Incentives for Employers
WAGE SUBSIDY SCHEME – GRANT AID FOR EMPLOYERS
“People with disabilities are not only those whose disability is immediately obvious, for example, visually impaired, or people who use a wheelchair. Many disabilities which may affect employment are not obvious, for example, mental illness, heart problems, asthma, arthritis, epilepsy or hearing impairments. An impairment would substantially affect a person but which is controlled by medical treatment is still covered by the definition of disability” (Roscommon Supported Employment Service)
FÁS Wage Subsidy Scheme (WSS)
The WSS provides financial incentives to employers to employ people with disabilities to work for more than 20 hours a week. It is based on the employee’s level of productivity and the number of hours worked. Subsidies are structured under three strands and the employer can benefit from one or all.
All private sector employees who can provide 20 hours minimum employment and up to a maximum of 39 hours. Employers must comply with statutory requirements in regard to employment protection legislation, PRSI and income tax liability.
STRAND 1: Wage subsidy payment
The subsidy is calculated in the basis of an agreed productivity difference between the employee with a disability in comparison with other employees. So for example, where an employee with a disability has a productivity level of between 50% to 80%, a maximum contribution of €7,650 per annum is provided based on a 39 hour week, i.e. an hourly rate of €3.77
In the case of disabled employees who are assessed to have productivity levels of below 50% the maximum annual subsidy will be €9,500 based on 39 hour week i.e.an hourly rate of €4.69 the employer pays 100 % of the gross wage as advertised to the employee. FÁS does not have a prescriptive system of calculating the productivity rates of employees and rates are on the basis of the integrity of employer and employee.
Strand II: Additional Management and Supervisory Costs
A company employing three or more disabled people can avail of a top-down grant to cover the additional supervisory management and other work based costs.
The top-up grant is a percentage of the wage subsidy only based on the overall number of employees and is within a scale of a minimum of 10% top-up for 3 to 6 employees with disabilities to a maximum of 50% top-up where over 23 employees are involved.
STRAND III: Employment Assistance Officer
An employer who employs 30 or more employees with disabilities can avail of a grant of €30,000 a year towards the cost of employing an Employment Assistance Officer (EAO)
Financial Supports for Employees
Employees with disabilities who qualify for the Dept. of Community and Family Affairs Back to Work Allowance (BTWA) can also avail of WSS when availing of employment. Recipients of BTWA who also qualify for WSS can retain their secondary benefits, for example medical card for three years. Restoration of Disability Allowance and Invalidly Pension will be automatic if the employee is unable to continue on WSS.
It is illegal in Ireland to discriminate against any employee on the basis of disability and this right is set down in legislation (Employment Equality Acts 1998 and 2004)
However it is permitted to discriminate on the grounds of disability where it can be shown that “ there is clear actuarial or other evidence that significantly increased costs would result, if the discrimination were not permitted” For this reason, employers who employ people with disabilities with proven productivity rates of 50-80% will not lose out if they employ people with disabilities as the grant aid under this scheme from FÁS will make up any shortfall in reduced revenue.
Employees for whom the employer claims grant assistance under the scheme is subject to the same conditions of employment as all other staff. This means that these employees qualify for PRSI contributions, annual leave, tax deductions, contracts of employment and minimum wage requirements.
How to apply
To apply for grant aid under this scheme, the employer completes an application for a grant under the Wage Subsidy Scheme. All employers applying for grant aid under this scheme must be in possession of a current tax clearance certificate.
Where to apply
Employers who are considering employing a person with a disability or are enquiring about other supports available for employers when employing a person with a disability should get in touch with their local FÁS Employment Support office for more Information.
Workway
Workway was an IBEC/ICTU led partnership initiative which sought to promote employment opportunities for people with disabilities. It was set up under the Programme for Prosperity and Fairness in 2001 and the programme concluded in 2005. In seeking to address some of the barriers experienced by people with disability in accessing employment , it produced two important publications “A Guide for job Seekers with Disabilities” and “Disability and Employment Guidelines”. While Workway has ceased to function, its website is maintained by FÁS as a valuable resource for people with disability seeking entry to the open labour market www.workway.ie
Changes
Strand 1: Wage subsidy payment
The subsidy is calculated on the basis of an agreed productivity differences between the employee with a disability in comparison with other employees. So, for example, where an employee with a disability has a productivity level of between 50% to 80%, a maximum contribution 0f €8,639 per annum is provided based on a 39 hour week, i.e. an hourly rate of €4.26.
In the case of disabled employees who are assessed to have productivity levels of below 50% the maximum annual subsidy will be €10,748 based on a 39 hour week, i.e. an hourly rate of €5.30. The employer pays 100% of the gross wage as advertised to the employee. FÁS does not have a prescriptive system of calculating the productivity rates of employees and rates are on the basis of the integrity of employer and employee.
EMPLOYMENT RETENTION GRANT SCHEME
The FÁS Employment Retention Scheme (ERGS) aims to assist private sector employers to retrain employees who acquire an illness or impairment that affects their ability to carry out their job. In a changing employment climate in Ireland, experienced, capable staff is a precious commodity and the onset (or progression of) a condition or disability does not always immediately throw up issues of retention for employers.
The scheme aims to maintain your employability by providing funding to:
- Retain you so that you can take up another position within the company
- Identify accommodation and or training to enable you to retain your current position.
