Explanatory Memorandum to COM(2024)133 - - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2024)133 - . |
|---|---|
| source | COM(2024)133 |
| date | 20-03-2024 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
In her Political Guidelines (1), President von der Leyen stressed the need to strengthen Europe’s social market economy and to foster “growth which creates quality jobs, especially for young people”.
Youth unemployment remains a persistent challenge in the EU, with the youth unemployment rate being more than twice as high as the overall unemployment rate (2). A particular challenge lies in activating more young people who are not in employment, education or training (NEETs) and who face specific obstacles that hinder their participation in the labour market. Therefore, the European Pillar of Social Rights Action Plan (3) sets out the target of decreasing the rate of young people aged 15-29 who are NEETs from 12.6% (2019) to 9% by 2030 by improving their employment prospects.
Traineeships can provide an opportunity for young people to gain practical and professional experience, improve their skills and thereby facilitate their access to the labour market. They offer an opportunity for employers to attract, train and retain their staff. However, the value of a traineeship depends on its quality. A quality traineeship requires fair and transparent working conditions and adequate learning content. Moreover, inclusive traineeships can help provide opportunities for everyone to access the labour market, including young people in vulnerable situations.
According to estimations based on the European Labour Force Survey (EU-LFS) data, there are 3.1 million trainees in the EU (2019 data) out of which 1.6 million are paid trainees and 1.5 million are unpaid. An increasing number of trainees in the EU participate in cross-border traineeships (21% of trainees in 2023 compared to 9% in 2013) (4), demonstrating the potential of traineeships to contribute to fair labour mobility in the EU. Estimates also indicate that in 2019 around 370 000 paid trainees (5) did a traineeship of a long duration (more than 6 months), including consecutive/repeated ones with the same employer. Out of these, around 100 000 trainees did a traineeship of a long duration with poor learning content (6).
The 2014 Council Recommendation on a Quality Framework for Traineeships (QFT) is an important reference point for determining what constitutes a quality traineeship. It sets out guidelines for traineeships outside education curricula and mandatory professional training.
In its 2023 evaluation of this Council Recommendation (7), the Commission found indications that the QFT had a positive impact on the quality of traineeships in the EU. It also confirmed that traineeships continue to be an important pathway for young people to enter the labour market. In addition, quality traineeships can be useful upskilling and/or reskilling opportunities for people of any age to acquire practical skills on the job to set their career in a new direction.
However, the evaluation also highlighted areas that could be further strengthened and improved. For instance, it recommended better integrating quality principles in national legislation, in particular for open-market traineeships (OMTs), stronger monitoring and enforcement to ensure the application of the quality principles on the ground and increasing awareness amongst various key stakeholders. The need for stronger support to employers, for example, through financial support and practical guidance, was also highlighted. Furthermore, the evaluation stressed that efforts to provide more concrete and practical information to young people on cross-border traineeships should be stepped up. It also identified additional quality criteria, such as fair pay and social protection, rules on remote/hybrid traineeships, better addressing the needs of groups in vulnerable situations, and strengthened support to trainees during and after the traineeship. Moreover, the evaluation noted the possibility of extending the scope of QFT from OMTs and traineeships that are part of active labour market policies (ALMP) to also cover other traineeships, such as those that are part of formal education and training curricula.
Contents
- The report on the final outcome of the Conference on the Future of Europe (8) includes the call to ensure that young people’s traineeships and jobs comply with quality standards, including on pay, and that unpaid internships on the labour market and outside formal education are banned through a legal instrument.
- In its Opinion “The Equal Treatment of Young People in the Labour Market” of 15 June 2023 (9), the European Economic and Social Committee (EESC) noted that traineeships should offer good quality learning content and adequate working conditions, and should not be a substitute for regular jobs or a precondition for a job placement.
