RULEBOOK ON REQUIREMENTS, CRITERIA AND MANNER OF IMPLEMENTATION OF ACTIVE EMPLOYMENT POLICY MEASURES. Article 1

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1 Pursuant to Article 10, point f) of the Law on Employment Placement and Entitlements during Unemployment (Official Gazette of the Republic of Srpska 30/10, 102/12) and Article 19, point 11) of the Statute of the PI Republic of Srpska Employment Institute 49/16), the Management Board of the PI Republic of Srpska Employment Institute, at its meeting held on 23 February 2017 hereby issues the following RULEBOOK ON REQUIREMENTS, CRITERIA AND MANNER OF IMPLEMENTATION OF ACTIVE EMPLOYMENT POLICY MEASURES I GENERAL PROVISIONS Article 1 This Rulebook regulates further the requirements, criteria, manner and other issues relevant for the implementation of active employment policy measures by the PI Republic of Srpska Employment Institute (hereinafter the Institute ), in compliance with the Law on Employment Placement and Entitlements during Unemployment (hereinafter the Law ), the Statute of the PI Republic of Srpska Employment Institute (hereinafter the Statute ), the Republic of Srpska Employment Strategy (hereinafter the Strategy ) and the Republic of Srpska Employment Action Plan (hereinafter the Action Plan ). Article 2 The Institute implements active employment policy measures through plans, programmes and other measures of labour market intervention aimed at contributing to faster employment, total employment growth and unemployment reduction. The Employment Strategy as a key document which defines the main measures and activities at labour market, also establishes the basis of active operational policy by means of employment action plans. The Institute also implements active employment policy measures through project activities conducted in cooperation with the Government of the Republic of Srpska, domestic and international organisations and institutions. 1

2 Article 3 The active employment policy measures regulated further by this Rulebook, to be implemented by the Institute are: 1. employment placement of persons who are actively seeking employment or change of employment; 2. professional orientation and career planning counselling; 3. labour market monitoring and analysis and information about employment opportunities and terms; 4. employment subsidies; 5. self-employment support; 6. employment preparation, additional education and training; 7. public works; 8. other active policy measures aimed at employment and employability growth of persons seeking employment, which can be created at annual level by the Action Plan depending on labour market needs. This Rulebook also regulates further the disbursement of the one-off benefit amount. Article 4 The beneficiaries of active employment policy measures implemented by the Institute are: persons actively seeking employment and persons seeking change of employment (hereinafter unemployed persons ) and employers. 1. Employment Placement of Unemployed Persons Article 5 Employment placement means the tasks of connecting unemployed persons with employers aimed at conclusion of employment contract or another type of work engagement. In the employment placement procedure, an unemployed person who is actively seeking employment takes priority over persons seeking change of employment. 2

3 Article 6 The tasks of employment placement include: - providing information about the rights and obligations of unemployed persons and services offered by the Institute; - interviewing unemployed persons individually; - assessing employability of unemployed persons and defining individual employment plans; - organising training for active job search; - reporting and advertising job vacancies; - preliminarily selecting unemployed persons as per employer s request and labour market needs; - directly connecting employers and unemployed persons; - organising employment fairs; - intercity placement. Article 7 The Institute provides information about the rights and obligations of unemployed persons and services by means of individual and group information, after registration in the records of the unemployed. Individual information is provided at the bureaus competent for the place of residence of unemployed person directly by brochures, publications, posters, leaflets and other means depending on information potential and nature. Group information is provided simultaneously to a large number of unemployed persons by job search clubs and information, counselling and training centres (hereinafter ICTC centres ) Article 8 Individual interview with an unemployed person is conducted by an expert associate for counselling work with unemployed persons (hereinafter counsellor ). The purpose of individual interview is to collect information about education, work experience, personal, social and professional characteristics, interests and work motivation and other personal data and information concerning employment potential. 3

