April 27, 2024 5 min read
526/10/2018 – New program for subsidizing the first recruitment of employees by self-employed young people and youth businesses, up to 35 years old

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Published in the Government Gazette the J.M.D. with no. Eco. 526/10/2018 on the program for subsidizing the first recruitment of employees by self-employed young people and youth businesses, up to 35 years old.

The scheme provides a grant to self-employed young people and businesses of young people up to the age of 35, who do not employ and have not previously employed staff, for the first recruitment of unemployed people to full-time salaried jobs.

The OAED will subsidize 50% of the wage and non-wage costs of 20,000 new jobs in private enterprises and in Social and Solidarity Economy Organizations (SSE), which carry out regular economic activity.

The aim of the program is the creation of new salaried jobs through the enhancement of youth entrepreneurship.

Beneficiaries and beneficiaries of the Program for the subsidy of the first recruitment of employees

The Grant Programme is addressed to private enterprises and Social and Solidarity Economy Organisations that carry out regular economic activity.

The beneficiaries of the grant program are:

a. Individual entrepreneurs up to 35 years old, who do not employ and have not employed staff at any time in the past.

b. Businesses of any legal form, which do not employ and have not employed at any time in the past, staff, and in their corporate or share capital participate young people up to 35 years old, with a percentage of more than 50% (individually or cumulatively).

c. Social and Solidarity Economy (SSE) bodies, which do not employ and have not employed staff at any time in the past, and in which the majority of the shares, over 50% (individually or cumulatively), are held by young people up to 35 years old.

The limitation of the above paragraph does not apply, regarding the employment of personnel, in the case where the members of SSE are employed under an employment contract in the above bodies, when the first recruitment under this program concerns a beneficiary non-member of SSE.

In case the company wishes to create more than one job, it can be included for all the positions in the program, if it recruits the staff at the same time.

Conditions for participation

Beneficiaries may join the programme even if they participate or have participated in other enterprises of any legal form. Either as natural persons, or as legal entities, which employ or have previously employed staff, provided that their participation rate will be up to 50% (individually or cumulatively).

The following are not included:

a. Undertakings which employ or have employed staff in the past subject to the limitation of paragraph 1c hereof.

b. Individual entrepreneurs up to 35 years of age, as members of enterprises of any legal form, which have more than 50% of their share capital in their corporate or share capital, which employ or have previously employed staff.

c. Businesses of any legal form, which in their corporate or share capital participates as a member young person up to 35 years old with a percentage of more than 50%, which either a) as an individual entrepreneur, or b) as a member of another enterprise of any legal form, in which it participates as a member in its corporate or share capital with a percentage of more than 50%, employs or has employed staff in the past.

d. All enterprises, bodies, offices and organizations which are governed, as regards the recruitment of their staff, by the provisions of law. 2190/1994 (28 Α') and of Law No 3812/2009 (234 Α').

e. Branches or offices established in a country which is not a member of the European Union because it is not possible to control the cumulation of aid.

f. Offshore companies as well as companies whose corporate composition includes offshore companies because it is not possible to control the cumulation of aid.

G. Undertakings in respect of which recovery of previous State aid is pending.

H. Co-located enterprises or enterprises which in the place where the subsidized person will be employed (head office or branch) are co-located with another enterprise.

i.i. Companies operating in sectors to which Regulation 1407/2013 does not apply (article 1).
ii. Enterprises active in the fisheries sector (in primary fisheries and aquaculture).
iii. Enterprises active in the primary production of agricultural products (plant and animal).
iv. The nightclubs.
v. Businesses promoting products and providing services by telephone.
vi. Seasonal operations for seasonal staff.
vii. Businesses whose registered office is the employer's home (e.g. insurers, accountants, civil engineers, commercial agents, etc.). Excluded are companies that, due to the nature of their activity, employ staff outside the premises of their headquarters (truck operating services, taxi operating services, plumbers, electricians).

Where the object of work of an enterprise is complex and one of the objects is excluded from the programme, as referred to in subparagraphs (i) to (i) to death, the enterprise must, in order to join, submit a solemn declaration stating that the subsidized person will not be employed in the excluded object of work in cases of thi to mortal.

Beneficiaries of the Program for the subsidy of the first recruitment of employees are:

Unemployed persons aged 18 years and over, registered in the unemployment register of OAED for a period of at least three (3) months before their nomination by the competent FMC2.

The unemployed beneficiaries, upon their nomination by the competent FMC2, must:
a. Have completed the standard personalised approach form and agreed on an individual action plan.
b. Be Greek citizens or citizens of another EU member state or be expatriates who have the right of residence and employment in our country or third-country nationals who have a residence permit for dependent work at least for the duration of the program.

Exceptions:

The program for subsidizing the first recruitment of employees does not include businesses, for people who:

i. will be employed exclusively, from the 22nd hour in the evening (start of working hours) until the 6th morning (end of working hours),
ii. are partners in O.E., E.E., Ltd. and P.C.C.,
iii. are members of the BoDs in S.A.,
iv. are the legal representatives or managers of the enterprises (except the members of the Social and Solidarity Economy Organizations (SSE) regardless of their participation or not in the Board of Directors].
v. are members of cooperatives (except for members of Social and Solidarity Economy Organizations - SSE),
vi. they are necessarily placed with the provisions of n. 2643/1998,
vii. they will be employed in the context of the company's integration into any other aid scheme to cover its relevant contractual obligations, e.g. an investment project, which also subsidizes the wage and/or non-wage costs for these persons;
viii. will be employed by the beneficiary employers in order to make their services available to another employer (secondary or indirect employer),
ix. will be employed on a paid mandate.

The beneficiaries of the program must not have been employed, during the last twelve months before the date of submission of the electronic application for inclusion by the beneficiaries, in businesses, of any legal form, in which the beneficiaries participate or participated. Either as natural persons or as legal entities, with a participation rate of up to 50% (individually or cumulatively).

Duration

The duration of the total program is eighteen (18) months for the recruitment of unemployed people up to 29 years old and twelve (12) months for the recruitment of unemployed people aged 30 years and over.

Amount for grant

The amount of the grant is defined as 50% of the monthly salary and non-salary costs of the beneficiary with a maximum of 500 euros per month.

For each day of employment of less than 25 days, the above monthly subsidy amount, as adjusted each time, is reduced by 1/25.

Wage and non-wage costs include total gross actual monthly earnings and insurance contributions borne by the employer, as well as Christmas and Easter gifts and leave allowance.

After the publication of the call for expression of interest, businesses wishing to join the program, if there are vacancies, submit electronically an application for inclusion - a solemn declaration, which is posted on the OAED website.

Branches or offices established in a Member State of the European Union submit the online application to the FMC2 under whose jurisdiction the branch or office belongs.

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