- In its Opinion “Youth Employment Support: a Bridge to Jobs for the Next Generation Reinforcing the Youth Guarantee” of 5 February 2021 (10), the Committee of the Regions considered that traineeships and apprenticeships should primarily provide a learning experience for young people, which can help them to decide on their future career and to develop their skills in order to access permanent employment.
In particular, the European Parliament adopted on 14 June 2023 a resolution based on Article 225 TFEU (11) calling on the Commission to update and strengthen the 2014 Council Recommendation and to turn it into a stronger legislative instrument. It also called on the Commission to ensure minimum quality standards for traineeships, including pay.
In this context, the Commission announced an update of the Quality Framework for Traineeships in its 2023 Commission Work Programme (12), to address issues including fair pay and access to social protection, as part of its engagement to implement the European Pillar of Social Rights Action Plan and to reach the EU’s 2030 targets in the areas of employment, skills, and poverty reduction.
The proposed recommendation aims to improve the quality of traineeships, in particular as regards learning and training content and working conditions, with the aim of easing the transition from education, unemployment or inactivity to work. It applies to all trainees, regardless of their employment status. It applies to trainees who are workers only insofar and to the extent that equivalent or more favourable provisions are not laid down in EU law.
As for types of traineeships, the proposed recommendation extends the scope of the 2014 Recommendation (covering open-market traineeships and traineeships that are part of active labour market policies) to cover also traineeships that are part of curricula of formal education and training and those of which their completion is mandatory to access a specific profession (e.g., medicine, architecture, etc.).
This proposal is based on the findings of the evaluation of the 2014 Council Recommendation, the European Parliament’s resolution, the views gathered through the consultation of social partners at EU level in line with Article 154 of the Treaty on the Functioning of the European Union (TFEU), the views raised by other stakeholders, evidence collected through the study supporting the initiative on quality traineeships (13) and the Eurobarometer survey mentioned above.
Alongside the proposed updated recommendation, the Commission also proposes a directive (COM(2024) 132) focused on supporting Member States in improving and enforcing the working conditions of trainees who are workers and in combating regular employment relationships disguised as traineeships. The proposed directive applies to trainees in the EU who have an employment contract or employment relationship as set out in the law, collective agreements or practices in force in the Member States, and that are in line with consideration to the case-law of the Court of Justice of the European Union.
• Consistency with existing policy provisions in the policy area
As part of the European Year of Skills, the EU has set out to promote a mindset where upskilling and reskilling are the norm. Closing skills gaps and addressing skills mismatches across the EU will boost competitiveness, in particular of micro, small and medium-sized enterprises by better matching employers’ needs with peoples’ skills and aspirations. Equal access to skills development and work-based learning will help reduce inequalities, notably by empowering people to fully participate in the economy and society. The European Year of Skills follows the European Year of Youth, which emphasised the need to provide further impetus to the creation of quality employment opportunities for young people in line with the eleven youth goals of the 2019-2027 EU Youth Strategy (14). In its Communication on the European Year of Youth 2022, the Commission committed to updating its quality framework for traineeships in 2024 to address issues including fair pay and access to social protection (15).
The Commission’s Youth Employment Support package (16) of July 2020 proposed Recommendations on a Bridge to jobs - reinforcing the Youth Guarantee (17) and a modernised European framework for vocational education and training, both of which the Council adopted (18). The former specifically recommends that traineeship offers comply with the minimum standards laid out in the QFT. The latter sets out key principles for ensuring that vocational education and training adapts swiftly to labour market needs and provides quality learning opportunities for young people and adults. It places a strong emphasis on better opportunities for work-based learning and improved quality assurance.
In a similar way to traineeships, apprenticeships are an important pathway to facilitate transitions to the labour market. The Youth Employment Support package gave a renewed impetus to apprenticeships, including through the European Alliance for Apprenticeships (19).
