State contribution for training new employees

Recruiting and training new people costs a company both time and money. The state therefore offers various forms of support that can cover part of these costs. This area also touches on labour law, as the contributions come with specific conditions and obligations. For smaller companies, such support can be a significant help, but only if it is drawn correctly and with a clear view of all the commitments involved. Failing to meet the conditions can even lead to having to return the funds. In this article, we explain how the support works and what to watch out for.

What types of training support exist

Employment support takes several forms and is provided mainly by the Labour Office (ÚPSVaR) as part of active labour market measures. Some of the contributions are tied to hiring disadvantaged jobseekers or to creating new jobs.

• contributions to support job creation
• contributions for induction and training
• support for hiring disadvantaged jobseekers

Who can apply for the contribution

As a rule, support can be requested by an employer that meets the set conditions, for example one that has no arrears owed to the state and creates a job in accordance with the rules. The specific conditions differ according to the type of contribution and the current calls for applications, so they need to be checked before you submit an application.

How the application works

Obtaining a contribution usually involves several steps. It is important to prepare the documents in advance and follow the right order, because the application is generally submitted before the job is created.

• check the current call for applications and its conditions at the Labour Office
• prepare the application and the mandatory attachments
• conclude an agreement with the office before the employee starts
• meet the conditions and submit the expense statements

Obligations linked to the contribution

The provision of support comes with commitments, such as keeping the job for a set period or properly documenting the costs incurred. Failure to comply may result in an obligation to return the contribution. It is therefore important to monitor the conditions throughout the entire period for which the support is provided.

Links to labour law

The standard rules of labour law also apply when you draw support. The employee must be properly registered, an employment contract must be concluded with them and their wage entitlements must be respected. The combination of grant obligations and employment law obligations makes this area more demanding in terms of accuracy.

Accounting for and reporting the contribution

A contribution you receive is not just an HR matter, but also an accounting and tax matter. Funds from public sources must be correctly recorded in the accounts and reported, as they affect both the tax base and the treatment of eligible costs. The part of payroll costs covered by the contribution is assessed separately. At the same time, the company must keep separate records so that it can prove during an inspection which costs were paid from the contribution. The combination of labour law, payroll and accounting makes this an area where it pays to keep things in order from the start and not to leave the supporting documentation until the last moment before the final settlement.

How to use the support without risk

Training contributions can genuinely help a company, but only if the conditions are met rigorously. As calls for applications and the rules change regularly, always check the current conditions. Our specialists will help you coordinate your employment law and payroll administration so that you draw the support correctly, without the risk of having to return it and without unnecessary complications when you later settle up with the office.

Related articles: Non-compete clause in an employment contract, GDPR when processing employee data, Working time, breaks and attendance records.

Frequently asked questions

Who provides contributions for training new employees?

Support is provided mainly by the Labour Office as part of active labour market measures. Some of the contributions are tied to hiring disadvantaged jobseekers or to creating a new job. Check the current calls for applications and their conditions before submitting an application.

Can I lose the contribution if I do not meet the conditions?

Yes. The contribution usually comes with commitments, such as keeping the job for a certain period and properly documenting the costs. Failure to comply may result in an obligation to return the contribution. The conditions therefore need to be monitored throughout the entire period for which the support is provided.