Scheme promotes continuing training in small companies
Published: 27 April 1999
February 1999 saw the introduction of a new scheme in Portugal, aimed at encouraging continuing vocational training, especially in small companies, while giving work experience to young and long-term unemployed people.
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February 1999 saw the introduction of a new scheme in Portugal, aimed at encouraging continuing vocational training, especially in small companies, while giving work experience to young and long-term unemployed people.
Portugal suffers from serious shortcomings with regard to initial vocational training, with low levels of formal education and of basic vocational qualification. Above all, there is a lack of continuing vocational training, which is considered to be a key factor in improved employee performance and the modernisation companies. The structure of businesses has often been blamed for the situation: more than 90% of all Portuguese businesses are micro and small businesses (with up to 50 workers) and find it difficult to provide training courses, despite the provisions in this area in the 1996-9 tripartite Strategic Concertation Pact (PT9808190F)
However, the government has recently created a mechanism (decree-law 51/99 of 20 February 1999) that will make continuing training opportunities more available to workers in micro and small businesses. The measures will also make it easier for young and long-term unemployed people to join the labour market by providing them with vocational experience, as they will be recruited to substitute for workers undergoing training. The training initiatives concerned - which must be of direct interest to the company - will take place during working hours and involve workers being absent from their jobs. They will be substituted by unemployed people signed up at employment centres.
The following support will be provided by the Institute for Employment and Job Training (Instituto do Emprego e Formação Profissional, IEFP), through the centres for employment and vocational training:
Technical support. This includes: organisation of training plans and setting the profile for the unemployed workers to be hired; selection of workers to be trained under the training plan and the recruitment and selection of candidates to substitute for these workers; and provision in the training plan for the training during working hours of workers who have been substituted, and for the on-the-job training of their substitutes.
Financial support. Companies will: be excused from paying social security in respect of workers who have been substituted for the duration of the training; be able to claim the amount paid to the trainer who is teaching the substitute (up to 20% of the minimum national wage); and receive an amount equal to the minimum national wage, to be paid to the substitute, plus an amount to cover their social security contributions.
Trade unions have stated that they consider the new scheme to be an important step forward in continuing vocational training for small and medium-sized businesses.
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Scheme promotes continuing training in small companies, article.