Rules
The scheme is open to every company in the private sector. Any existing employee (Working at any level in the organisation) who acquires an illness, condition, or disability that affects his or her job is covered under the scheme. Public sector employers in Ireland are not eligible to apply for these grants. Public Sector employers in Ireland are obliged to promote positive attitudes toward disability and ensure they put in place all arrangements to ensure that full integration of staff with a disability into employment.
Funding under this scheme is made available in two stages:
Stage 1: Assists employers by allowing them to “buy-in” expert skills from outside the company to develop a written individual “Retention Strategy” for any employee who acquires a disability. The Retention Strategy could set out steps needed to accommodate and, if necessary, train the employee to remain in his or her role. Alternatively the Retention Strategy could outline where the employee could be re-deployed in the company and the accommodation/re-training needed to do this.
Stage 2: Provides financial assistance (grant aid) to the employer towards the implementation of the written
Retention Strategy.
This includes grant aid towards re-training, job coaching and/or hiring an external co-ordinator to oversee the way in which your individual Retention Strategy is brought into effect.
The following activities are not eligible for funding under the Employee Retention Grant Scheme:
- Attendance at workshops and seminars
- Capital expenditure associated with training
- Company-wide disability management assessments or the development of disability/ absent management policies.
Developing the Retention Strategy
- The employer contacts a Specialist(e.g., an occupational therapist) who evaluates the employee’s occupational capacity and carries out a job/workplace assessment. The Specialist then develops the Retention Strategy in collaboration with the employer, the employee and if it is appropriate, the employee’s representative (e.g., a trade union representative) and line – manager. The Retention Strategy must accompany an application for Stage 1 funding and must have been received by FÁS before an application is made for Stage 2 funding.
Rates
Stage 1: FÁS pays 90% of the programme costs ( to a maximum amount of €2,500 for each employee in order to enable the employer to hire a specialist(s) to evaluate the employee’s occupational capacity to carry out the workplace/job assessment and to develop a Retention Strategy.
Stage 2: FÁS pays funding of 90% of eligible costs to a maximum of €12,500 to help with:
- Training the employee for his or her current post or retaining him or her for another post within the company.
- Hiring a Job Coach to provide support to the employee and lease with his or her line manager for a maximum of 300 hours and/or
- Hiring a specialist to manage the Retention Strategy on an ongoing basis until the employee’s reintegration is complete.
A maximum period of 60 hours applies.
An employer cannot make an application for funding this scheme without having the assistance of an individualised written Retention Strategy.
How to apply
Applying for Stage 1 funding
The employer must complete and return the application form ERG 1, which is available from the local FÁS Services to Business Office.
The application form must be accompanied by:
- References for the Specialist from two companies that have previously employed him or her
- Copies of the Specialist’s qualifications and, where applicable, professional memberships
- The employer’s current Tax Clearance Certificate
- A current Tax Clearance for the Specialist or his or her employer
The application form must be signed by the employee, the employer (or nominee), the employee’s line manager (where appropriate) and the Specialist.
Making a claim for stage 1 funding
The employer must complete the parts of the standard claim form ERG-Claim that relate to stage 1 and return it to their local FÁS services to Business Office. The claim form must be accompanied by:
- Detailed Invoices and receipts
- A copy of the written Retention Strategy
- A copy of the employer’s Tax Certificate if this has not been submitted with application form ERG 1
- A copy of the Specialist’s or his/her employer’s Tax Clearance Certificate
The claim form must be signed by the employee, the employer (or nominee), the employer’s line manager (where appropriate), and the employee’s representative and the Specialist.
Applying for Stage 2 Funding
Employers can apply for stage 2 funding once Stage 1 has been completed. FÁS must approve applications for Stage 2 Funding before the Retention Strategy is implemented. The application form ERG2 must be accompanied by:
- The written Retention Strategy if it has not been previously submitted with the claim form for Stage 1
- The current Tax Clearance Certificate for all external parties involved in the implementation of the Retention Strategy if the certificates have not been previously submitted.
- The employer’s current Tax Clearance Certificate if it has not been previously submitted.
The application form must be signed by the employee, the employer (or nominee), the employee’s line manager (where appropriate), the employee’s representative and the Specialist. Where the value of an application is greater than €7,600 and a single provider provides services, the employer must obtain three independent quotations and present them to FÁS. If the lowest quote is not accepted, the employer must state the reason for the selection.
Making a claim for Stage 2 funding
The employer must complete the parts of the standard claim form ERG-Claim that relate to stage 2 and return it to their local FÁS services to Business Office. The claim form must be accompanied by:
- Detailed Invoices and receipts
- A copy of the employer’s current Tax Clearance Certificate if this has not previously been admitted.
- A copy of the current Tax Clearance Certificate for the Specialist and/or his or her employer, if it has not been previously admitted.
The application form must be signed by the employee, the employer (or nominee), the employer’s line manager (where appropriate), the employee’s representative (where appropriate) and the Specialists.
Your local FÁS Services to Buildings Office will forward a copy of the general conditions governing the scheme. Staff in your local Services to Buildings Office will forward a copy of the general conditions governing the scheme. . Staff in your local Services to Buildings Office will also be happy to answer any queries and provide assistance you require.
Where to apply
Your completed application form should be forwarded to your local FÁS Services to Business Office.