4 Individual interview sets professional goals compatible with the situation at labour market and need for inclusion in the active employment policy measures, and occupations to be subject of placement, which match the needs, qualifications, work experience and abilities of active employment seekers, and are verified by an individual employment plan. Article 9 An unemployed person who declares during individual interview to be able to find a job independently without the support of the Institute, based on self-assessment, is not included in the active employment policy measures. If an unemployed person declares at any time that they are no longer able to find a job independently, the counsellor shall assess their employability, and based on that define the activities and measures to be undertaken by the Institute to provide that person with the support and assistance aimed at employment. Article 10 Employability assessment of unemployed persons is an analysis of their characteristics relevant for their employment and inclusion in the active employment policy measures and labour market needs, which enable identifying the type and level of assistance needed by the person and establishing individual employment plan. Unemployed persons are classified into three groups by their level of employability, in accordance with the set criteria, as follows: - easily or directly employable person; - conditionally employable person and - hardly employable person. Article 11 Individual employment plan is established based on information collected through individual interview. Individual employment plan is a document which includes information about the person seeking employment, occupations in which they are seeking employment, activities they will undertake aimed at employment, and measures they will involve in for the purpose of employment. Individual employment plan is prepared with the unemployed person after information providing, individual interview and employability assessment. 4

5 Article 12 Individual employment plan is established by a counsellor with the unemployed person at the bureau within 60 days from the day of registration in the records of the unemployed. The counsellor monitors conducting of the activities set by the individual employment plan of the unemployed person. Article 13 Both individual employment plan and employability assessment are subject to modifications as a minimum once every six months for the purpose of adjustment to labour market needs and characteristics of the unemployed. An unemployed person deemed temporarily unable to work based on employability assessment during individual interview and submitted documents, is not established an individual plan or included in the active employment policy measures as long as the reasons for inability persist. Article 14 The Institute provides expert assistance to unemployed persons through information and motivational workshops and other forms of group work, aimed at acquiring and developing knowledge and skills for active job search, i.e. entrepreneurial knowledge and competences to manage own professional development and other knowledge, skills and competences. The Institute organises active job search trainings in order to prevent long-term unemployment of the unemployed persons assessed in need of support to master the technique of active job search. The training referred to in paragraph 2 of this Article is conducted under the established standards and methods of work or specific instructions for those purposes. These trainings are conducted at job search clubs and ICTC centres, and if that is not possible, the training is conducted at the bureau. 5

6 Article 15 The Institute keeps records of job vacancies reported by employers. An employer submits to the Institute a registration of need for employees which is then posted on the notice board and web page of the Institute within three days from the day of submitting, and at employer s request also published in the media. The Institute shall provide feedback from the employer concerning fulfilment of their registered need for employees, and information concerning the reasons for potential failure to fulfil the registered need for employees. The employer may request the Institute to directly offer a selection of employment candidates, instead of publishing the need for employees. Article 16 The tasks of preliminary selection of unemployed persons as per expressed need of employers mean selecting persons in accordance with the requirements and criteria set by the employer for employment or work engagement at a specific workplace. At employer s request, the Institute shall send a person whose profile, competences and professional interests match employer s request, i.e. the type of work subject of employment placement, and who is ready to accept the specific offer. If data from the records show that there are no persons who match employer s request, the employer is offered a possibility of intercity placement, advertising the expressed need by means of various media, and alternative candidate profiles compatible with the expressed need. Article 17 If so agreed previously as a form of placement, the Institute shall take part in employer s interview with unemployed persons. The Institute may organise a group interview for the employer with a large number of unemployed persons selected according to the needs of the employer, in order to present the offer of vacancies and to create a possibility of direct presentation of unemployed persons. The Institute may also organise individual interviews for the employer with job candidates, at the premises of the employer, the Institute or other premises as agreed with the employer. 6

7 Article 18 A person seeking employment sent to an employer to conclude employment contract or another type of work engagement shall report to the employer on a specific day at agreed time. The person referred to in paragraph 1 of this Article, who is unable to report to the employer for justified reasons, shall notify the bureau of the reasons and inability to report to the employer in a timely manner, but not later than one day before reporting to the employer. Article 19 The following shall be deemed justified reasons of inability to report to the employer referred to in Article 18, paragraph 2 of this Rulebook, or for non-acceptance of the offered placement for appropriate employment: - health inability of the unemployed person or members of their immediate family; - death of a member of immediate family of the unemployed person; - if employment is offered in a place at more than 50 kilometres from the place of residence of the unemployed person; - other reasons created independently of the fault or will of the unemployed person. Based on submitted evidence of reasons for failure to report, the Institute assesses the justifiability of reasons referred to in paragraph 1 of this Article, and acts in compliance with the Law if the reasons are unjustified. The justifiability of reasons established by paragraph 1 of this Article is assessed also in case of failure to fulfil other obligations of active employment search. If an unemployed person fails to fulfil the obligations set forth by the individual employment plan without any justified reason, they shall be considered an inactive person in employment search. Article 20 Employment fairs are the activities which establish a direct contact between a large number of employers and a large number of unemployed persons, aimed at their employment and meeting of the expressed employers needs. Employment fairs are organised by Institute branches for one or more municipalities, depending on the expressed needs of employers and possibilities of participation of unemployed persons. The annual work programme of the Institute establishes the plan of holding of employment fairs. 7