These initiatives aimed to improve the quality and effectiveness of the EU’s measures to promote youth employment and are supported by EU funding. They implement amongst others the first and the fourth principle of the European Pillar of Social Rights. These principles lay down the right to ‘quality and inclusive education, training and life-long learning’ and the right of young people to ‘continued education, apprenticeship, traineeship or a job offer of good standing within four months of becoming unemployed or leaving education’.
- Directive (EU) 2019/1152 on transparent and predictable working conditions by aiming to improve the transparency of information provided (in writing) to trainees.
- The Occupational Health and Safety (OSH) Framework Directive (20) that lays down the main principles for encouraging improvements in the health and safety at work. It guarantees minimum safety and health requirements throughout the EU. The Framework Directive confirms that, as regards a secure workplace, the same rules apply to workers and trainees and is accompanied by further directives focusing on specific aspects of safety and health at work.
- The Council Recommendation on access to social protection for workers and the self-employed (21) recommends Member States to ensure that both workers (including trainees who are workers) and the self-employed have access to effective and adequate social protection. This Recommendation covers unemployment, sickness and health care, maternity and paternity, invalidity, old-age and survivors’ benefits and benefits in respect of accidents at work and occupational diseases. While making reference to this Recommendation, the proposed recommendation will encourage ensuring access to adequate social protection for all trainees, in line with national legislation.
- The Council Directive establishing a general framework for equal treatment in employment and occupation (22) lays down a general framework for combating discrimination on the grounds of religion or belief, disability, age or sexual orientation as regards employment and occupation, with a view to putting into effect in the Member States the principle of equal treatment.
The objectives of the proposed recommendation on equal opportunities and the inclusion of groups in vulnerable situations, including persons with disabilities, are in line with the EU Charter of Fundamental Rights, with principles 3 and 17 of the European Pillar of Social Rights, and the 2021-2030 Strategy for the Rights of Persons with disabilities.
The proposed recommendation can also help contribute to address the employment objective of the EU Roma strategic framework 2020-2030 (23) to ensure that by 2030, the gap in Roma NEET rate is cut by at least half. It is consistent with the Council Recommendation on Roma equality, inclusion and participation (24), in particular under its chapter 8 on access to quality and sustainable employment for Roma.
The proposed measures facilitating cross-border mobility are in line with the objectives of the Erasmus+ programme, which offers transnational and international learning mobility opportunities, including for trainees.
Moreover, the proposed recommendation is consistent with the Council Recommendation of 15 March 2018 on a European Framework for Quality and Effective Apprenticeships (25), which sets out 14 key criteria to define quality and effective apprenticeships, ensuring both the development of job-related skills and the personal development of apprentices. According to this Recommendation, apprenticeships are formal VET schemes that combine learning in education or training institutions with substantial work-based learning in companies and other workplaces. They lead to nationally recognised qualifications, are based on an agreement defining the rights and obligations of the apprentice, the employer and, where appropriate, the vocational education and training institution, and with the apprentice being paid or otherwise compensated for the work-based component. Apprenticeships refer to full programmes leading to a qualification, where apprentices ideally spend at least half of the apprenticeship at the workplace. By contrast, traineeships that are part of formal education and training curricula refer to a limited work-based learning experience embedded in an education and training programme. Hence, apprenticeships tend to be longer than traineeships. As traineeships and apprenticeships vary significantly across Member States, Member States are encouraged to assess which of the two quality frameworks applies to VET work-based learning experiences, depending on their national and regional specific features. To ensure that all learners in work-based learning receive the highest level of protection, Member States are encouraged to apply the framework conditions which are more protective among the two frameworks, in line with national circumstances.
Furthermore, the proposed recommendation addresses the views of the European Court of Auditors. The Court noted in its review, ‘EU actions addressing traineeships for young people’ (26), that EU guidance on quality traineeships is not applied consistently by Member States and that there may be unequal opportunities for traineeships and the access to them.
• Consistency with other Union policies
The proposal is consistent with recent EU policies that aim at empowering people through education, training and skills. The European Skills Agenda (27) seeks to strengthen the EU’s sustainable competitiveness, ensure social fairness and support young people’s resilience.
