Regulations Regarding Implementation of the Specific Objective 8.5.1 "To Increase the Number of Qualified Students of Vocational Education and Training Institutions after Their Participation in Work-based Learning or Training Placements in Undertakings" of the Operational Programme "Growth and Employment"

Issued pursuant to
Section 20, Clauses 6 and 13 of the Law on Management
of European Union Structural Funds
and the Cohesion Fund for the 2014-2020 Programming Period

I. General Provisions

1. This Regulation prescribes:

1.1. the procedures for implementing the Specific Objective 8.5.1 "To Increase the Number of Qualified Students of Vocational Education and Training Institutions after Their Participation in Work-based Learning or Training Placements in Undertakings" of the Priority Axis "Education, Skills and Lifelong Learning" of the Operational Programme "Growth and Employment" (hereinafter - the specific support);

1.2. the specific objective;

1.3. the funding available to the specific support;

1.4. the requirements for a European Social Fund project (hereinafter - the project) applicant and co-operation partners of the project;

1.5. the conditions for the activities to be supported within the scope of the specific support and for eligibility of costs;

1.6. the conditions for unilateral notice of a contract regarding project implementation;

1.7. the provisions and procedures for application of simplified costs.

2. Terms used in this Regulation:

2.1. undertaking - a merchant, institution, association, foundation, natural person that has been registered as a performer of economic activity, and also an individual (family) undertaking, including an agricultural or fish farm, and other performers of economic activity;

2.2. educational institution - an educational institution which implements vocational secondary education programmes, providing the possibility to acquire a third level professional qualification and vocational basic education programmes, providing the possibility to acquire a second level professional qualification.

[4 July 2017]

3. The specific objective is to increase the number of qualified educatees of educational institutions after their participation in work-based learning or practical training and training placement through collaboration with an employer.

4. The target group of the specific objective is educatees of educational institutions who acquire vocational secondary education and vocational basic education programmes.

5. This Regulation shall not be applicable to the State professional educational institutions under subordination of the Ministry of the Interior and the Ministry of Defence and to the professional education programmes of the Fire Safety and Civil Protection College which are implemented based on an order of an undertaking, and also to educational programmes in which the professional qualification acquired conforms to the regulated profession in the field of health care according to the legal framework laying down the recognition of regulated professions and professional qualification.

[20 September 2016]

6. The total eligible funding intended for the specific support shall be equal to 21,937,153 euro, including the European Social Fund funding in the amount of 18,646,580 euro and State budget co-financing in the amount of 3,290,573 euro.

7. The total eligible funding available for project implementation shall be equal to 20,572,986 euro, including the European Social Fund funding in the amount of 17,487,038 euro and State budget co-financing in the amount of 3,085,948 euro. The output indicators shall be indicated in the project application in proportion to the funding available, concurrently ensuring achievement of the intermediate values specified in Sub-paragraph 12.1 of this Regulation.

[4 July 2017]

8. The total redirectable funding for implementation of the activities referred to in Sub-paragraphs 25.1 and 25.2 of this Regulation shall constitute at least 85 per cent of the total eligible funding available for project implementation.

9. The maximum eligible amount of the European Social Fund funding shall be 85 per cent of the total eligible funding within the scope of the project.

10. Costs which have incurred within the scope of the specific support shall be eligible not earlier than the day on which this Regulation comes into force, provided that they conform to the items of costs referred to in Paragraph 26 of this Regulation.

11. The maximum total sum of eligible costs of the specific support shall be at least 20,572,986 euro. From 1 January 2019 the responsible institution, based on a decision taken by the European Commission, may propose to increase the total sum of eligible costs defined in the specific support project up to 21,937,153 euro, taking into account the proportional division of the sources of funding referred to in Paragraph 6 of this Regulation.

12. Upon implementing the activities to be supported referred to in Paragraph 25 of this Regulation and upon achieving the following supervision indicators by 31 August 2023, the specific objective shall be achieved:

12.1. the outcome indicators:

12.1.1. the number of students involved in work-based learning or apprenticeship within the scope of the European Social Fund support - 3150, including 1260 by 31 December 2018;

12.1.2. the number of students who have participated in a training placement in an undertaking within the scope of the European Social Fund support - 11,025;

12.2. the outcome indicators:

12.2.1. the proportion of supported students who after participation in work-based learning or apprenticeship have obtained a document certifying the acquisition of a profession or qualification and are employed six months after the qualification process, constitutes 70-80 per cent of the total number of students;

12.2.2. the proportion of supported students who after training placement in undertakings have obtained a document certifying the acquisition of a profession or qualification and are employed six months after the qualification process, constitutes 70-73 per cent of the total number of students;

12.3. the financial indicator - certified expenditures in the amount of 6,581,145 euro by 31 December 2018.

