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Since the elections of 26 May, all the new regional governments have been formed and the new coalition agreements presented. We have already published an Infoflash on the new policy announced in Brussels and Wallonia. Now, we deal with the new Flemish coalition agreement presented on 30 September, with a focus on measures for work and employment.
The labour market is under pressure due to the digital revolution, global competition, an ageing population, migration flows, etc., resulting in a growing mismatch between job offers and the profile of job-seekers. Policy of the new Flemish government will focus on closing this gap through two approaches: utilising labour potential and ensuring career security. The ambition is considerable: to create 120,000 additional jobs in the coming years and to increase the employment rate to 80%.
Starting in 2021 work will become more attractive via the Flemish job bonus, in particular through a net benefit of:
For part-time and/or partial employment, the basic amount (€600.00 or less) is calculated based on the hours worked.
The exact impact on payroll administration is still uncertain, but it is a regional Flemish measure, so the settlement will be done through taxation and exclusively for employees residing in Flanders.
From 2021 at the latest, the criterion of distance to the labour market will be essential for the allocation of Flemish reductions in employer contributions. The traditional target groups (young people, older people and people with a work-limiting disability) will not disappear, but the focus must shift to individual tailor-made reductions. In the meantime, existing reductions are being phased out, also and above all as a budgetary measure. A first step is to raise the age limit for the reduction for older workers from 55 to 58 years of age.
The Flemish recruitment incentive for long-term job-seekers is included in the reform of target group reductions and will probably disappear in the long term.
Social benefits become dependent on the level of income and no longer on social status. From this point of view, people in a low-paid job (possibly partial employment) can enjoy benefits that were previously reserved for benefit recipients.
In the same philosophy, access to government services will depend on competences and the distance to the labour market, and no longer on social status. In this way, for example, free or low-cost training courses, which until now have been reserved for job-seekers entitled to benefits, will be accessible to low-income workers.
The coalition agreement launches a new ‘solicitation’ activation policy tailored to the job-seeker, based on his or her individual distance to the labour market:
The labour reserve is expanded to include citizens of working age who are not working and who are not registered with the VDAB. A strategy is being developed to guide each target group of the labour reserve towards work.
Newcomers with employment prospects or who are eligible for integration come into a specific process, with compulsory registration with the VDAB within two months. Active cooperation in a path to work is made part of the integration programme.
Community service as established by the Flemish coalition agreement will be organised by the VDAB and local authorities. Once the latter is operational, the PWA (local employment agency) status will be incorporated into this as well.
For people on ZIV benefits (sickness and disability) there is a greater focus on gradual resumption of work:
The availability of part-time employees with an income guarantee allowance is monitored more closely, in particular for accepting additional hours at the same place of employment.
The old employment measures DAC (third employment circuit) and GESCO (subsidised contractual workers) will be phased out by 2030.
Additional jobs are created in the social economy, and two circuits are used:
Career security replaces job security, with a focus on lifelong learning. Job rotation is actively encouraged, as is the lending or sharing of employees between organisations.
Partners will be able to conclude IBO contracts (individual professional training) themselves, also within the temporary employment and service voucher sector.
Work-study programmes (‘dual learning’) will be rolled out further:
Efforts will continue towards a better combination of work and private life via:
Discrimination is combated through awareness-raising, self-regulation of the sectors and targeted controls by the social inspectorate. Practical tests are not provided.
The Government of Flanders will negotiate with the federal government to arrive at a single system of thematic leaves for Flanders, applicable in the public and private sectors.
In the terms of the coalition agreement, the VDAB becomes the “central, data-driven and results-oriented employment and career coordinator in Flanders”.
Deployment of the latest technologies such as artificial intelligence (AI), chatbots and blockchain should ensure the effectiveness of matching and career guidance. A few plans:
The VDAB’s ‘My Career’ tool will be the digital career platform of every Fleming and will serve as:
The VDAB’s services to employers will be technologically advanced, customer-oriented, personalised and administratively simple. A few key points:
The commitments set out in the coalition agreement are not specific in terms of content and timing, and here there is a need for adapted regulations.
Flanders is not homogeneously competent for a number of measures, for which the levers are at the federal level. Flanders is responsible for referral to the labour market, for example, but not for ‘employment’ as such. The implementation of various measures thus depends on federal policy and/or will be negotiated with the federal government.
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