The proposal is also consistent with the proposal for a Council Recommendation ‘Europe on the Move’ – learning mobility opportunities for everyone of 15 November 2023 (28). This aims at making learning opportunities across the EU more accessible for all young people, including young people with fewer opportunities, such as persons with disabilities. It also promotes the attractiveness of the EU as a learning destination for talents from outside the EU.
Financial investments in upskilling and reskilling are at the heart of the European Social Fund Plus (ESF+), the Recovery and Resilience Facility (RRF), the Just Transition Fund and Erasmus+ and the Digital Europe Programme. Skills development is also supported by the European Regional Development Fund (ERDF) investments in education and training infrastructure and equipment. The proposed recommendation reflects the objectives of the ESF+ that support Member States and regions in their endeavours to ensure equal access to training and skills development opportunities and increase the employability of the European workforce, in particular young people. It supports the objectives of the RRF, in particular its pillars on policies for the next generation. The proposed recommendation is also in line with the aim of the Just Transition Fund to support a fair transition towards a climate-neutral economy, focusing on the most affected regions.
Furthermore, its objectives are consistent with those of the ALMA (Aim, Learn, Master, Achieve) initiative, which is funded by the ESF+ and aims to help disadvantaged young people not in employment, education or training (NEETs) integrate into society by easing their way back into education, training or employment. The Technical Support Instrument offers Member States, upon request, tailor-made expertise to reform and improve learning mobility, particularly through Flagship initiatives focusing on attracting talent, youth education and skills. Finding skilled staff is a challenge for an increasing number of small and medium enterprises (SMEs), which is also highlighted in the SME Strategy for a sustainable and digital Europe (29). The Strategy stresses that the EU can further help address these challenges, facilitating access to training and helping match SMEs’ demand for talents with labour market supply. The proposal will complement this approach. The proposal also is consistent with the Net-Zero Industry Act, in particular the proposed setting up of European skills academies, by contributing to a skilled workforce through quality traineeships that can help address skills shortages and mismatches. This should alleviate the net-zero technology industries’ need for skills.
This initiative is also one of the actions set out in the Commission’s action plan on skills and labour shortages in the EU (30).
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The proposal is based on Articles 153(1)(b), 165 i, 166 i and 292 TFEU.
Under Article 153(1)(b) TFEU, the EU must support and complement Member States’ activities in the field of working conditions.
Under Article 165 TFEU, the EU must contribute to the development of quality education by encouraging cooperation between Member States and, if necessary, by supporting and supplementing their action, while fully respecting the responsibility of the Member States for the content of teaching and the organisation of education systems and their cultural and linguistic diversity. Under paragraph 4 of Article 165 TFEU, harmonisation of the laws and regulations of the Member States is excluded, while the Council, on a proposal from the Commission, can adopt recommendations.
Under Article 166 TFEU, the EU must implement a vocational training policy that supports and supplements the action of the Member States, while fully respecting the responsibility of the Member States for the content and organisation of vocational training. Under paragraph 4 of Article 166 TFEU, harmonisation of the laws and regulations of the Member States is excluded, while the Council, on a proposal from the Commission, can adopt recommendations.
Under Article 292 TFEU, the Council can adopt recommendations on the basis of a Commission proposal in areas under EU competence.
• Subsidiarity (for non-exclusive competence)
In its work towards the development of quality education and training and the implementation of a vocational training policy, the EU is responsible for encouraging cooperation between Member States, supporting and supplementing their action where necessary. In this context, setting out a common understanding of what constitutes quality traineeships across the EU is a task that can only be addressed at EU level.