8 Article 21 Intercity placement is connecting labour market supply and demand in the territory of several municipalities, conducted at employer s request if the expressed need for employment cannot be met in the territory of the bureau or branch, or at the request of a person seeking employment who wants to work outside the place of residence, i.e. seat of the bureau competent for records-keeping of that person. Article 22 In compliance with the Law, the director of the Institute shall issue instruction to regulate further the procedure of employment placement and meeting of the expressed needs of employers. 2. Professional Orientation and Career Planning Counselling Article 23 Professional orientation and career planning counselling mean the activities of individual or group information and counselling of unemployed persons and other persons in need of assistance in selecting or changing job or occupation and deciding about career development. Professional orientation and career planning counselling are conducted in order to prevent wrong selection of occupation, strengthen the competence of the beneficiaries in deciding about the choice of occupation. Article 24 Professional information includes collecting, preparing and placing information about the situation at labour market, analysing the needs of employers and monitoring changes at labour market in the region and in a wider area in order to provide necessary information to persons seeking employment, pupils, students and other persons for the purpose of employment, choice of occupation and professional development. Information concerning career development opportunities are provided to individuals and groups at ICTC centres and indirectly through various activities, by printed and electronic media which make relevant information for career planning and management available to all interested persons. 8

9 Article 25 Professional counselling means individual and group counselling of unemployed persons, pupils, students and other persons, for the purpose of employment, choice of occupation and personal professional development. Individual professional counselling identifies qualification, work and personal potentials of a person in order to establish a professional plan. Group professional counselling means motivational seminars which enable gaining competences to manage professional development and developing skills for active job search 3. Labour Market Monitoring and Analysis and Information about Employment Opportunities and Terms Article 26 Labour market monitoring and analysis are conducted in order to define active policy measures and undertake other activities at labour market which should contribute to faster employment. Article 27 Labour market monitoring and analysis include: - analysing and processing active supply of labour force, monitoring changes, comparing indicators and other factors which determine and affect labour force supply; - monitoring and analysing inflow of persons into the records; - analysing reasons of employment termination and all reasons of records keeping termination; - monitoring and analysing the expressed and announced needs of employers; - organising labour market surveys in line with the established annual activities of the Institute and under relevant methodology. 9

10 4. Employment Subsidies Article 28 An employer may receive an employment subsidy for employing unemployed persons as follows: - at newly created workplaces; - at vacant workplaces; - in other cases set forth by the Employment Action Plan. Article 29 Subsidy level and unemployed person categories shall be set forth by the Republic of Srpska Employment Programme adopted by the Institute. Upon adoption of the employment programme, the Institute shall issue a public call for the implementation of active employment policy measures (hereinafter public call ) Article 30 Employers may receive an employment subsidy under the following conditions: - they employ unemployed persons from the records of the Institute in compliance with the terms set forth by the public call; - they are registered in compliance with legal regulations; - they are settling the liabilities arising from taxes and contributions in compliance with the law; - the beneficiary is economically capable to implement the programme; - they submitted a programme justifying the needs and reasons for new recruitment; - the beneficiary is not subject of initiated or instituted bankruptcy or liquidation proceedings; - they do not employ persons whose employment with the same employer terminated in the last 12 months; - number of employees has not decreased in the last six months preceding the month of filing of employment subsidy application, excluding normal employee turnover (migration, death, retirement); - they fulfilled their previous contractual obligations as Institute funding beneficiary. 10

11 Article 31 The application for employment subsidy is filed in the manner and within the deadlines as specified by the public call. The application should be accompanied by the following documents: - decision on the establishment of the legal entity or entrepreneur; - decision on registration with the Tax Administration (TIN); - employment programme; - copies of balance sheet and profit and loss statement under the latest statement of accounts certified by the APIF of the Republic of Srpska for legal entities or prescribed forms for entrepreneurs and small entrepreneurs; - tax certificate of settled liabilities related to public revenues issued by the Tax Administration of the Republic of Srpska; - evidence of fulfilment of the requirement referred to in Article 30, indent 8 of this Rulebook (form monthly withholding tax registration); - and other documents required by the public call. Article 32 In processing the applications, also the following criteria may be taken into account: - type of employer s activity; - development level of the municipality where the activity is being performed; - period of activity performance; - number and structure of persons being employed (beneficiaries of the benefit, persons lacking up to three years of insurance to meet the requirements for old age pension, persons registered in the records longer than one year, disabled persons); - previously used subsidy funds and employee retention after the expiration of contractual obligation; - increase of total number of employees with the employer during the last six months; - financial indicators. Article 33 Subsidies for employment with employers are allocated successively or through reimbursements in accordance with the adopted employment project. 11

