The Flemish government has recently approved a plan that aims to improve the opportunities for the long-term unemployed of finding employment in the private sector by enabling them to gain additional work experience (WEP privé plan). It supplements the measures already in existence which each year offer employment in the public sector for around 6,000 people (cf. BIR B-v.1 and 2). The statutory basis for this plan is provided by a decree issued by the Flemish government on 1 September 1998 (Moniteur belge, 30.9.1998).
This decree provides for a wage-cost subsidy for difficult-to-place unemployed persons who are recruited under an employment contract and whose monthly working hours correspond to at least half of the full-time working regime. The financial support is available for up to one year.
The plan is aimed at commercial, private-sector employers: public-sector employers and non-profit organisations are excluded from the field of application of this measure.
In order to be classified as difficult to place, unemployed persons must meet the following two conditions:
- they must be entitled to participate in the Recruitment Promotion Plan (plan avantage à l'embauche: cf. BIR B-v.8), and
- they must have been registered as unemployed at the time of recruitment for at least 36 months.
An employer recruiting such an unemployed person under a permanent employment contract or a fixed-term contract of at least one year's duration is entitled to claim the work experience grant. The level of the grant per month is determined as follows:
- for a working-time regime corresponding to at least half of normal working hours:
- unemployment period between 36 and 48 months: BEF 5,000;
- unemployment period between 48 and 60 months: BEF 10,000;
- unemployment period exceeding 60 months: BEF 19,000.
- for a working-time regime corresponding to at least 4/5 of normal working hours:
- unemployment period between 36 and 48 months: BEF 8,000;
- unemployment period between 48 and 60 months: BEF 16,000;
- unemployment period exceeding 60 months: BEF 18,000.
The Flemish government decree also foresees the provision of a "guidance grant" (prime à l'accompagnement). The aim of this guidance is to improve the worker's employability with the help of an individualised guidance plan. The employer may submit an application to an organisation offering guidance (the Flemish public employment service [VDAB] or another approved organisation). A grant of up to BEF 50,000 per employed worker may be allocated to cover the cost of the aid provided by the guidance organisation.
The grants may not be combined with other wage-cost subsidies, with the exception of reductions in employer social insurance contributions and financial support under the Recruitment Promotion Plan (cf. BIR B-v.8).
The grant may be suspended if:
- clear and confirmed suspicions exist that an employer has dismissed one or more workers with the intention of replacing them by one or more jobseekers for which he or she is entitled to claim the grant;
- the employer fails to respect the regulations applying to pay and other working conditions.
BEF 350 million have been earmarked for the implementation of the measure.
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