A reinforced Quality Framework for Traineeships will support and supplement national action in this area in line with Articles 165, 166 and 153 TFEU. This initiative applies the subsidiarity principle by fully taking into account that education and training systems are a national competence, while the EU may support and complement national policies on working conditions. The initiative fully respects the diversity of national traineeship systems and proposes a set of common criteria to underpin those different schemes, ensuring benefits for both the trainee (regardless of their employment status) and traineeship providers.
The initiative will improve the transparency and mutual understanding of traineeship systems, in particular, the quality of traineeships, across the EU. This may also have a positive impact on cross-border mobility of trainees as a coordinated approach at EU level would ensure synergies and cooperation, maximising positive spillovers.
Moreover, providing guidelines at EU level contributes to creating a shared understanding of how the quality of traineeships can be improved. This may also help Member States in their use of the European Structural and Investment Funds, in particular the European Social Fund+ and the Recovery and Resilience Facility, addressing youth unemployment and inactivity.
• Proportionality
The actions proposed in the proposed recommendation are proportionate to the objectives being pursued. The proposal will support the reform processes launched by individual countries on traineeships and will complement Member States’ efforts in this area as part of the European Semester framework of economic Governance. The proposal respects Member States’ practices and the diversity of their systems. It allows for a differentiated approach reflecting Member States’ different economic, financial and social situations and the diverse labour market conditions. Using existing monitoring mechanisms under the European Semester will ensure that no additional administrative burden is created.
• Choice of the instrument
The proposed instrument is a Council Recommendation. This respects the principles of subsidiarity and proportionality. It builds on the existing body of EU law and is in line with the type of instruments available for EU action in the areas of education and training and employment. As a legal instrument, it signals the commitment of Member States to the measures laid down in this recommendation and provides a strong political basis for cooperation at EU level in this area. It also fully respects Member States’ competence in the field of education and training and social policies.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
An evaluation (31) of the 2014 Council Recommendation on a Quality Framework for Traineeships was carried out in 2022-2023. It found that traineeships continue to be an important pathway for young people to enter the labour market. Quality traineeships, which are those that reflect the principles of the QFT, contribute to increasing employability and help employers attract, train and retain staff.
In terms of effectiveness, the QFT principles that were most likely to have a positive impact on labour market integration of young people were the setting out of learning and educational objectives and the written agreement. However, actual progress in the take-up of its quality principles in national legislation was moderate. Since 2014, 14 Member States introduced changes (either to OMTs or ALMP traineeships or both), integrating the quality principles of the QFT in their legislative or policy frameworks. Such changes were more prevalent in national legislation governing ALMP traineeships (identified in 12 Member States) than OMTs (identified in five Member States). Furthermore, while the prevalence of specific legal provisions as well as their conformity with the principles of the QFT were found to be high for ALMP traineeships, they were more limited for OMTs. Overall, a slight improvement in terms of conformity was observed for OMTs with four Member States fully/mostly aligned in 2016 compared to seven Member States in 2021. A larger improvement was observed for ALMP traineeships, with 18 Member States fully/mostly in conformity in 2021 versus 15 in 2016. Room for improvement was identified in the actual application of the QFT on the ground and its monitoring and enforcement. As for the QFT facilitating cross-border mobility of trainees in the EU, there were indications that the number of cross-border traineeships had increased, but young people still faced difficulties participating in them due to a lack of financial means and the unavailability of practical information. The use of the European Employment Services (EURES) as a source of information was found to be limited.
The QFT provided added value as a reference point at EU level for Member States’ regulatory action on the quality of traineeships. This was particularly the case for Member States with less developed traineeship systems, where the QFT helped foster policy and legislative changes at national level.
As for efficiency, though the evaluation lacked quantitative evidence on costs and benefits, stakeholders generally perceived the cost related to implementing the QFT as proportionate to the benefits. Benefits for employers included a better understanding of traineeship quality, reputational advantages, increased attractiveness to young talent, and a more sustainable way to invest in potential future workers. However, the implementation of the QFT could have been less cost effective for small and micro enterprises than for larger firms as costs for those businesses (due to limited human and financial resources) may have been higher relative to the benefits. Benefits of the QFT for trainees included improved working conditions and better training and learning content, which increased their chances of getting regular jobs.
