Flemish employment minister Zuhal Demir (Flemish nationalist N-VA) is temporarily suspending subsidies for Flemish educational leave for workers at temping agencies. These subsidies enable employees in the temporary employment sector to retain their wages while they are undergoing training. However, there are indications that the agencies are applying for subsidies for training courses that the employees have not taken or that are not eligible for subsidies.
At least two temporary employment agencies are embezzling subsidies on a massive scale for training courses that do not even exist or are not eligible for Flemish training leave daily Het Laatste Nieuws reports. Minister Demir says the agencies in question are Accent Jobs and Itzu. ‘The extent of the fraud is difficult to estimate at this point,’ the minister says. It is estimated that several million euros have been defrauded.
Flemish training leave is a right of all employees in the private sector. Each year, workers can take up to 125 hours of training, while their employer continues to pay their wages. For every hour that an employee takes a recognised training course, the employer can receive 15 euros back from the government. Two temporary employment agencies are alleged to have committed fraud in this way.
Subsidies for entire sector suspended
Minister Demir says she now wants to suspend subsidies for Flemish educational leave for the entire temporary employment sector.
‘I have instructed my administration to stop payments to the entire sector with immediate effect and to place the two companies under administration,’ said the minister. ‘This is pending a thorough investigation by my inspection services. I will also summon the temporary employment sector to my office for an explanation.’