Government and social partners agree on ‘entry agreements’
The Government and the social partners have agreed that ‘entry agreements’ should be introduced. The aim is to help newly arrived immigrants and long-term unemployed people to become established in the labour market, and to facilitate future skills provision for employers.
Despite a strong labour market, far too many people have a hard time finding work. Strengthening paths to work and improving matching in the labour market are high-priority for the Government. Everyone who can work should work and contribute to our common welfare. The Government, the Swedish Trade Union Confederation (LO), the Confederation of Swedish Enterprise and Unionen agree that entry agreements should be introduced.
– We can better cope with major social challenges if we take joint responsibility. The social partners have an important role to play in ending long-term unemployment and the successful introduction and integration of the large group of newly arrived immigrants. With these entry agreements, the social partners are stepping up and taking responsibility, says Minister for Employment and Integration Ylva Johansson.
The intention is to give people opportunities to acquire knowledge and experience that is sought-after in the labour market. The employee will be given the opportunity to take part in Swedish for Immigrants and other short training courses as agreed on by the employer and the employee. Funds will be available for adult vocational places on training courses that are relevant to both parties. An entry agreement should generally be able to lead to a permanent, full-time position with the employer.
Entry agreements are a completely new model to stimulate employment for newly arrived immigrants and long-term unemployed people. The employer's total payroll expenses will be limited and the person will receive an individual state benefit for no more than two years. The size of the individual benefit will provide an incentive for people to obtain regular employment.
– The Swedish model is built on strong and responsible partners in the labour market. The partners have a far-reaching responsibility to regulate salaries and conditions. The fact that the partners have taken the initiative together for entry agreements demonstrates the strength of the Swedish model, says Ms Johansson.
The Government will now draft a proposal on the design of the benefit to the individuals with entry agreements and notify it to the European Commission in the summer of 2018. Also draft proposals for necessary legislative amendments and refer them for consultation in the summer of 2018, in order to submit a government bill to the Riksdag in March 2019. Arbetsförmedlingen (the Swedish Public Employment Service), together with the social partners, will soon be tasked with analysing the conditions for a model for procured matching for entry agreements, and examining its design. The aim is that external actors will provide the major part of the matching for entry agreements. The Government and the social partners will also jointly review measures so that Swedish for Immigrants and other regular training courses, and also validation, can supplement entry agreements. The ambition of the Government and the social partners is to introduce entry agreements during the second half of 2019.
If entry agreements are introduced in 2019, an employer's total payroll expenses for a position of this kind will be SEK 8 400 per month. The individual state benefit will be at most SEK 9 870 per month. The social partners and the Government intend to work together to ensure that when fully implemented, the initiative will cover at least 10 000 individuals.