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entrepreneurship8

Ministry of Economy, Labour

    and Social Policy

Policy Frame of Reference for

    Employment and Human Resources

    Development

Document adopted by the Council of Ministers

    on 23rd of December 2003

    Warsaw

Table of Contents:

     Page

Chapter I:

    Introduction……………………………………………………………………………….. 4 1.1. Aim of the document………………………………………………………………… 4 1.2. Formal basis………………………………………………………….……………… 4 1.3. Basis for drafting the document……………………………………………………… 4 1.4. Outline of the EU employment policy……………………………………………… 5 1.5. The policy fields of the European Social Fund……………………………………… 6 Chapter II: Government’s Human Resources Development Policy……………….... 7 2.1. National Strategy for Employment Growth and Human Resources Development 2000-

    2006…………………………………………………………………………………………7 2.1.1 Improving employability through developing the quality of human resources………….7 2.1.2. Developing entrepreneurship………………………………………………………. 8 2.1.3 Encouraging adaptability of businesses and their employees………………………. 8 2.1.4 Strengthening the policies for equal opportunities………………………………….. 9 2.2. Social and Economic Strategy: Entrepreneurship Development Work………….... 9 2.3. Directions of Government actions addressed to small and medium-sized enterprises until

    2002 and GoP actions addressed to small and medium-sized enterprises 20032006…….. 10 2.4. Joint Assessment Paper………………………………………………………………... 10 2.5 National Development Plan 2004-2006………………………………………………. 12 2.6 The coherence of the state human resources development policy with the newly adopted

    European Employment Strategy………………………………………………………….. 13 2.6.1. Active and preventive measures for the unemployed and inactive………………….. 13 2.6.2. Job creation and entrepreneurship…………………………………………………... 13 2.6.3. Address change and promote adaptability and mobility in the labour market……… 14 2.6.4. Promote development of human capital and lifelong learning……………………… 14 2.6.5. Increase labour supply and promote active ageing……………………………………14 2.6.6. Gender equality……………………………………………………………………… 14 2.6.7. Promote the integration of and combat the discrimination against people at a disadvan-

    tage in the labour market…………………………………………………………………… 15 2.6.8. Make work pay through incentives to enhance work attractiveness………………… 15 2.6.9. Transform undeclared work into regular employment……………………………… .15 2.6.10. Address regional employment disparities…………………………………………... 15 2.6.11 Good governance and partnership in the implementation of employment and human

    resources development policies…………………………………………………………… 16 Chapter III: Selected Priorities for Structural Funds support in the area of Employment

    and Human Resources Development………………………………………………….. 18 3.1. Summary outlook of the employment and labour market strategy in Poland………… 18 3.2 Outline of the NDP Operational Programmes………………………………………… 19 3.3. Sectoral Operational Programme Human Resources Development……………… 19 3.4. Sectoral Operational Programme Improvement of Competitiveness of Enterprises.. 22 3.5. Sectoral Operational Programme Restructuring and Modernisation of the Food Sector

    and Rural Development…………………………………………………………………….. 23 3.6. Sectoral Operational Programme Fisheries and Fish Processing………………...… 25 3.7. Sectoral Operational Programme Transport …………………………………….…. 25 3.8. Integrated Regional Development Operational Programme………………………….. 25 Policy Frame of Reference for Employment and Human Resources Development, MoELSP 2

Chapter IV: Consistency of the selected Priorities for Structural Funds support with

    the European Employment Strategy…………………………………………………….. 28 Chapter V: Consistency of the selected Priorities for Structural Funds support with the

    challenges of the Joint Inclusion Memorandum………………………………………… 30 5.1. Threat of permanent exclusion from the labour market……………………….………. 30 5.2. Tackling educational disadvantage……………………………………………………..31 5.3. Support for family solidarity, combating addictions, child abuse and domestic

     violence…………………………………………………………………………………... 31 5.4. Housing……………………………………………………………………………... 32 5.5. Access to quality services……………………………………………………………. 32 5.6. Social services……………………………………………………………………….. 33 5.7. Healthcare…………………………………………………………………………… 33 5.8. Transportation………………………………………………………………………. 34 5.9. Policy integration……………………………………………………………………. 34 5.10. Rehabilitation of areas of multiple deprivation……………………………………. 34

    Policy Frame of Reference for Employment and Human Resources Development, MoELSP 3

Chapter I: Introduction

    1.1. Aim of the document

    The Employment Policy Frame of Reference sets the overall policy context and the direction of

    assistance aimed at employment and human resources development in Poland, duly identifying

    the relationship with the priorities set out in the European Employment Strategy and the emerging

    Joint Inclusion Memorandum and also taking into account strategic national documents on labour

    market and social policy.

