How will the new program for the integration of young people in the labor market work for the first time

The terms and conditions of the new program “First Seal” that begins on January 1, 2022 specify a Joint Decision of the Ministers of Finance and Labor and Social Affairs, based on the regulation of Law 4855/2021.

The program – implemented by the Ministry of Labor and Social Affairs – aims to facilitate the first entry of young people into the labor market and the creation of new jobs in private sector companies. The subsidy provides incentives on the one hand for young people to look for the interested company that will hire them to receive the subsidy, and on the other hand to employers to create new jobs as wage costs will be reduced.

The program is open to young people aged 18-29 who do not have previous work experience in the private or public sector.

The main axes of the “First Seal” are the following:

Which jobs are subsidized and how

Each new job of indefinite or indefinite duration, created and included in this program, is subsidized for a period of six months as follows:

a) A new position with a full-time contract is subsidized with an amount of 1,200 euros, divided between employee and employer. In other words, the Ministry of Labor and Social Affairs pays 600 euros directly to the newly hired person, in six equal monthly installments, in addition to his salary and regardless of his amount. An amount of 600 euros is paid to the employer to cover part of the salary expense upon completion of the program.

b) The “First Badge” also refers to part-time jobs, as it is also addressed to students who seek to gain professional experience while studying. The new position with a part-time contract – which can not be less than 20 hours per week – is subsidized with 600 euros. The 300 euros are paid directly to the newly hired young person in six equal monthly installments and the remaining 300 are paid to the employer upon completion of the program.

c) If the fixed-term employment contract is less than six months, the new position is subsidized in proportion to the duration of the employment contract and according to the type of contract (part-time employment is subsidized at half the amount). In any case, the duration of the fixed-term employment contract may not be less than one month.

Young people who join the “First Badge” can not join the “COOPERATION” program and their employment contracts can not be suspended, unless the activity of the companies in which they are hired is suspended by order of a public authority.

Job retention clause

The jobs that are subsidized with the “First Badge” are additional in relation to the existing jobs. The employer is obliged to maintain on average the same number of employees as it had on 12 November 2021 (date of publication of the legislation for the program) for the subsidy period of the new job, increased by the number of new subsidized jobs according to the present program.

The control for the compliance with the obligation of keeping the jobs is carried out by PS ERGANI, through intersections with the data of AADE, OAED and e-EFKA. If it is concluded that the conditions are not met, the companies are deducted from the program and the grants that have already been paid are sought as unduly paid. In the event of a reduction of the employer, the beneficiary employee is not deducted from the program.

It is not allowed to replace the job of a subsidized employee under the program with a new subsidized employee. However, the company can apply for the approval of a new subsidized job.

Combined with the open program of 150,000 new jobs

For each new job created and included in the “First Seal” and the new employee’s employment contract lasts at least six months, the company, if it so wishes, can join for the same employee in the open program of new subsidized jobs of article 28 of Law 4726/2020 (A ‘181), as in force, with the terms and conditions provided therein. This is the program of 100,000 new jobs that was completed a few days ago and “opens” again on 1/1/2022, with the addition of 50,000 new jobs, as previously announced.

In this case, in addition to the subsidy hereof, the company is subsidized by the state budget for all employee and employer insurance contributions, regardless of the amount of the monthly salary, for a period of six months. It is emphasized that the job retention clause applies.

Application procedure – Receipt of a grant

For the inclusion of private sector companies in the “FIRST STAMP”, the following procedure is followed:

a) The company that wishes to make one or more new recruitments submits for each new separate electronic application in a special form entitled “Application – Responsible Declaration of company – employer joining the open program FIRST INSTRUCTION of the Ministry of Labor and Social Affairs”, in P .Σ. INSTRUMENTS, stating her details, the details of the young person she wants to hire, bank name and bank account number and that she will keep on average the same number of employees for the subsidy period of the new job, increased by the number of new subsidized employment contracts.

b) The data declared by the company and the conditions for inclusion in the program of the recruited young person are checked and cross-checked by the PS. INSTRUMENTS. In other words, it is checked that the potential beneficiary is 18-29 years old, and that he has no previous service. Businesses receive proof of approval or rejection of their application.

c) After the approval of the application of the company for inclusion of a potential beneficiary in the program, in order to complete its integration process, the company, on the same day or at the latest within the day after the approval of the application, proceeds to concluding an employment contract and hiring of the beneficiary, submitting the form E3: SINGLE RECRUITMENT ANNOUNCEMENT, where his participation in this program is declared in a special field. An approved application for which no recruitment has been submitted within the stipulated deadline, is considered as not being made.

In case the company wishes to include one or more beneficiaries in the program “First Seal” and the program of 150,000 new jobs, it submits for each new separate electronic application in a special form entitled “Application – Responsible Declaration of company – employer of parallel integration in the Open Program FIRST SEAL and in the Open Program of New Subsidized jobs of article 28 of law 4726/2020 of the Ministry of Labor and Social Affairs “, in PS ERGANI, according to the JM of that Program.

After the approval of the company’s application for inclusion of a potential beneficiary in both programs, in order to complete the process, the company, on the same day or at the latest within the next day after the approval of the applications, proceeds to concluding an employment contract and hiring the beneficiary. submitting the form E3: SINGLE RECRUITMENT ANNOUNCEMENT FORM, where his participation in the two programs is declared in a special field.

In any case, the company is obliged to immediately notify the beneficiary of its inclusion in the “FIRST SIGN” program or its parallel inclusion in both programs.

The new recruit, immediately after his / her recruitment, must submit an electronic application – responsible declaration of acceptance of his / her participation in the program of the present in a special form of APPENDIX I entitled “Application – Responsible Declaration of beneficiary for the open program” FIRST UNIVERSITY ” Of Social Affairs “at PS ERGANI, with which he declares, in addition to his personal data and the protocol number of his integration in the program (which are automatically drawn by PS ERGANI) and the bank and the bank account number (IBAN). In the case of its parallel integration in both programs, the same application is submitted.

Finally, it is noted that the number of new jobs created based on the “First Seal” covers part of the number of new subsidized jobs provided by the expansion of the open program of 100,000 new subsidized jobs by 50,000 jobs. The program is valid until the subsidized jobs are exhausted.