National Training Fund in Poland

What is the initiative and where is it implemented (city or country)?

In Poland, the Krajowy Fundusz Szkoleniowy - KFS (National Training Fund - NTF) was launched in 2014 as part of the reform of labour market services. Employers can receive funding to cover up to 80% of the costs of training and educating employees, while micro-entrepreneurs are entitled to 100% of the costs. Employers can use the National Training Fund resources to finance the diagnosis of training needs, courses, postgraduate studies and examinations (UIL, 2016).

How was the initiative established? How was it implemented?

The NTF is one of the major funding sources for adult education in Poland. Supported by the Labour Fund, the NTF provides subsidies for employers.

Until 2014, the rules for creating training funds in enterprises were defined in the Act of 20 April 2004 on Employment Promotion and Labour Market Institutions, which allowed training to be co-financed using funds from the state’s Labour Fund. According to the reform in 2014, the Training Fund has been established to enable the Labour Fund to co-finance the cost of courses, post-graduate studies and exams of employees directly. The rules are contained in the Act of the Ministry of Labour and Social Policy of 14 May 2014 (OECD, 2019).

Which stakeholders are involved in the design and/or implementation of the initiative? Which sectors do they represent?

The National Training Fund is a multifaceted structure involving actors operating on national and local levels. The national and regional government is responsible for the legal framework and potential co-funding grants from national and local authorities. Employers or employee organizations create collective agreements with the Labour Fund on distribution of resources (Eurofound, 2020).

The Minister of Family, Labour and Social Policy sets priorities for 80% of the KFS budget. In 2019, these priorities included supporting adult learning to fill occupations experiencing skills shortages and supporting low-educated adults, disadvantaged groups, teachers and trainers in VET and people older than 45. The Labour Market Council sets priorities for the remaining 20% of the KFS budget. In 2019, these priorities included support for training employees of social integration centres and adults with disabilities and for using new technologies (OECD, 2019).

What are the impacts of the initiative in terms of facilitating lifelong learning? Who does it benefit and how?

The National Training Fund aims to support lifelong learning and continuous professional development of employees, benefiting both employees and employers.

At the request of the employer, the head of a district may grant NTF funds to cover the costs of continuing education and training of employees and the employer under an agreement. In the case of micro-enterprises, 100 per cent of the costs may be covered; 80 per cent in case of other enterprises. 300 per cent is the maximum level of co-funding per trainee (Eurydice, 2019).

According to the common opinion of Polish social partners, the amount of money allocated by the government to the National Training Fund is so small that it can only have a limited impact. For this reason, trade unions and employers' organizations - members of the Social Dialogue Council - protested jointly against the governmental approach in 2017 (Resolution No. 46 of 22 September 2017) (as cited in Eurofound, 2020).

There is no continuous measure for monitoring the results of the initiative. According to OECD recommendations (2019), the government should increase efforts to promote lifelong learning and professional development, including career guidance services and increased funding opportunities through NTF. The lack of government spending on the initiative as well as the complicated bureaucracy associated with accessing the funds has prevented the programme from becoming more efficient.

References:

European Foundation for the Improvement of Living and Working Conditions (Eurofound). 2020. Training Fund in Enterprises. [online] Available at: https://www.eurofound.europa.eu/observatories/emcc/erm/support-instrument/training-fund-in-enterprises [Accessed 31 August 2020].

Eurydice. 2019. Poland: Adult education and training funding. [online] Available at: https://eacea.ec.europa.eu/national-policies/eurydice/content/adult-education-and-training-funding-56_en [Accessed 31 August 2020].

OECD. 2019. OECD skills strategy Poland: Assessment and recommendations. [online]
Available at: https://www.oecd-ilibrary.org/sites/61333202-en/index.html?itemId=/content/component/61333202-en [Accessed 31 August 2020].

UIL. 2016. 3rd Global Report on Adult Learning and Education: The impact of adult learning and education on health and well-being, employment and the labour market, and social, civic and community life. [online] Available at: https://unesdoc.unesco.org/ark:/48223/pf0000245913 [Accessed 31 August 2020].