    The consistency with the European Employment Strategy is demonstrated by presenting the links

    to the Joint Assessment Paper (JAP) and the conclusions on the implementation of the JAP, as

    well as in relation to the new European Employment Guidelines. Thus, the Policy Frame of

    Reference provides the link between the human resources strategy selected for Structural Funds'

    support and the policy priorities of the European Employment Strategy translated in the JAP.

    1.2. Formal basis

    This Employment Policy Frame of Reference has been prepared in accordance with the guidelines

    set in Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general

    provisions on the Structural Funds (Dz. U. WE No L 161/1 of 26 June 1999). Furthermore, as the whole of Poland has been included as an Objective 1 region under the

    European financial instruments during 2004-2006, it will be possible to obtain support from all

    Structural Funds: the European Regional Development Fund (ERDF), the European Social Fund

    (ESF), the European Agricultural Guidance and Guarantee Fund (EAGGF) - Guidance

    Section, and the Financial Instrument for Fisheries Guidance (FIFG) as well as the Cohesion Fund.

    1.3. Basis for drafting the document

    This document has been drafted on the basis of the following:

    - National Strategy for Employment Growth and Human Resources Development 20002006

    (hereinafter referred to as the Strategy) adopted by the Government of Poland (GoP) in

    2000,

    - Joint Assessment Paper (hereinafter referred to as the Assessment) adopted by the

    Government of Poland and the European Commission in 2001, as well as subsequent

    conclusions on the implementation of the JAP priorities,

    - Social and Economic Strategy: Entrepreneurship Development Work adopted by GoP

    in 2002.

    - Draft of Social Policy Strategy 20022005,

    - Draft Joint Inclusion Memorandum, to be adopted on 18 December 2003,

    - Directions of GoP activities addressed to SMEs until 2002 adopted by GoP in 1999, and

    Directions of GoP activities addressed to SMEs 20032006 adopted by GoP in 2003. - National Development Plan 20042006 (NDP) adopted by GoP in 2003 and the

    Operational Programmes to implement the same.

    Policy Frame of Reference for Employment and Human Resources Development, MoELSP 4

1.4. Outline of the EU employment policy

    The EU co-ordination on employment is laid down in the Employment Title of the Amster-

    dam Treaty and it is an important part of the Community acquis. The Brussels European

    Council of March 2003 confirmed that the employment strategy has the leading role in the

    implementation of the employment and labour market objectives of the Lisbon strategy, and

    that the employment strategy and the broad economic policy guidelines, which provide the

    overarching economic policy coordination for the Community, should operate in a consistent

    way.

    The working method used for the European Employment Strategy is known as the "open

    method of co-ordination" and is based on five key principles: subsidiarity, convergence, man-agement by objectives, country surveillance and an integrated approach. The co-ordination of national employment policies at EU level stems from the commitment by Member States to

    establish a set of common objectives and targets for employment policy and is built around

    several components: Employment Guidelines, National Action Plans, Joint Employment Re-

    port and country specific recommendations.

    The Employment Guidelines represent a set of objectives which, until 2003, were grouped

    under four "pillars" (employability, entrepreneurship, adaptability, equal opportunities) to-gether with horizontal objectives.