The QFT was found to be coherent with other EU level initiatives, strategies, programmes and funding instruments. At national and regional level, a higher level of coherence was found with measures on ALMP traineeships than with those on OMTs. Despite the many similarities in quality principles, the European framework for quality and effective apprenticeships (EFQEA)(32) was perceived as leading to a greater involvement of stakeholders (e.g. through dedicated networks). The EFQEA was also viewed as having higher and more specific quality objectives and more benefits because stronger language was used in the EFQEA recommendation and apprenticeships are often more regulated on a tripartite basis in Member States.
Some respondents (particularly employers) considered that the QFT should remain ‘as is’ as they deem it sufficiently relevant in addressing trainees’ needs. However, various stakeholders considered that the relevance of the QFT could be further strengthened, in particular, when it comes to pay and social protection for trainees and outreach to as well as access for groups in vulnerable situations. In addition, some stakeholders considered there was a need for the QFT to address the challenges of remote working and guidance and mentorship in that context. Furthermore, some stakeholders suggested adding traineeships that are part of formal education and training to the scope of the QFT. Some stakeholders also considered that to ease the transition of a young trainee to a stable job, the QFT could place more emphasis on post-placement support. As for the non-binding nature of the QFT, views diverged on whether this is appropriate for fully reaching the QFT objectives. On the one hand, some (notably youth organisations and trade unions) argued for a binding instrument to increase the effectiveness of the QFT. On the other hand, others (especially employers and national authorities) argued that, given the differences in national circumstances and legal limitations at EU level, the QFT’s non-binding nature gave an adequate and flexible reference framework for national regulations.
• Stakeholder consultations
Specific consultation activities took place in 2022 as part of the Commission’s 2023 evaluation of the QFT (33), in particular through a public consultation survey. The evaluation also included targeted consultations of national and regional authorities responsible for education, training and employment policies, social partners, education and training providers, academic experts working on labour market issues, organisations representing young people, young (former, current and potential future) trainees and other stakeholders at EU, national and regional level. To reach all these stakeholders, different consultation activities and methods were used, such as interviews, targeted consultation meetings, a targeted trainees survey and case studies.
A two-stage consultation of the EU social partners under Article 154 TFEU was carried out for this proposal. During the first stage, which took place between 11 July and 15 September 2023, social partners were consulted on the need and possible direction of EU action (34). During the second stage, between 28 September and 9 November 2023, the Commission consulted social partners on the objectives and potential legal avenues for EU action (35). Trade unions welcomed the Commission’s intention to update the QFT. They considered that, although the principles of the QFT remained relevant, trainees needed binding protection (in the form of a directive) to ensure fair compensation, working conditions and social protection. This directive should ensure access to all rights enjoyed by regular workers under existing EU legislation. Trade unions stressed that the main objective of EU action must be to set binding minimum standards for traineeships in the EU and to create a level playing field that discourages abuse. Employers considered that the principles of the 2014 QFT remain relevant. In their opinion, a stronger focus should be placed on its implementation and monitoring, but in their view a revised Council Recommendation would strike the right balance between promoting minimum standards and preserving flexibility. The objectives to address the problematic use of, improve the quality of and foster access to traineeships were supported by employers. Employers also highlighted the lack of data, in particular on open-market traineeships, and the link between pay and the quality of traineeships. There was no agreement among social partners to enter into negotiations to conclude an agreement at Union level in accordance with Article 155 TFEU.
Furthermore, as part of the study exploring the context, challenges and possible solutions in relation to the quality of traineeships in the EU, an online survey was conducted with national stakeholders. This aimed to gather information on the current practices of businesses regarding traineeships and identify good practices implemented in Member States and their impact on the quality of traineeships. The survey ran from 15 June to 8 September 2023 and was targeted at national public authorities, national business/employer associations, individual businesses, national trade unions, national youth organisations, civil society organisations and educational institutions. Targeted interviews with EU-level stakeholders were also carried out.