12 Article 34 Employers shall not be approved the funding for employment of the unemployed persons whose employment was already funded by the Institute during the past three years under previous employment projects. 5. Self-Employment Support Article 35 Self-employment support includes providing expert and financial support to unemployed persons when starting business. The expert and financial support to self-employment of unemployed persons is provided through the following: - entrepreneurship trainings; - self-employment subsidy. Article 36 Entrepreneurship training programme is intended for the unemployed persons interested in performing own activity and aimed at increasing the level of information and competence for starting own business. The trainings referred to in paragraph 1 of this Article shall be conducted by the Institute. Article 37 A self-employment subsidy is granted to an unemployed person for establishment of a shop, agricultural holding or another form of entrepreneurship or for establishment of a company if the founder is to conclude employment contract therein. Several unemployed persons may also receive a subsidy for associating and establishing a company for the purpose of self-employment if all founders are to conclude employment contracts therein. Article 38 An unemployed person may receive a self-employment subsidy after fulfilling the following conditions: - they were registered in the records of the unemployed during the period set forth by the public call; 12

13 - they submitted an application for subsidy including a business plan; - they have completed successfully an entrepreneurship training; - they have registered the activity or have initiated the procedure of registration after the publication of the public call; - they have fulfilled also other requirements set forth by the public call. Article 39 The application for subsidy is filed in the manner and within the deadlines as specified by the public call. The application should be accompanied by the following documents: - proof of successful completion of entrepreneurship training; - business plan; - decision on the establishment of the legal entity or entrepreneur or certificate of initiation of registration procedure of entrepreneurial activity; - and other documents in compliance with the public call. Article 40 In processing the applications, the following criteria may be taken into account: - planned type of activity; - development level of the municipality where the activity is being performed; - category of persons being self-employed (beneficiaries of the benefit, persons lacking up to three years of insurance to meet the requirements for old age pension, persons registered in the records longer than one year and disabled persons; - resources required to start own business (premises, equipment), market (buyers, suppliers, competitors); - financial indicators Article 41 The self-employment funds shall be approved in the form of a grant if the beneficiary meets the contractual obligations, and allocated successively or through reimbursements, in accordance with the adopted employment project. 13

14 Article 42 A beneficiary of the benefit may be disbursed the benefit excluding the compulsory insurance contribution, in a one-off amount, for the purpose of self-employment. The funding referred to in paragraph 1 of this Article is approved at the request of the unemployed who is entitled to the benefit and whose decision on the exercise of that right has become final. The application referred to in paragraph 2 of this Article is filed with the bureau competent for the place of residence of the unemployed person. The decision on approval and disbursement referred to in paragraph 2 of this Article shall be adopted by the director of the Institute. Article 43 Together with the application, a beneficiary of the one-off benefit disbursement shall submit also the following: - copy of the decision on activity performance issued by the competent body; - copy of the decision on registration with the Tax Administration of the Republic of Srpska (TIN); - copy of the registration for compulsory insurance, form (PDZ100); - decision on recognition of the right to benefit; - contract with a bank on opening of a gyro-account. The one-off self-employment benefit amount shall be disbursed for the remaining disbursement period and calculated based on a monthly amount set by the final decision on recognition of the right to benefit. The beneficiary of the one-off benefit disbursement must perform the activity as a minimum during the period for which the one-off benefit was disbursed. Article 44 Self-employment subsidy funding may not be granted to an unemployed person who: - is entitled to disbursement of the one-off amount of self-employment benefit; - has already used a self-employment subsidy from the Institute; - was performing the same or similar activity in the last 12 months prior to the publication of the public call and has deregistered it. 14

