Training and Employment

Scottish Local Authority Support for Training and the Employment of Disadvantaged/Disabled Workers (SC10292)

Legal Context

In terms of Section 20 of the Local Government in Scotland Act 2003, Scottish Local Authorities may provide training aid and incentives to recruit disadvantaged or disabled workers to firms in accordance with the UK Subsidy Control Framework.

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. Aid will not however be given which is conditional on the exporting performance of the recipient nor will the aid be contingent on the use of domestic over imported goods and services. In addition aid will not be given to “ailing or insolvent” enterprises.

Eligible Costs

For training activities the eligible costs are as undernoted:

(a) trainers’ personnel costs, for the hours during which the trainers participate in the training;

(b) trainers’ and trainees’ operating costs directly relating to the training project such as travel expenses, materials and supplies directly related to the project, depreciation of tools and equipment, to the extent that they are used exclusively for the training project. Accommodation costs are excluded except for the minimum necessary accommodation costs for trainees' who are workers with disabilities;

(d) trainees' personnel costs and general indirect costs (administrative costs, rent, overheads) for the hours during which the trainees participate in the training.

Training carried to comply with national mandatory standards on training will not be eligible.

The eligible costs in respect of the employment of disadvantaged workers shall be the wage costs for a maximum of 12 months (24 months in respect of severely disadvantaged workers).

The eligible costs in respect of the employment of disabled workers will be the wage costs for the duration of employment

The eligible costs in respect of compensation for the additional costs of employing workers with disabilities shall be the following:

(a) costs of adapting the premises;

(b) costs of employing staff solely for time spent on the assistance of the workers with disabilities and of training such staff to assist workers with disabilities;

(c) costs of adapting or acquiring equipment, or acquiring and validating software for use by workers with disabilities, including adapted or assistive technology facilities, which are additional to those which the beneficiary would have incurred had it employed workers who are not workers with disabilities;

(d) costs directly linked to transport of workers with disabilities to the working place and for work related activities;

(e) wage costs for the hours spent by a worker with disabilities on rehabilitation;

(f) where the beneficiary provides sheltered employment, the costs of constructing, installing or modernising the production units of the undertaking concerned, and any costs of administration and transport, provided that such costs result directly from the employment of workers with disabilities.

The eligible costs in respect of compensating for the costs of assistance provided to disadvantaged workers shall be the costs of:

(a) employing staff solely for time spent on the assistance of the disadvantaged workers over a maximum period of 12 months following recruitment of a disadvantaged worker or over a maximum period of 24 months following recruitment of a severely disadvantaged worker;

(b) training such staff to assist disadvantaged workers.

Aid Intensities

The aid intensity in respect of training support granted shall not exceed 50% of the eligible costs. It may however be increased, up to a maximum aid intensity of 70% of the eligible costs, under the following conditions

(a) by 10% if the training is given to workers with disabilities or disadvantaged workers;

(b) by 10% if the aid is granted to medium-sized enterprises and by 20% if the aid is granted to small enterprises;

Where the aid is granted in the maritime transport sector, the aid intensity may be increased to 100% of the eligible costs provided that the following conditions are met:

(a) the trainees are not active members of the crew but are supernumerary on board; and

(b) the training is carried out on board of ships entered in Union registers.

The aid intensity is respect of support for the employment of disadvantaged workers shall not exceed 50% of the eligible costs

The aid intensity is respect of support for the employment of disabled workers shall not exceed 75% of the eligible costs

The aid intensity in respect of support for compensating the additional costs of employing workers with disabilities shall not exceed 100% of the eligible costs.

The aid intensity in respect of support granted towards the costs of assistance provided to disadvantaged workers shall not exceed 50%of the eligible costs.

Definitions

A SME is defined as being a company is an that meets two of the following three characteristics:

(a) annual turnover less than €50m

(b) number of employees less than 250; or

A “disadvantaged worker' means any person who:

(a) has not been in regular paid employment for the previous 6 months; or

(b) is between 15 and 24 years of age; or

(c) has not attained an upper secondary educational or vocational qualification(International Standard Classification of Education 3) or is within two years after completing full-time education and who has not previously obtained hisor her first regular paid employment; or

(d) is over the age of 50 years; or

(e) lives as a single adult with one or more dependents; or

(f) works in a sector or profession in a Member State where the gender imbalance is at least 25% higher than the average gender imbalance across all economic sectors in that Member State, and belongs to that underrepresented gender group; or

(g) is a member of an ethnic minority within a Member State and who requires development of his or her linguistic, vocational training or work experience profile to enhance prospects of gaining access to stable employment.

A “severely disadvantaged worker” means any person who:

(a) has not been in regular paid employment for at least 24 months; or

(b) has not been in regular paid employment for at least 12 months and belongs to one of the categories (b) to (g) mentioned under the definition of 'disadvantaged worker'.

A “disabled worker” means any person who means any person who:

(a) is recognised as worker with disabilities under national law; or

(b) has long-term physical, mental, intellectual or sensory impairment(s) which, in interaction with various barriers, may hinder their full and effective participation in a work environment on an equal basis with other workers.

Budget

The estimated budget of the scheme is £15m per annum.

Duration

The scheme will operate from 1st January 2021 to 31st December 2025.

(ML / June 2021)