A dedicated ‘SME Panel’ survey was conducted by the Directorate General for Employment, Social Affairs and Inclusion (DG EMPL), the Directorate General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), the European Innovation Council and the SMEs Executive Agency (EISMEA) and with the support of the Enterprise Europe Network between 12 October and 9 November 2023.
The Flash Eurobarometer survey (523) (36) looked into young people’s perceptions of their integration into the labour market, with a particular focus on traineeships. Between 15 and 24 March 2023, 26 334 people aged between 18 and 35 from all Member States were surveyed online.
• Collection and use of expertise
The proposed recommendation draws on several studies carried out to underpin the analysis of the initiative:
- a study commissioned from external experts, of which the preliminary results were used: 'Study exploring the context, challenges and possible solution in relation to the quality of traineeships in the EU' by a consortium of Ernst & Young (EY), the Centre of European Policy Studies (CEPS) and Open Evidence (forthcoming)
- an external study supporting the evaluation of the Quality Framework for Traineeships, Final Report, January 2023 (37)
- the Flash Eurobarometer survey on the perception of young people regarding their integration into the labour market, with a particular focus on traineeships (38)
The European Parliament’s 2023 legislative own-initiative resolution on quality traineeships in the EU was also taken into account, in conjunction with the relevant European added value Assessment of Parliament’s research service (39).
• Impact assessment
In line with its Better Regulation policy, the Commission carried out an impact assessment (40). This gave a structured analysis of the policy problems, corresponding policy objectives and policy options and assessed their impact. It considered the subsidiarity, effectiveness, efficiency, coherence and proportionality of the identified options and how to monitor and evaluate the initiative in the future. This work was supported by a structured consultation in the Commission via an inter-service steering group (41) and the forthcoming “Study exploring the context, challenges and possible solution in relation to the quality of traineeships in the EU” referred to above.
The impact assessment identified three problems: (1) the problematic use of traineeships by traineeship providers, (2) the poor quality of traineeships and (3) unequal access to traineeships. The impact assessment examined three policy options, which combined both legislative and non-legislative measures addressing the objectives of the initiative in terms of enforcing applicable rights of trainees, preventing the problematic use of traineeships, ensuring fair working conditions, improving the learning content, and improving the access to and the inclusiveness of traineeships. The assessment of the impact of the options also took into consideration the potential unintended consequences of the different policy options, including on the offer of traineeships.
The preferred policy option identified in the impact assessment is a package made up of a directive applying to trainees who are workers under EU law and an updated Council recommendation covering all trainees. This package is expected to bring social benefits to trainees by reducing problematic and poor-quality traineeships through equal treatment, fairer pay and adequate social protection, and by improving access to traineeships, in particular for persons in vulnerable situations, including persons with disabilities, those residing in rural, remote and outermost regions, those with a disadvantaged socio-economic and/or migrant background, those from the Roma community, and those with lower educational attainment. The preferred option is expected to result in economic benefits for traineeship providers, such as fairer market competition, productivity and competitiveness gains due to a more skilled and diverse workforce and lower search, matching and recruitment costs. As for costs associated with the preferred option, these relate to a possible increase in labour costs, adjustment costs and potential costs resulting from administrative or judicial procedures. National budgets and administrations are expected to benefit from increased tax and social security receipts and reduced social protection and activation spending.
The impact assessment was first discussed with the Commission’s Regulatory Scrutiny Board on 13 December 2023. On 1 February 2024, a revised impact assessment Report was submitted to the Board. On 22 February 2024, the Board issued a positive opinion with reservations (42). The remaining comments were subsequently addressed, by specifying further the limitations of the used data, strengthening the discussions on level playing field and competition issues and providing additional targeted clarifications on the description and assessment of the policy options.
