SCOTTISH LOCAL AUTHORITY SUPPORT FOR TRAINING AND THE EMPLOYMENT OF DISADVANTAGED/DISABLED WORKERS (COMMISSION REGULATION EC No 800/2008 – OJEC C 214 OF 9 AUGUST 2008 Reference X160/2008)

LEGAL CONTEXT

In terms of Section 20 of the Local Government in Scotland Act 2003 (http://www.opsi.gov.uk/legislation/scotland/acts2003/asp_20030001_en_1), Scottish Local Authorities may provide training aid and incentives to recruit disadvantaged or disabled workers to firms in accordance with Articles 38 to 41of the Commission Regulation (EC) No 800/2008 (“the Regulation”).

OBJECTIVES OF THE SCHEME

The objectives of the scheme are to provide discretionary funding to assist undertakings to develop the skills of their staff, thus creating a skilled trained and adaptable workforce and a labour market that is responsive to economic change.

In addition local authorities may provide incentives to enterprises to employ disadvantaged or disabled workers

Assistance provided under the scheme will be the minimum necessary to achieve these objectives.

ELIGIBLE SECTORS

The scheme shall apply to all sectors of the economy with the exception of the sectors referred to in Article 1 (sections 3 to 6) of the Regulation.

ELIGIBLE COSTS

For training activities the eligible costs are as undernoted:

(a) trainers’ personnel costs;

(b) trainers’ and trainees’ travel expenses, including accommodation;

(c) other current expenses such as materials and supplies directly related to the project;

(d) depreciation of tools and equipment, to the extent that they are used exclusively for the training project;

(e) costs of guidance and counselling services with regard to the training project; and

(f) trainees’ personnel costs and general indirect costs (administrative costs, rent, overheads) up to the amount of the total of the other eligible costs referred to in points (a) to (e). With regard to the trainees’ personnel costs, only the hours during which the trainees actually participate in the training, after deduction of any productive hours, may be taken into account.

For activities targeted at disadvantaged workers, eligible costs shall be the wage costs over a maximum period of 12 months following recruitment and 24 months in the case of a severely disadvantaged worker.

Eligible costs for support for the employment of disabled workers shall be the wage costs over any given duration which the disabled worker is employed.

Where the recruitment of disadvantaged or disabled workers does not represent a net increase, compared with the average over the previous 12 months, in the number of employees in the undertaking concerned, the post or posts shall have fallen vacant following voluntary departure, disability, retirement on grounds of age, voluntary reduction of working time or lawful dismissal for misconduct and not a result of redundancy.

Except in the case of lawful dismissal for misconduct, the disadvantaged or disabled worker shall be entitled to continuous employment for a minimum period. In cases where the period of employment is shorter than 12 months, the aid shall be reduced pro rata accordingly.

AID INTENSITIES

The aid intensity for training support shall not exceed:

Specific Training – 45% for small, 35% for medium and 25% for large enterprises and an increase of a further 10% can be given where the training involves disabled or disadvantaged workers.

General Training – 80% for small, 70% for medium and 60% for large enterprises and an increase of a further 10% (subject to a maximum aid intensity of 80%) can be given where the training involves disabled or disadvantaged workers.

In cases where the aid project involves both specific and general training components which cannot be separated or in cases where the specific or general character of the training aid project cannot be established, the intensities applicable to specific training shall apply.

The aid intensity shall not exceed 50% of the eligible costs in respect of the recruitment of disadvantaged workers. The aid intensity for disabled workers shall not exceed 75% of the eligible costs.

DEFINITIONS

“Specific training” and “general training” shall be defined in confor mity with Article 38 of the regulation.

“Small” and “medium” sized enterprises shall be defined in conformity with Annex 1 of the regulation.

“Disadvantaged worker”, “severely disadvantaged worker” and “disabled worker” shall be defined in accordance with the criteria set out in Article 2, sections18 to 20, of the Regulation.

BUDGET

The estimated budget of the scheme is £2m per annum.

DURATION

The scheme will operate from 1st January 2009 to 31st December 2013.