The new Act on active labour market policy aims to decentralise labour market policy measures. In future, regional councils, composed of representatives of the social partners, will be responsible for organising measures for the unemployed. The aim is to ensure a closer cooperation with local firms so that the measures will be better suited to local needs.

Greater emphasis will be put on training and job rotation. It will be made easier to agree on job rotation schemes with firms that let their employees participate in continuing training courses. The unemployed who are to replace those on leave should be trained for the jobs they are taking over. This way, the unemployed will be trained in regular jobs.

1.2.1.1. Parental and training leaves

The new leave schemes (Act no. 273) represent an improvement on existing schemes. Under the new legislation, all parents with small children are entitled to leave to take care of their children for up to 26 weeks. They may also make an agreement with the employer to prolong the period of leave by up to a further 26 weeks. The person on leave will receive 80% of the unemployment benefit rate. The employer may supplement the benefit.

On 1 January 1994 new rules on training leave come into force. Training leave for up to one year may be taken by the unemployed, the employed and the self-employed, the aim being to promote life-long learning and the constant up-dating of acquired skills. Training leave must be agreed upon with the employer. During the currently existing collective agreements the training benefit is 100% of the unemployment benefit. Here too, the employer may supplement the amount, for instance by granting full pay during the period of training leave.

Finally, sabbatical leave is introduced as a pilot project for one year. Such leave must be agreed with the employer and the person on leave is to receive 80% of the rate of unemployment benefit.

The reforms primarily have a labour market policy objective, namely to contribute to an improvement of the skills of the labour force, for instance by increasing job rotation. But they also have positive educational and family-policy effects. The reform reflects the necessity - in the light of the present high level of unemployment - of creating the framework for a new working life which will, to a greater extent than at present, alternate between work, training and leave. Workers will be in a position better to reconcile working life, family life, and the need for continued training.

However, the better distribution of the existing work through leave schemes and temporary replacement is not an alternative to creating more jobs: the redistribution strategy is only a supplement to other employment measures.

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