    In January 2003, the European Commission presented a Communication on a revised Euro-

    pean strategy for full employment and better jobs for all with concrete objectives and targets. On 22 July 2003, the Council adopted guidelines for the employment policies of the Member

    States. The Council Decision 2003/578/EC(Dz. U. WE No L 197/13 of 5 August 2003), re-

    flecting the Lisbon agenda, highlights the three overarching objectives of:

    - full employment,

    - improving quality and productivity at work,

    - strengthening social cohesion and inclusion,

    and insists on a better delivery and governance of the EES. The Council adopted ten specific Employment Guidelines, with a new three-year perspective, which are priorities for action for the Member States in pursuit of the above mentioned three overarching objectives. The new

    Employment Guidelines encompass:

    1) Active and preventive measures for the unemployed and inactive;

    2) Job creation and entrepreneurship;

    3) Address change and promote adaptability and mobility in the labour market;

    4) Promote development of human capital and lifelong learning;

    5) Increase labour supply and promote active aging;

    6) Gender equality;

    7) Promote the integration of and combat the discrimination against people at a disadvantage

    in the labour market;

    8) Make work pay through incentives to enhance work attractiveness;

    9) Transform undeclared work into regular employment;

    10) Address regional employment disparities. Policy Frame of Reference for Employment and Human Resources Development, MoELSP 5

Equal opportunities and gender equality are emphasised as vital horizontal priorities for

    making progress towards the objectives. Good governance and the involvement of

    parliamentary bodies, social partners and other relevant actors in the implementation of the

    Employment Guidelines is also particularly stressed, while fully respecting national traditions

    and practice.

    Poland will fully exploit the potential contribution of the Structural Funds, in particular the

    European Social Fund, to support the delivery of policies and to strengthen the institutional

    capacity in the field of employment.

    1.5 The policy fields of the European Social Fund

    The European Social Fund(ESF) is the main Community financial instrument for the support of

    the European Employment Strategy. In addition to the General Structural Funds Regulation

    (Council Regulation (EC) No 1260/1999 of 21 June 1999), the detailed scope and provisions

    governing the assistance by the ESF are set in Regulation (EC) No 1784/1999 of 12 July 1999 on the European Social Fund (Dz. U. WE No L 213/5 of 13 August 1999).

    The ESF supports and complements the activities of the Member States directed towards

    developing the labour market and human resources in the following five policy fields:

    1. developing and promoting active labour market policies to combat and prevent

    unemployment, to prevent both women and men from moving into long-term unemployment,

    to facilitate the reintegration of the long-term unemployed into the labour market, and to

    support the occupational integration of young people and of persons returning to the labour

    market after a period of absence (“occupational revitalisation of the unemployed and persons

    threatened with unemployment”);

    2. promoting equal opportunities for all in accessing the labour market, with particular emphasis

    on those exposed to social exclusion (”preventing social exclusion”);

    3. promoting and improving of lifelong learning, including:

    a) vocational training,

    b) counselling, with a view to:

    - facilitating and improving access to, and integration into, the labour market,

    - improving and maintaining employability, and

    - job mobility;

    4. promoting a skilled, trained and adaptable workforce, innovation and adaptability in work

    organisation, developing entrepreneurship and conditions facilitating job creation, and

    enhancing skills and boosting human potential in research, science and technology (”improving

    human resources and developing entrepreneurship”); 5. specific measures to improve women’s access to and participation in the labour market,

    including their career development, their access to new job opportunities and to starting up of

    businesses, and to reduce vertical and horizontal segregation on the basis of sex in the labour

    market (“occupational revitalisation of women”). Policy Frame of Reference for Employment and Human Resources Development, MoELSP 6

Chapter II: The Government’s Human Resources Development

    Policy

The programme of human resources development is an integral element of the labour market

    policy pursued by GoP and aimed at increasing employment and reducing the social

    consequences of unemployment.

2.1. National Strategy for Employment Growth and Human Resources Development 2000-

    2006

    The Strategy sets the directions for actions to be undertaken to deal with the labour market

    challenges. The labour market policy as defined in the Strategy will be implemented through the

    national policy funded from domestic resources and the Operational Programmes under the

    National Development Plan, co-financed from the Structural Funds. The Strategy points to the

    need to improve the quality of human resources as a condition for finding and retaining jobs.

    Such improvement will be effected inter alia through the reform of the system of youth

    education, development of lifelong learning of adults and improving the qualifications of the

    unemployed. The objectives set in the Strategy are pursued under the four pillars as described

    below.