13. The specific support shall be implemented in the form of restricted selection of project applications.

14. The specific support shall be implemented in one round of selecting project applications for the whole funding planned for the specific support.

15. The Ministry of Education and Science shall perform the functions of the responsible institution within the scope of the specific support.

II. Requirements for the Project Applicant and Co-operation Partner

16. The Employers' Confederation of Latvia shall be the project applicant. If the co-operation institution approves the project application and concludes a contract regarding project implementation, the project applicant shall also become the recipient of the European Social Fund funding.

17. In order to ensure successful project implementation, achievement of objectives and efficient and effective use of the funding granted to the project, the project applicant shall include information in the project application regarding the internal project management and control system, providing for a co-operation framework with co-operation partners and also including therein a description on what activities and supervision mechanisms are planned or introduced at the institution in the following processes:

17.1. planning and control of the flow of financial resources, separation of the accounting thereof in the accounting report of each co-operation partner, and ensuring credibility of financial statements;

17.2. organisation of procurements and participation of co-operation partners in their performance (if applicable);

17.3. drafting and submitting of project payment requests and project amendments, including completeness and compliance checks of data;

17.4. circulation of information, documents, and reports;

17.5. transparency of the substance management and supervision processes of the project.

18. The beneficiary shall implement the project in co-operation with the following co-operation partners:

18.1. educational institutions for implementation of the activities to be supported referred to in Sub-paragraphs 25.1 and 25.2 of this Regulation;

18.2. undertakings for implementation of the activities to be supported referred to in Sub-paragraphs 25.1 and 25.2 of this Regulation.

19. The co-operation partner specified in Paragraph 18 of this Regulation shall perform the activity to be supported referred to in Sub-paragraph 25.1 or 25.2 of this Regulation in accordance with the laws and regulations governing the implementation of the activity to be supported referred to in Sub-paragraph 25.1 or 25.2 of this Regulation.

20. The co-operation partners referred to in Sub-paragraph 18.2 of this Regulation shall become involved in the implementation of work-based learning and training placement and comply with the following requirements:

20.1. they have received a consent of an educational institution regarding the possibility to ensure the relevant implementation requirements of the vocational education programme;

20.2. according to the data at the disposal of the State Labour Inspectorate, they have not hired employees without an employment contract drawn up in written form for two consecutive years prior to concluding the co-operation contract.

21. The project applicant shall have the following obligations:

21.1. to substantiate in the project application the relevant choice of partners, specifying the involvement mechanism of the specific co-operation partners, the necessity thereof, clear selection criteria for co-operation partners in conformity with the conditions included in Paragraphs 19 and 20 of this Regulation and the compliance of the competence of co-operation partners with the planned activities to be supported, and also to conclude a co-operation contract regarding co-operation in implementing the activities to be supported with each co-operation partner. Information in accordance with the legal act regarding the procedures by which the institutions involved in the management of European Union Structural Funds and the Cohesion Fund shall ensure preparation of planning documents and introduction of such funds in the 2014-2020 programming period, and also at least the following conditions shall be included in the relevant co-operation contract:

21.1.1. the rights and obligations of the beneficiary and co-operation partner in implementing the specific support;

21.1.2. the payment order for implementing the activities to be supported referred to in Sub-paragraphs 25.1 and 25.2 of this Regulation and for covering of direct eligible costs, including the procedures by which information shall be provided to the relevant ministry to plan the State budget funds for implementing the activities to be supported referred to in Sub-paragraphs 25.1 and 25.2 of this Regulation, provided that the co-operation partner is a State budget institution;

21.1.3. the activities to be supported which are implemented by the co-operation partner and their extent, including funding for the implementation of activities to be supported;

21.1.4. the procedures and deadlines for submitting reports and other information;

21.2. to ensure that employment contracts are concluded with at least 15 per cent of the educatees during the period of training placement within the scope of the activity to be supported referred to in Sub-paragraph 25.1 of this Regulation;

21.3. to ensure 25,671 indicative involvement times of the educatees of educational institutions referred to in Sub-paragraph 18.1 of this Regulation involved in the project in implementation of the activity to be supported referred to in Sub-paragraph 25.2 of this Regulation.

22. Prior to conclusion of a co-operation contract with co-operation partners, the beneficiary shall coordinate the relevant draft co-operation contract with the responsible institution.

