Refund of employment costs of an unemployed person up to 30 years of age

Service

The issues of professional activation of young people, unemployed up to 30 years of age, who take up employment for the first time, are regulated in particular by the Act of 20 April 2004 on employment promotion and labor market institutions (Journal of Laws of 2017, item 1065, as amended). d.). Reimbursement of employment costs of young unemployed persons may be available to entrepreneurs and employers upon request, i.e. organizational units, even if they do not have legal personality, as well as natural persons, if they employ at least one employee. Pursuant to Art. 60c of the Employment Promotion Act "The starost may, on the basis of the concluded contract, refund the costs incurred by the employer for social security contributions due from the employer for the unemployed referred to work, up to 30 years of age, who take up employment for the first time in their life".

Refund of employment costs for an unemployed person up to 30 years of age

  • Reimbursement of costs incurred for social security contributions is granted for a period of up to 12 months in the amount specified in the contract, but not higher than half of the minimum monthly remuneration applicable on the date of conclusion of the contract, for each employed unemployed person.

  • The employer is obliged to continue employing the referred unemployed for a period of 6 months after the end of the reimbursement period for costs incurred on social security contributions.

  • In the event of termination by the employer of an employment contract while being entitled to reimbursement of costs incurred for social security contributions or failure to meet the condition of maintaining a person in employment for a period of 6 months following the end of the refund, the employer is obliged to reimburse all funds received, together with statutory interest accrued from the total amount of funds received from the date of payment of the first refund, within 30 days from the date of delivery of the staroste's request.

  • In the case of maintaining employment of the referred unemployed person for the period of obtaining reimbursement of costs incurred on social security contributions and for at least 3 months after the expiry of the reimbursement period, the employer is obliged to reimburse 50% of the total amount referred to above.

  • In the event of termination of the employment contract by the referred unemployed person, termination of the employment contract pursuant to art. 52 of the Labor Code (termination of the contract under disciplinary procedure) or the expiry of the employment relationship of the referred unemployed during the reimbursement period or before the expiry of the 6-month period, the starost shall refer another unemployed person to the vacated job position.

  • In the event of a refusal to accept the unemployed person referred to the vacated position, the employer is obliged to return all funds received together with statutory interest calculated on the total amount of funds received from the date of payment of the first reimbursement of costs incurred for social insurance contributions, within 30 days from the date of delivery of the request from the starost. . If the employment office cannot refer the relevant unemployed person to the vacated position, the employer will not return the funds received for the period of employment of the referred unemployed person.

  • Reimbursement of the costs of social security contributions is granted in accordance with the conditions of admissibility of de minimis aid ”.

Employment voucher as an opportunity for professional activation of the unemployed up to 30 years of age

The employment voucher gives the employer a guarantee of receiving a part of the refund of employment costs and part of the cost of social security contributions. Pursuant to Art. 66m of the Employment Promotion Act “At the request of an unemployed person up to 30 years of age, the starost may grant an employment voucher.

  • The employment voucher is a guarantee for the employer that part of the costs of remuneration and social security contributions will be refunded in connection with the employment of an unemployed person who was awarded the voucher by the poviat labor office.

  • An employment voucher is awarded on the basis of an individual action plan.

  • The term of validity of the employment voucher is determined by the starost.

  • Under the employment voucher, the employer is obliged to employ the unemployed person for a period of 18 months.

  • The employment voucher is redeemed on the basis of an agreement concluded by the starost with the employer.

  • The staroste refunds the employer part of the costs of remuneration and social security contributions, for a period of 12 months, in the amount of the allowance referred to in art. 72 sec. 1 point 1 of the Employment Promotion Act (i.e. PLN 823.60 per month).

  • The employer is obliged to continue employing the referred unemployed for a period of 6 months after the end of the refund period. "

It is worth noting that the above Act provides that "If the employer fails to meet the obligation to employ an unemployed person for a period of 18 months, the employer shall return:

  • the amount of the refund received, together with statutory interest calculated from the date of receipt of the first refund, if the failure to fulfill the obligation occurred within 12 months from the date of employment of the unemployed person " (Article 66m (9) of the Employment Promotion Act).

In the event of termination of the employment contract by the referred unemployed person, termination of the employment contract pursuant to art. 52 of the Labor Code or the termination of the employment relationship of the referred unemployed, the employer does not return the refund received for the period of employment of the referred unemployed person (Article 66m (10) of the Employment Promotion Act).