• Fundamental rights
The Charter of Fundamental Rights of the European Union protects a broad range of employment rights. The objectives of this proposal are in line with the Charter. The proposed recommendation is expected to contribute to ensuring the right to equality before the law (Article 20 of the Charter), the right to fair working conditions (Article 31), the protection of young people at work (Article 32), access to adequate social protection (Article 34) and healthcare (Article 35).
4. BUDGETARY IMPLICATIONS
The proposed recommendation does not require additional EU budget or staff resources.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
The recommendation proposes that Member States take appropriate measures to apply the reinforced QFT as soon as possible and submit an implementation plan setting out the corresponding measures to be taken at national level by [date of adoption + [18 months].
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
The proposed recommendation offers a set of criteria for quality traineeships, while allowing flexibility in implementation by Member States. This enables them to take into account the specific nature and different needs of their national traineeship schemes.
Objective and scope
Point 1 sets out the objective of the reinforced framework to improve the quality of traineeships, in particular learning and training content and working conditions.
Point 2 explains the scope of the reinforced framework, which applies to all trainees, regardless of their employment status. It clarifies that, for those trainees who are workers, the framework only applies if there are no equivalent or more favourable provisions laid down in EU law.
Written agreement
Points 3 and 4 recommend that traineeships are based on a written agreement and update the contents of the written agreement by recommending additional information on the learning component, tasks, mentorship arrangements and social protection.
Learning and working conditions
Points 5 to 15 set out the learning and working conditions, including the learning and training objectives, fair pay, applicable rights and working conditions under applicable EU and national law, the assignment of a supervisor and a mentor, conditions for remote/hybrid traineeships, a reasonable duration (including for repeated/consecutive traineeships), renewal and termination of traineeships and channels for trainees to report malpractice and poor conditions. They also set out that traineeship providers cannot require candidates to have previous work experience.
Social protection
Point 16 recommends access to adequate social protection in line with national practices and taking into consideration Council Recommendation on access to social protection for workers and the self-employed.
Recognition of traineeships
Point 17 updates the proper recognition of traineeships by adding that such recognition, where appropriate and if possible, should be produced in a digital format.
Transparency requirements
Points 18 to 20 set out transparency requirements and adds that vacancy notices and advertisements should also provide information on the level of pay, working conditions, social protection coverage and the expected tasks.
Inclusive traineeships
Points 21 to 24 recommend measures on inclusive traineeships (including by ensuring equal treatment and non-discrimination and by improving access and outreach to those in vulnerable situations), neutral language in vacancy notices / advertisements, raising awareness and changes, where relevant, to ensure accessibility, including for those in vulnerable situations, in particular (candidate) trainees with disabilities.
Cross-border traineeships
Points 25 to 29 update the measures aimed at facilitating cross-border traineeships, calling for practical guidance and information on cross-border traineeships through EURES and by encouraging the application of the principles of the reinforced framework, where applicable, in traineeship mobility agreements with hosting organisations outside the EU.
Additional traineeship support
Point 30 recommends additional traineeship support, in particular by providing career guidance and network opportunities.
Framework conditions
Points 31 to 33 set out the elements regarding the framework conditions, including on the involvement of social partners, employment services, education and training institutions and other stakeholders. It is also recommended to ensure that workers’ representatives may defend the rights of trainees.
Applying the reinforced quality framework
Points 34 to 35 provide recommendations on applying the reinforced QFT, including for Member States to submit an implementation plan, and by envisaging financial and non-financial support to traineeship providers, in particular SMEs.
Support to increase trainees’ employability
Points 36 to 37 set out support measures to increase trainees’ employability and recommend giving incentives to traineeship providers to propose a job after a traineeship and use EU funds for traineeships that are in line with the principles of the reinforced Framework.
Follow-up
Point 38 recommends Member States and the Commission work jointly on the collection of data.