    2.1.1. Improving employability through development of human resources

    Increasing the qualification potential as one of the elements of shaping the national structural

    and development policy and improving employability are among the major objectives of the

    Government’s social and economic policy. The most significant directions in that area include:

    - reform of the system of education to match the labour market needs;

    - increased emphasis on creating better access to education for disabled persons;

    - introduction into education curricula, beginning with lower secondary schools

    (gymnasiums), of subjects related to the functioning of the economy, including themes

    connected with the labour market and job searching;

    - improvement of the quality of difficult youth’s education;

    - improvement of the quality of education for young people not included in the education

    system reform;

    - dissemination and improvement of the quality of lifelong learning;

    - improvement of qualifications of the unemployed;

    - enhancement of employment services;

    - development of non-public institutions providing labour market services (temporary

    placement agencies, personal counselling institutions, non-governmental job placement);

    - development of job placement services focusing on the identification of labour market

    needs, obtaining vacancies and managing them;

    - customised approach to clients (in the form of Individual Action Plans);

    - creation of publicly available vocational information and vocational counselling services;

    Policy Frame of Reference for Employment and Human Resources Development, MoELSP 7

    - creation of effective information flows about the system of education and labour demand

    forecasts;

    - reform of the social welfare system.

    2.1.2. Developing entrepreneurship

    The barriers to the development of small and medium-sized enterprises (SMEs), most

    frequently referred to, include the lack of correspondence between the taxation system and the specificity and rules of operation of SMEs (too high taxes included), difficult access to too-

    expensive loans and a limited range of guarantees, inconsistent laws regulating the operation

    of businesses, excessive legal and administrative regulation, as well as the lack of

    correspondence between regulations in all areas and the specificity and differences in the

    functioning of SMEs. Another barrier to the development of entrepreneurship is limited

    knowledge on the setting up and running of business. Furthermore, state aid to the SME sector

    is insufficient, too dispersed and unsystematic.

    The following activities have been defined in the Strategy as being of key importance:

    - change of the taxation system;

    - reduction of administrative barriers;

    - development of services to small and medium-sized enterprises implementing new

    technologies;

    - state support for business-environment institutions assuring access to knowledge; - enhancement of access to financing for SMEs;

    - promotion of entrepreneurship-related knowledge;

    - support for the development and co-ordination of regional and local institutions working

    for the business environment.

    2.1.3 Encouraging adaptability of businesses and their employees

    Encouraging adaptability of businesses and their employees, including the promotion of new

    innovative firms, flexible forms of employment and professional development of their

    employees constitute the necessary condition for improving the competitiveness of the

    economy.

    The implementation of the above priority means the need for the labour system to flexibly

    respond to economic challenges.

    The following activities are necessary:

    - increasing work flexibility;

    - reducing labour costs;

    - improving the mechanism of determining the minimum wages;

    - improving laws regulating employment relationship;

    - ensuring minimum work safety standards;

    - reviewing and analysing current legislation with a view to provide particular protection to

    employment;

    - increasing motivation to take up employment;

    Policy Frame of Reference for Employment and Human Resources Development, MoELSP 8

- introducing insurance system against unemployment;

    - providing a modern social dialogue formula;

    - pursuing a policy of support for training;

    - increasing geographical mobility of persons.

    2.1.4 Strengthening the policies for equal opportunities

    In accordance with the stipulations of the Strategy, the strengthening of the policies of equal opportunities will pertain to groups disadvantaged on the labour market: disabled persons,

    women, persons threatened with social exclusion, persons benefiting from social welfare

    allowances, such as long-term unemployed, and others.

    The following actions are necessary:

    - increasing the employability of the disabled; - elimination of discrimination against women; - pro-employment activities addressed to women. The substantive structure of the Strategy reflects the method, as recommended in the EU Member States, of identifying key problem areas the so-called pillars of national employment policies. The National Strategy for Employment Growth and Human Resources Development 2000-2006

    constitutes one of the six component strategies which served as the basis for the preparation

    of the National Development Plan 2004 2006. 2.2. Social and Economic Strategy: Entrepreneurship Development Work

    The document was adopted by the GoP in 2002, setting the following strategic objectives of

    the economic policy:

    - gradual restoration, over 2 years, of 5-percent GDP growth,

    - occupational revitalisation of the society and increase in employment,

    - effective absorption of European funds and using them for the country’s development.