The reimbursement referred to above constitutes aid granted in accordance with the conditions of admissibility of de minimis aid (Article 66m (11) of the Employment Promotion Act).

Benefits for the employer from employing the unemployed up to 30 years of age

For the employer, the employment voucher is a significant benefit because he receives a reimbursement of part of the costs of remuneration and social security contributions for employing an unemployed person up to 30 years of age. An employer should employ an unemployed person for 18 months. Employment costs are reimbursed for the first 12 months. Then the employer is obliged to hire the employee for 6 months, but will no longer receive any reimbursement.

The employment voucher is awarded by the starost, who indicates its expiry date. The employer and the staroste conclude an agreement in which they specify the obligation to employ an unemployed person for a specified period, the amount of reimbursement of costs and penalties for failure to meet the obligation to employ an employee for 18 months.

An employer selected by an unemployed person should employ him on the basis of an employment contract, appointment, appointment, selection and a cooperative employment contract. It is worth remembering that the above obligation will not be fulfilled if the employer employs an unemployed person on the basis of civil law contracts. Therefore, the employer should conclude an employment contract with an unemployed employee for a specified period of at least 18 months or 2-3 contracts that make up this period.

Example 1.

The unemployed person up to the age of 30 signed an employment contract for a trial period from January 1, 2017 to March 31, 2017, and then a fixed-term employment contract for 15 months from April 1, 2017 to June 30, 2018. however, remember that an employer cannot hire an unemployed person before concluding a contract with the employment office.

Penalties for early termination of the employment contract

The total period of employment of an unemployed person up to the age of 30 is at least 18 months. An employer who does not maintain employment of an employee covered by the refund during the first 12 months from the date of employment of the unemployed person will be obliged to return the amount of the refund received together with statutory interest calculated from the date of receiving the refund for the first month. In a situation where the employer does not meet the obligation to work within 6 months after the end of the 12-month reimbursement period, he should return the amount determined in proportion to the period in which he did not employ the employee, together with statutory interest accrued from the date of receipt of reimbursement for the first month. If the employment relationship ended earlier for reasons attributable to the employee, the employer does not have to reimburse the costs received for the period of employment. It concerns such situations as the termination of an employment contract by an unemployed person with notice, without notice due to the fault of the employee, as a result of the termination of the employment relationship due to the death of the employee.

It is worth emphasizing that "The starost may not conclude a contract with an employer with employment reduction for reasons relating to the workplace during the last 6 months prior to the submission of the application" (Article 150f of the Employment Promotion Act).

How much will the reimbursement of the costs of employing an unemployed person up to 30 years of age be reimbursed?

An employer who has decided to hire an unemployed person up to 30 years of age for a period of up to 12 months will receive a refund of part of the costs incurred for remuneration, bonuses and social security contributions in the amount specified in the contract, but not higher than the amount determined as the product of the number of employees referred unemployed persons in the month and the amount of the minimum remuneration for work applicable on the last day of employment of each accounted month and social security contributions from the reimbursed remuneration (Article 150f of the Employment Promotion Act).

Example 2.

The employer will receive a refund for the first 12 months of employment of an unemployed person up to the age of 30 in the amount of: PLN 2,000 + social security contributions from the refunded amount per person for one month, provided that the refunded remuneration amounts to a minimum of PLN 2,000 gross. The employer will be obliged to keep the employee in employment for the next 6 months.

How can an employer benefit from reimbursement for employing an unemployed person under 30?

In the first place, the employer should submit to the poviat labor office an application for concluding an agreement on reimbursement of the employer or entrepreneur for a period of 12 months of part of the costs incurred on remuneration, awards and social security contributions for unemployed persons up to 30 years of age. The employer should attach the information form provided when applying for de minimis aid, constituting an appendix to the regulation of the Council of Ministers of 24 November 2014 amending the regulation on the scope of information provided by the entity applying for de minimis aid (Journal of Laws of 2014, item 1543, as amended). Then the employer signs an agreement with the poviat labor office. Then the employer should conclude a fixed-term full-time employment contract with the referred unemployed person up to the age of 30 for a period of at least 18 months. The employer is entitled to a refund in the amount specified in the contract, but not higher than half of the minimum monthly wage, applicable on the date of the contract, for each employed unemployed person.

In conclusion, it is worth emphasizing that the above-described instrument on the labor market is beneficial for both employees and employers, who receive a guarantee of reimbursement of employment costs, while employees have the opportunity to gain professional experience.