Factsheet for measure
GR-1996-17/2564
–
Updated
– measures in Greece
LAEK, Special Fund for the Employment and Vocational Training
ΛΑΕΚ, Λογαριασμός για την Απασχόληση και την Επαγγελματική Κατάρτιση
Background information
Private companies and public sector bodies whose employees are insured through EFKA (the Unified Social Security Fund) can take part in the programme.
At the beginning of each calendar year, OAED publishes the 'LAEK-0.24% Vocational Training Programme' circular, which specifies the terms under which companies can implement the education and training programmes that their employees will attend through LAEK.
By virtue of Law 4921/18.04.2022 the "Special Account for Vocational Training" (E.L.E.K.) is established as a a non-profit-making legal entity and operated by the social partners signing the National General Collective Labour Agreement.
Content of measure
LAEK is the Employment and Vocational Training Fund. It is managed by OAED (Technical support from Manpower Employment Organisation) and its revenues come from employers’ contributions paid by private and public sector companies to EFKA. The amount that each company has to pay to LAEK on a monthly mandatory basis (through the payroll system) is 0.24% of the gross income of all its employees who are insured with EFKA.
To be eligible, companies must have paid the LAEK employer's contribution of 0.24% for its employees. An employee can be trained under a LAEK training programme for up to 100 hours a year.
According to the 2018 circular, the training programmes can either be implemented by the companies themselves or assigned to training organisations. If the programme is implemented within the company, it must take place somewhere independent of the employees’ workplaces. Every training programme can be entirely theoretical or both theoretical and practical, and may take place during or outside working hours, but it may not exceed 8 hours per day.
Response to COVID-19
Due to the COVID-19 pandemic, all the educational processes in Greece, as well as the LAEK (Employment and Vocational Training Account) programmes, were suspended from 11 March 2020, and the training providers were informed about the procedures they had to follow. On 17 May 2020, the implementation time of the circular 'LAEK 0.24' of the year 2020 was completed. Therefore, only programme hours performed until the suspension of the first circular will be reimbursed. A key element of the new educational process is that the maximum number of people per department should not exceed 15, with at least 1.5 meters of distance between them. For operators that, despite the ban on the educational process and the information received by OAED (Hellenic Manpower Employment Organisation), continued to implement live training programmes during the restrictive measures, the specific hours that were performed are out of the process and will not be paid.
The new parameter changes concerning circular '0.24'
were announced on 19 May 2020 with a starting date for submitting proposals starting on 29 May 2020. Private companies and public bodies are entitled to submit an application if their employees are insured to the Single Social Security Entity (EFKA) and being subject to even one OAED Insurance Branch.
By virtue of art. 15, para 5, Law 4921/18.04.2022 (A75) a special account called "Special Account for Vocational Training" (E.L.E.K.) is established. This account is set up in a non-profit-making legal entity established and operated in accordance with the provisions of the National General Collective Labour Agreement in force from time to time by the social partners party thereto. According to press releases, the shortage of skilled personnel, which is a major issue for industry and businesses, and the inability of the State to manage the LAEK, Special Fund for Employment and Vocational Training Account, for the purpose for which it was set up, led the social partners to create the E.L.E.K. The sole objective of the creation of the new body is to ensure proper management of the approximately €80-90 million/per year of employers'-employees' contributions, towards vocational training and education of the labour force.
Updates
The following updates to this measure have been made after it came into effect.
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25 July 2022
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The measure was suspended during the COVID-19 pandemic but it is back in place.
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Use of measure
In 2018 12,491 LAEK training programmes have been implemented with 67,460 employees participating in these, according to the OAED's Activity Report (March 2015-June 2019).
Entrepreneurs who make use of LAEK programmes see it as an opportunity to make their business more innovative and competitive through employee training.
The crisis of the Greek economy, which has continued since 2009, has significantly hit LAEK’s revenues. Although in the past, the employers' contribution for LAEK amounted to 0.45% of the gross pay of employees, this figure fell in 2015 to 0.24%. At the same time, according to press reports, the number of companies implementing programmes through LAEK has recently fallen by 20-25% due to the crisis. The reason given for this decline is that many companies do not meet the funding criteria because they have incurred debts to EFKA and the state in recent years.
The Statute of the "Special Account for Vocational Training (ELEK)" was ratified and attached to the National General Collective Labour Agreement 2024-2025 as an Appendix, forming an integral part of it. This Article enters into force on the date of signature of this Agreement -that is on 14 May 2024.
Target groups
Actors and funding
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Actors
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Funding
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National government
Trade unions
Employers' organisations
Public employment service
Social insurance
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Companies
Employees
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Unknown
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Unknown
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Social partners' role in the
implementation, monitoring and assessment phase:
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Social partners jointly
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Main level of involvement: Peak or cross-sectoral level
Involvement
The Federation of Employers (Οι Ομοσπονδίες Εργοδοτικών Φορέων) are part of the administrative board governing the Fund. The Federation participates in submitting the training programs, becoming responsible for the eligibility of the companies, the trainees, the adequacy of the Training Providers and the structures where the programs are implemented.
ELEK's founding members are the national social partners that sign the National General Collective Labour Agreement that is, Greek General Confederation of Workers (GSEE), Hellenic Federation of Enterprises (SEV), Hellenic Confederation of Professionals, Craftsmen, Merchants (GSEVEE), Hellenic Confederation of Commerce & Entrepreneurship (ESEE), Greek Tourism Confederation (SETE), Federation of Industries of Greece (SBE) and their respective Research Institutes.
The main resources of the account are the 0.81% contributions paid by employers and employees (the 0.45% contribution paid by employers to the Special Account for Vocational Training and Education Programmes, and the 0.36% contribution paid by employers and employees to the Special Joint Unemployment Account); annual contributions, donations and sponsorships from the social partners; donations and sponsorships, legacies or bequests, which are subject to the approval of the Board of Directors; european, international and national grants and funding from public and/or private bodies; donations, grants and funding from public agencies, the State Budget, the Public Investment Programme, European programmes, the Corporate Pact for Regional Development (NSRF) 2021 - 2027, the National Recovery and Resilience Plan - Greece 2.0 as well as local initiative programmes
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