23. The project applicant shall prepare and submit to the co-operation institution a project application in conformity with the requirements of the by-laws for the selection of the specific support project applications.

24. The beneficiary shall be responsible for fulfilment of the obligations of the co-operation partner and functions implemented by the co-operation partner in the project, including avoiding the risk of double funding.

III. Activities to be Supported and Eligible Costs

25. The following activities shall be supported within the scope of the specific support:

25.1. implementation of work-based learning in the field of vocational education - at an undertaking and a craft master;

25.2. implementation of practical training and training placement in conformity with the qualification requirements at an undertaking or in co-operation with an entrepreneur in the field of acquisition of vocational secondary education or vocational basic education programmes;

25.3. project management and ensuring implementation thereof;

25.4. organisation of informative events for project co-operation partners;

25.5. information and publicity events regarding project implementation.

26. The following costs shall be eligible within the scope of the specific support:

26.1. direct eligible costs which are directly related to project implementation of the beneficiary and are necessary for achievement of results, and this connection is clearly comprehensible and provable;

26.2. indirect eligible costs which are not directly related to achievement of project results of the beneficiary, but support and ensure corresponding circumstances for implementation of the activities to be supported and achievement of results.

27. The direct eligible costs referred to in Sub-paragraph 26.1 of this Regulation shall include the following items of costs:

27.1. direct eligible personnel costs:

27.1.1. costs for remuneration of the project management personnel (except overtime hours) which conform to equivalent positions of the personnel remuneration costs of the beneficiary for implementation of the activities to be supported referred to in Sub-paragraphs 25.3, 25.4, and 25.5 of this Regulation;

27.1.2. costs for remuneration of the project implementation personnel (except overtime hours) which conform to equivalent positions of the personnel remuneration costs of the beneficiary for implementation of the activities to be supported referred to in Sub-paragraphs 25.1, 25.2, and 25.4 of this Regulation;

27.2. costs related to the purchase or rental of equipment, office furniture, and machinery, computer programs and licences necessary for the creation of new workplaces or renewal of current workplaces not exceeding the amount of 3000 euro per one workplace in the whole period of project implementation for implementation of the activity to be supported referred to in Sub-paragraph 25.3 of this Regulation. If the personnel is employed at normal working hours, the purchase or rental costs of equipment of the working place shall be eligible in the amount of 100 per cent. If the personnel is employed part-time or half-time, the purchase or rental costs of equipment of the working place shall be eligible in proportion to the distribution of the workload in percentage;

27.3. costs of inland journeys and work trips for the project management and implementation personnel in accordance with the laws and regulations laying down the procedures by which expenses related to official journeys shall be reimbursed, for implementation of the activities to be supported referred to in Sub-paragraphs 25.1, 25.2, 25.3, 25.4, and 25.5 of this Regulation;

27.4. transport costs which include payment for fuel, lease of vehicles, purchase of transportation services, use of public transport by the project management and implementation personnel for implementation of the activities to be supported referred to in Sub-paragraphs 25.1, 25.2, 25.3, 25.4, and 25.5 of this Regulation;

27.5. service (contract for work performance) costs for implementation of the activities to be supported referred to in Sub-paragraphs 25.1, 25.2, 25.3, and 25.4 of this Regulation. If the service provider is a natural person and it has not registered as a self-employed person at the State Revenue Service, the costs related to State compulsory social insurance contributions of the employer shall be also eligible;

27.6. costs related to preparation and publishing of informative and methodological materials for implementation of the activity to be supported referred to in Sub-paragraph 25.4 of this Regulation;

27.7. costs related to organisation and implementation of seminars, discussions, and conferences, including rental payment of premises, if it is necessary to rent premises for implementation of project activities of the beneficiary outside the legal and actual residence address of the beneficiary and costs for ensuring handout materials for implementation of the activity referred to in Sub-paragraph 25.4 of this Regulation;

27.8. costs of information and publicity events of the project in accordance with the laws and regulations laying down the procedures by which the requirements for communication and visual identity shall be ensured in introduction of the European Union Structural Funds and the Cohesion Fund in the 2014-2020 programming period, for implementation of the activity to be supported referred to in Sub-paragraph 25.5 of this Regulation;

27.9. funding for implementation of work-based learning:

27.9.1. costs necessary for implementation of the activity to be supported referred to in Sub-paragraph 25.1 of this Regulation ensured by the beneficiary to the educatee of the educational institution referred to in Sub-paragraph 18.1 of this Regulation involved in the project:

27.9.1.1. fixed costs: accident insurance costs, civil liability insurance costs, costs of personal protective equipment provided for in the laws and regulations regarding labour protection requirements upon using personal equipment, upon commencing work, vaccination costs, if necessary, and costs related to health examinations provided for in the laws and regulations regarding mandatory health examinations, not exceeding the total costs of 225 euro per one educatee involved in the project per one academic year;

27.9.1.2. variable costs: transport and accommodation compensation costs, provided that the monthly compensation does not exceed 70 euro per one educatee;

27.9.1.3. costs related to specialist support (ergotherapist, sign language interpreter, assistant) and special transport services provided, if necessary, due to the special needs of educatees of the educational institution referred to in Sub-paragraph 18.1 of this Regulation;

27.9.2. costs for implementation of the activity to be supported referred to in Sub-paragraph 25.1 of this Regulation ensured by the beneficiary to the undertaking involved in the project, not exceeding the total costs of 270 euro per one educatee involved in the project in conformity with the hours worked during the month until the moment of drawing up and coordinating the methodology for costs of one unit with the managing authority;

27.9.3. costs related to implementation of the activity to be supported referred to in Sub-paragraph 25.1 of this Regulation ensured by the beneficiary to the educational institution involved in the project for the collection and storage of documents supporting costs of the educatee of the abovementioned educational institution involved in the project, not exceeding the amount of 15 euro per one academic year until the moment of drawing up and coordinating the methodology for costs of one unit with the managing authority;

27.10. funding for implementation of training placement and practical training:

27.10.1. costs necessary for implementation of the activity to be supported referred to in Sub-paragraph 25.2 of this Regulation ensured by the beneficiary to the educatee of the educational institution referred to in Sub-paragraph 18.1 of this Regulation involved in the project:

27.10.1.1. fixed costs: accident insurance costs, civil liability insurance costs, costs of personal protective equipment provided for in the laws and regulations regarding labour protection requirements upon using personal equipment, upon commencing work, vaccination costs, if necessary, and costs related to health examinations provided for in the laws and regulations regarding mandatory health examinations, not exceeding the total costs of 225 euro per one educatee involved in the project per one academic year;

27.10.1.2. variable costs: transport and accommodation compensation costs, provided that the compensation does not exceed 80 euro per one academic year per one educatee;

27.10.1.3. costs related to specialist support (ergotherapist, sign language interpreter, assistant) and special transport services provided, if necessary, due to the special needs of educatees of the educational institution referred to in Sub-paragraph 18.1 of this Regulation;

27.10.2. costs for implementation of the activity to be supported referred to in Sub-paragraph 25.2 of this Regulation ensured by the beneficiary to the undertaking involved in the project, not exceeding the total costs of 95 euro per one educatee involved in the project per one academic year until the moment of drawing up and coordinating the methodology for costs of one unit with the managing authority;

27.10.3. costs related to implementation of the activity to be supported referred to in Sub-paragraph 25.2 of this Regulation ensured by the beneficiary to the educational institution involved in the project for the collection and storage of documents supporting costs of the educatee of the abovementioned educational institution involved in the project, not exceeding the amount of 15 euro per one academic year until the moment of drawing up and coordinating the methodology for costs of one unit with the managing authority.

28. The indirect eligible costs referred to in Sub-paragraph 26.2 of this Regulation shall be planned by the beneficiary as one item of costs, applying the single rate for indirect costs in the amount of 15 per cent from the direct eligible costs of personnel remuneration referred to in Sub-paragraph 27.1 of this Regulation which have incurred on the basis of an employment contract or an order regarding appointment.

29. In planning the employment contract costs referred to in Sub-paragraphs 27.1.1 and 27.1.2 of this Regulation, the beneficiary shall ensure that the project management and implementation personnel is employed full-time or part-time, or half-time in the amount of not less than 30 per cent from normal working hours, carrying out accounting of the working hours of the management and implementation personnel for the functions performed and time worked accordingly.

[4 July 2017]

30. Value added tax is eligible costs, if it cannot be recovered in accordance with the laws and regulations of the Republic of Latvia in the field of tax policy.

IV. Conditions for Implementation of Specific Support and Conditions for Unilateral Notice of Contract Regarding Project Implementation

31. The beneficiary shall implement the project from the day on which this Regulation comes into force, but not later than by 31 August 2023. The territory of the Republic of Latvia is the place of project implementation.

32. A co-operation partner which is a State budget institution, shall settle payments from the funds intended for project implementation in the budget of the relevant ministry according to the co-operation contract concluded with the beneficiary.