    One of the objectives set in that document is occupational revitalisation of the society and

    increase in employment. The Social and Economic Strategy indicates an urgent need to invest in increasing the level of education and development of lifelong learning and in knowledge-based

    economy, in line with the requirements of the new economy. Human resources development

    actions are addressed in the first place to school graduates and include both modernisation

    of the system of education and extension of the training offered by labour offices.

    An integral element of the strategy is a package of actions aimed at helping graduates of

    schools of all types to take up their first jobs. The First Job programme aims at reducing unemployment among young people entering the labour market and preventing that group

    from moving into long-term unemployment at the very beginning of their careers.

    The Social and Economic Strategy provides for parallel actions addressed to former employees of restructured businesses and sectors, in particular to inhabitants of rural areas and

    areas of former state-owned farms.

    Policy Frame of Reference for Employment and Human Resources Development, MoELSP 9

2.3. Directions of Government actions addressed to small and medium-sized enterprises

    until 2002 and GoP actions addressed to small and medium-sized enterprises 2003

    2006

    The document Directions of Government actions addressed to small and medium-sized

    enterprises until 2002, adopted in May 2002, became the basis for all actions taken by GoP as addressed to small and medium-sized enterprises and for the allocation of budgetary funds to

    directly support entrepreneurs. The funds under the programme were allocated to enhance

    access for entrepreneurs to training in business resources management, marketing, IT use, and

    advice and training in the implementation of quality management systems. The funds financed

    basic information and advice on the starting up and running business operations offered free

    of charge to entrepreneurs and persons setting up their own businesses. Capital was also

    injected into loan guarantees and loan funds.

    The follow-up of that programme is the initiative entitled Directions of GoP actions

    addressed to small and medium-sized enterprises 20032006, adopted in February 2003.

    The Government’s policy towards small and medium-sized enterprises until 2006 is aimed at

    stimulating the economic activity of the SME sector to ensure employment therein and

    improve its competitiveness and ability to function on the Single European Market. The

    programme’s principal objective is realized via four targets: - support for SME development projects,

    - improvement of the SME legal and administrative environment and restoration of the

    entrepreneurial spirit in society,

    - development of the SME institutional environment,

    - support for the integration of businesses and their operation on the international forum.

    2.4 Joint Assessment Paper

    As a first step to define employment policies that prepare for membership of the Union and

    progressively adjust institutions and policies to the European Employment Strategy, and to

    allow the full implementation of the Employment Title of the Treaty as from accession, the

    Commission initiated in 1999 a co-operation process on employment with Poland. Further-

    more, co-operation also aimed at ensuring that the preparations for ESF implementation

    would focus on supporting the identified employment policy priorities. The "Joint Assessment

    Paper" (JAP) was signed with Poland in 2001. It was agreed to monitor the implementation of

    the JAP commitments and progress reports have been submitted by Poland in 2002 and 2003

    to this end. In addition, an in-depth review of the employment policies and JAP commitments

    took place in Poland in July 2003.

    The Joint Assessment Paper (JAP) made by the Government of Poland and the European Commission aims to examine the degree of Poland’s advancement in the adaptation of its

    labour market policy to the implementation of the European Employment Strategy.

    The JAP focuses on the principal challenges in the area of employment. Those challenges

    consist, in the first place, in recognising that the labour market should reflect the needs of

    a dynamic market economy that is part of the Single Market, in particular the need to have

    mobile, easily adaptable and qualified employees. Another challenge is the creation of the

    policy and having institutions in place that support the development of a flexible labour

    market. The JAP constitutes the basis for preparing reports on the implementation of Poland’s

    employment-oriented actions. In the following a presentation is made of the JAP priorities,

    Policy Frame of Reference for Employment and Human Resources Development, MoELSP 10

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