Flemish Region – New target group reduction for young people

A new Flemish target group reduction will take effect shortly for young people recruited in the Flemish Region. There are new amounts, a new period of application and new conditions, announced as of 1 July 2016 (starting date not final).

Two types of reductions

The Flemish reduction for young people is divided into two types:

1. a reduction for apprentices
2. a reduction for other young people with lower and middle education background

For which employers?

The Flemish reduction for young people is generally applicable, for all employers in the private sector. Starting from 1 July 2016, the reduction in the Flemish Region is no longer dependent on a required young people employment (3%/1.5%).

Reduction for apprentices

Conditions

The Flemish reduction for apprentices is connected to the following basic conditions:

1. employment takes place in an establishment unit in the Flemish Region
2. employment takes place through an agreement for alternance training that leads to the “apprentice” qualification in social security.

   We are not going into further detail about the underlying theory - in practice it concerns the following agreements: commercial apprenticeship agreement, controlled learning commitment, traineeship agreement in the context of training to become a company manager, industrial apprenticeship agreement, agreement for socio-professional insertion within the framework of secondary education with a reduced learning plan, an insertion or training agreement within the framework of part-time education

3. the alternance training agreement starts on 1 July 2016 at the earliest

There are no other conditions concerning age, educational background, unemployment status or wage level.

Basic amount and duration of application

The reduction amounts to €1,000.00 per quarter (basic amount) during the entire duration of the alternance training agreement. There is no age restriction.

The reduction does not end on 31 December of the year of the eighteenth birthday.

Alternance training agreement followed by normal employment contract

If the young person continues the alternance training agreement at the same employer, the reduction for young people with lower or middle education level can start to apply if the person involved meets the conditions. A new “recruitment” within four quarters is allowed, because the first employment was not an employment contract.

The reduction for young people with lower and middle education background

The reduction for young people with lower and middle education is aimed at young people with a normal employment contract, recruited before their 25th birthday.

Conditions employee

The Flemish reduction for young people with lower and middle education is connected to the following basic conditions:

1. employment takes place in an establishment unit in the Flemish Region
2. recruitment takes place on 1 July 2016 at the earliest
3. the employee is aged under 25 at the end of the recruitment quarter
4. employment takes place with a normal employment contract (i.e. not with a alternance training agreement)
5. the employee has a lower or middle educational background in accordance with the definition in Flanders
6. the educational background has been proven on time in the electronic files of the VDAB
7. the reference quarterly wage does not reach the maximum connected to this reduction

Education level

Lower educational background = not possessing one of the following diplomas or certificates:

• secondary education diploma;
• study certificate second year of third grade secondary education;
• an equivalent diploma or certificate (to be determined by the Flemish Government)

Middle educational background = at most possessing at least one of the following diplomas or certificates:

• secondary education diploma;
• study certificate second year of third grade secondary education;
• an equivalent diploma or certificate (to be determined by the Flemish Government)

The qualification at the end of the recruitment quarter is relevant - the young person must have a lower or middle educational background at that time. A higher diploma obtained during the period of employment does not stop the initial reduction from being used up.

Wage limit connected to this reduction

The employee’s wage must be below the following maximum amounts. The evaluation is based on the reference quarterly wage, composed as during the structural reduction.

Quarter	wage limit
recruitment quarter + 3 quarters	€7,500.00
following quarters	€8,100.00

Basic amount and number of quarters

age on the last day of the recruitment quarter	education level	Basic amount	number of quarters
< 25	lower educational background	€1,150.00	recruitment quarter + 7 quarters
middle level educational background	€1,000.00	recruitment quarter + 7 quarters

Successive recruitments

There is no new reduction if the recruitment occurs within four quarters after termination of the previous employment contract between the same employer/employee. If previous employment provided right to the reduction, it can be continued for the remaining quarters.

Certification of educational background by VDAB

The young person must have an electronic file at VDAB on the last day of the application quarter.

In practice, this is the so-called “career portfolio”, which has a broad application range in the context of career counselling by VDAB. Only VDAB certifies educational background to the RSZ; FOREM or ACTIRIS do not play a role in this.

Young people with a lower or middle educational background with residence outside the Flemish Region will have to create a career portfolio at VDAB in order to be entitled to the reduction in case of employment in the Flemish Region. This working method fits in with the logic of regionalisation, but in practice it is not very realistic. Therefore we must wait and see whether the (announced) cooperation agreement between the regions and the federal government will allow smoother implementation.

Updating the career portfolio

A diploma/certificate obtained in an institution of the Flemish Community is uploaded into the career portfolio automatically, via electronic data exchange with the LED (learning and experience certificates) database of the education of the Flemish Community. The young person does not need to take any initiative.

A diploma/certificate obtained at other institutions is not uploaded automatically. There is no exchange between the VDAB and a database of Walloon/Brussels education (if that exists). In that case, young persons must register at VDAB with their diploma details in order to have their career portfolios updated.

Sanction in case of late certification

Late completion of the electronic file leads to the target group reduction being reduced. The quarters of late completion are deducted from the eight application quarters.

Transition from federal to Flemish reduction on 1 July 2016

The Flemish reduction for young people is applied to recruitments starting from 1 July 2016. Starting from that date there is no more new influx in previous federal reductions for employment at an establishment unit in Flanders

The previous (federal) reductions continue to apply for recruitments until 30 June 2016 for the remaining number of quarters, but only until 31/12/2018 at the latest.

Sources: Decree of 4 March 2016 containing the Flemish target groups policy, Belgian Official Gazette 4 April 2016; Draft decision of the Flemish Government in implementation of the Decree of 4 March 2016 containing the Flemish target groups policy, approved in principle by the Flemish Government.

Author: Els Poelman

02/06/2016