33. The co-operation institution shall reimburse eligible costs to the beneficiary for costs incurred due to project implementation, except the costs referred to in Sub-paragraphs 27.9 and 27.10 of this Regulation which have been caused by the co-operation partner which is a State budget institution.

34. If an advance payment is disbursed to the beneficiary during project implementation, the relevant payment may be disbursed in parts and the amount of one advance payment cannot exceed 30 per cent of the total amount of the European Social Fund funding granted to the project and State budget co-financing, except the payments referred to in Paragraph 32 of this Regulation. After a contract regarding project implementation is entered into, the beneficiary shall, on the basis of a written request of the beneficiary for an advance payment, ensure the advance payment to the beneficiary in accordance with the laws and regulations regarding planning of State budget funds for implementation of projects of the European Union Structural Funds and the Cohesion Fund and settlement of payments in the 2014-2020 programming period.

35. The total sum of advance and interim payments disbursed to the beneficiary may be 100 per cent of the European Social Fund funding granted to the project and, if it is provided for in the project, total sum of the State budget co-financing, except the payments referred to in Paragraph 32 of this Regulation.

36. In order to ensure supervision of the specific support implementation, the Ministry of Education and Science shall establish a project supervisory board by inviting therein representatives with voting rights from the National Centre for Education, Ministry of Welfare, Ministry of Economics, Ministry of Culture, Latvian Association of Local and Regional Governments, representatives with advisory rights from the Latvian Association of Large Cities, Latvian Chamber of Crafts, Latvian Chamber of Commerce and Industry, Free Trade Union Confederation of Latvia, representatives from planning regions, and also representatives from other associations and foundations whose activities relate to vocational education and involvement of undertakings in vocational education. Representatives of the beneficiary and also the Central Finance and Contracting Agency shall be included in the composition of the supervisory board of the project in the status of observers. The supervisory board of the project shall operate in accordance with the by-laws approved by the Ministry of Education and Science.

37. In implementing the project, the beneficiary shall ensure information and publicity measures as defined in Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006, and in the laws and regulations regarding the procedures by which the requirements for communication and visual identity shall be ensured in introduction of the European Union Structural Funds and the Cohesion Fund in the 2014-2020 programming period.

38. In implementing the project, the beneficiary shall ensure data collection regarding persons having received support within the scope of the project according to the data specified in the payment request form specified in the laws and regulations laying gown the procedures for performance of examinations of the projects implemented within the scope of the European Union Structural Funds and the Cohesion Funds for the 2014-2020 programming period and Annex 1 to Regulation (EU) No 1304/2013 of the European Parliament and of the Council of 17 December 2013 on the European Social Fund and repealing Council Regulation (EC) No 1081/2006 regarding compilation of the common output and result (including immediate result) indicators.

39. In implementing the project, the beneficiary shall additionally collect data on the following horizontal "Equal Opportunities" indicators:

39.1. persons who have been trained in the field of aspects of equal opportunities (gender equality, disability, age, or ethnic origin);

39.2. the number of educatees with special needs having received specific services (ergotherapist, sign language interpreter, assistant services, special transport services).

40. Upon request and for the needs of assessment, educational institutions involved in the project shall provide information on the results of acquisition of professional qualification of the educatees who have not received support within the scope of activities to be supported referred to in Sup-paragraphs 25.1 and 25.2 of this Regulation.

41. The beneficiary shall post the current information regarding project implementation on its website not less than once in three months.

42. The provisions laid down in the Public Procurement Law shall be conformed to upon concluding service (work performance) contracts regarding implementation of project activities. Integration of the environmental requirements in procurements (green public procurement) shall be supported.

43. In the event of rise in costs during project implementation, the beneficiary shall cover such costs at its own expense.

44. The beneficiary shall ensure the collection and updating of data on result-based indicators referred to in Sub-paragraph 12.2 of this Regulation.

45. The co-operation institution has the right to unilaterally withdraw from the contract regarding project implementation in any of the following cases:

45.1. the beneficiary does not fulfil the contract regarding project implementation which includes failure to conform to the deadlines specified in the project or other circumstances which negatively affect or may affect the achievement of the specific objective, its outcome indicators or supervision indicators, have set in;

45.2. in other cases stipulated in the contract regarding project implementation.

V. Closing Provision

46. Paragraph 35 of this Regulation shall come into force on 1 November 2016.

Prime Minister Māris Kučinskis

Acting for the Minister for Education and Science,
the Minister for Agriculture Jānis Dūklavs

Translation © 2017 Valsts valodas centrs (State Language Centre)