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Active employment policy of the Karlovy Vary Region

The enforcement of the active employment policy (AEP) follows Act No. 435/2004 Sb., on employment (ZoZ), Act No. 73/2011 Sb., on the Labor Office of the Czech Republic, Decrees No. 518/2004 Sb. and 519/2004 Sb. and Government Decree No. 515/2004 Sb., on material aid for the creation of jobs and on material aid for requalification or training of employees as part of investment incentives.

The AEP is a set of measures aimed at securing the maximum possible level of employment. The AEP is secured by the Ministry of Labor and Social Affairs  and individual labor offices; if the situation on the labor market so requires, they implement the policy in cooperation with other entities. 

Active employment policy measures within the power of local labor offices

In practice, labor offices implement primarily the following tools of the active employment policy that are financed from the state budget. The management of these specific-purpose funds is governed by Act No. 218/2000 Sb., on budgetary rules and on a change in certain related laws, as annotated:

• requalification
• investment incentives
• community service
• socially valuable jobs 
• subsidiary for induction training
• subsidy provided in case of a transition to a new business program

Consulting services and specific programs oriented on the solution of employment issues are integral parts of the active employment policy. 

Investment incentives

The Ministry of Labor and Social Affairs is responsible for two out of five investment incentives: aid for the creation of new jobs and aid for employee training and requalification. In general, the purpose of investment incentives is to promote high-tech production and import of capital. Investment incentives are specified in Act No. 72/2000 Sb. on investment incentives. The incentives administered by the Ministry of Labor and Social Affairs are further governed by Act.  No. 435/2004 Sb. on employment (Section 111).

A. Aid for the creation of new jobs

An amount of 50 000 CZK is provided for one job created in a district with an unemployment rate that is at least 50% higher than the average unemployment rate in the Czech Republic where applications are submitted to an organization specified according to Section 3 of Act No. 72/2000 Sb. on investment incentives (as per Government Decree No. 68/2008 Sb.).

B. Aid for employee requalification and training

• this aid is provided only in districts with an unemployment rate that is at least 50% higher than the average unemployment rate in the Czech Republic,
• this aid amounts to 25% of the cost spent on the requalification and training of employees,
• if, at the time of filing an application, the applicant is a small-size company, the aid amounts to 45%, if it is a medium-size company, it represents 35% of the cost spent on the requalification and training of employees,
• in case of the requalification and training of employees with a physical disability or disadvantaged persons pursuant to European Commission Regulation No. 800/2008 of 6 August 2008 the aid provided to large-size companies is 35%, to medium-size companies 45% and to small-size companies 55% of the cost spent on the requalification and training of employees.

Information on investment incentives and aid application forms are available on the official website of CzechInvest, an authorized organization.