (formal education) of ISCED 3-5 level. - Occupational courses connected to the present economic activity of the participant.
Source of financing and collection mechanism
State budget;Employer;EU funds.
Financing formula and allocation mechanisms
The company meeting pre-determined criteria can apply for a grant. The maximum amount of funding is HRH 7 000 (approx. EUR 941 per employee). The funding amount is directly transferred to the employer as reimbursement of costs: 70% of funds within 30 days from the date of confirmation of the authenticity of the signed contract and payment order, 30% of funds within 30 days from the date of delivery of the employer's report on the implementation of the education programme and entering a payment order.
Eligible costs
Education/training fees
Volumes of funding
Overall volumes of funding available:2017: HRK 200 000 (approx. EUR 26 501)2018: HRK 40 440 (approx. EUR 5 453)2019: HRK 17 766 000 (approx. EUR 2 388 866)Overall volumes of funding actually disbursed:2017: 135369,36 (approx. EUR 1 793 684)2018: 2 672 (funds referring to a payment from 2017, but paid in 2018) (approx. EUR 360)2019: 18 049 051,42 (approx. EUR 242 692 637)
Beneficiaries/take up
Total number of companies as beneficiaries: 2017: 9 2018: 0 2019: 47
Organisation responsible for monitoring/evaluation
Croatian Employment Service (CES).
Monitoring/evaluation reports available
Not available
Most relevant webpage - in English
https://www.europarl.europa.eu/RegData/etudes/STUD/2019/642345/IPOL_STU…
Most relevant webpage - local language
https://mjere.hr/mjere/potpore-ocuvanje-radnih-mjesta/
Recent changes

New Labour Market Act (Official Gazette 118/18, 32/20). Changes: Implementing measures within the competence of the Croatian Employment Service (employment aid, training aid, financing of education of unemployed persons, employment in public works and other measures within the competence of the CES) are based on Articles 34-36 of the Labour Market Act (Official Gazette 118/2018). - Article 34 prescribes the manner of adoption and content of active employment policy. - Article 35 defines the content and main objectives of measures to encourage employment. - Article 36 determines the conditions and methods funds' implementation of measures within the competence of the Croatian Employment Service. The Law regulates the labour market through employment mediation, vocational guidance, education in order to increase the employability of the labour force, unemployment insurance, active employment policy measures, other activities aimed at encouraging spatial and professional mobility of the labour force, new employment and self-employment, employment on temporary or occasional jobs in agriculture and the organization, management and performance of the activities of the Croatian Employment Service.

Recent changes in response to COVID-19

Aid to preserve jobs has been disrupted in the sense that the focus of the measure is not anymore on training. New aids to preserve jobs have been introduced to support the financing of employee wages in certain sectors affected mostly by Covid-19. Other aids to preserve jobs measures are aiming to compensate a certain amount of weekly working hours as partial compensation for the wage. More information: https://gov.hr/moja-uprava/poslovanje/potpore-poslodavcima/mjere-aktivn…

Sources
Labour Act (Official Gazette 93/14, 127/17, 98/19), (Zakon o radu), https://www.zakon.hr/z/307/Zakon-o-radu
https://www.europarl.europa.eu/RegData/etudes/STUD/2019/642345/IPOL_STU… The employment and social situation in Croatia (2019), European Parliament Policy Department for Economic, Scientific and Quality of Life Policies Directorate-General for Internal Policies Authors: Iva TOMIC, Ivica RUBIL, Danijel NESTIC, Paul STUBBS
Labour Market Act (Official Gazette 118/18, 32/20), (Zakon o trzistu rada), https://www.zakon.hr/z/1751/Zakon-o-tr%C5%BEi%C5%A1tu-rada
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