15 6. Employment Preparation, Additional Education and Training Article 45 Employment preparation, additional education and training are active employment policy measures which enable unemployed persons to acquire new knowledge and skills through processes of education, theoretical and practical training for the purpose of employment, i.e. creation of potentials for employment and self-employment. Employment preparation, additional education and training mean: - acquiring special practical knowledge and skills for independent work in the field; - additional training as a form of acquiring new knowledge within the same occupation in order to increase competences; - retraining as a form of education and training for another occupation for the purpose of employment; - training programme; Article 46 Acquiring special practical knowledge and skills for independent work in the field enables gaining experience for independent work in the field and creating conditions for sitting a trainee exam in compliance with the law, and it is implemented through: - trainee programme - professional practice programme Article 47 Trainee programme means professional training of an unemployed person for independent work in the field and sitting of trainee exam in compliance with the law, along with conclusion of an employment contract. During traineeship, a trainee is entitled to a salary and has all other rights arising from employment in compliance with the law, general act and work contract. Trainee s work unfolds under a programme prepared by the employer. After completion of traineeship, the trainee sits an exam to verify their qualification for independent work. 15

16 Article 48 An unemployed person may take part in a trainee programme under the following conditions: - they are concluding employment contract for the first time as a trainee for the occupation or title for which they have obtained the required type and level of qualification, or they have worked for a period shorter than that set for traineeship; - they have completed a secondary or higher education. Traineeship lasts 12 months for persons with completed higher education and 6 months for persons with secondary education. Article 49 The amount and structure of funds to finance a trainee programme shall be set in a trainee employment programme. Article 50 An employer may be entitled to take part in a trainee programme financing if they have human resources and other capacities for professional training of trainees, in addition to meeting the requirements referred to in Article 30 of this Rulebook Article 51 Professional practice programme means professional training of unemployed persons for independent work in the field and creating conditions for sitting of exam to verify their qualification for independent work, without conclusion of an employment contract. Article 52 Funds for the implementation of a professional practice programme are used for the disbursement of meal allowance, transportation costs or remuneration to an unemployed person included in the professional practice programme, as well as of liabilities arising from taxes and contributions in compliance with the Law. Article 53 An unemployed person may be entitled to take part in a professional practice programme under the following condition: 16

17 - they have none or insufficient work experience in the field for creating conditions to sit the exam on qualification for independent work in the field; - they have completed a secondary or higher education Professional practice for persons with completed higher education lasts 12 months, and for persons with secondary education it lasts 6 months. Article 54 The amount and purpose of funds to finance a professional practice programme shall be set in the professional practice programme. Article 55 An employer may be entitled to take part in a professional practice programme financing if they have human resources and other capacities for professional training of unemployed persons, in addition to meeting the requirements referred to in Article 30 of this Rulebook. Article 56 Additional training programme means gaining new knowledge within the same occupation in order to upgrade the level of competence. Retraining programme means education and training for another occupation for the purpose of employment. The additional training and retraining programmes are intended for hardly employable persons and are conducted for the needs of labour market or known employer. Article 57 The additional training and retraining shall be conducted at educational, scientific and other institutions certified to perform those activities. Article 58 The Institute may take part in financing of a retraining or additional training programme for employees who have become redundant, if that enables the employees to conclude a work contract of minimum duration of 12 months. 17

18 Participation of the Institute in financing the programmes referred to in paragraph 1 of this Article shall be regulated by a contract with the future employer of the employees after completion of retraining or additional training. Article 59 Employers may receive an additional training or retraining programme financing subsidy under the conditions set forth in Article 30 of the Rulebook. Article 60 In addition to the documents that the employer must submit under employment programme, also the following documents should accompany the application for use of funds under an additional training or retraining programme: - additional training or retraining programme for employees aimed at their employment, including the number of employees and occupations subject of retraining/additional training, duration, manner of holding and deadline for conclusion of employment contract after completion of training; - specification of total training costs by purpose and level of shares of the employer and the Institute; - decision by the employer that, after successful completion of training, additional training or retraining, all employees shall be given certain tasks and work assignments. Article 61 The amount of funds for the implementation of retraining and additional training programmes shall be set in the specific employment programme. Article 62 Training programme is intended for hardly employable unemployed persons to gain additional knowledge and skills in order to improve the competences and increase competitiveness and employability at labour market. The trainings referred to in paragraph one of this Article can be: - trainings for labour market; - trainings at employer s request. 18

19 Article 63 Trainings for labour market can be: - trainings to gain additional knowledge and skills, in addition to the main occupation; - trainings to gain additional knowledge and skills to perform the tasks within the main or new occupation. Article 64 An unemployed person may be entitled to take part in the training provided that they meet the requirements such as knowledge level, physical, mental and health fitness for training type and employment potential that matches the needs. Article 65 The trainings are implemented in accordance with the expressed labour market needs. The Institute may take part in financing of the actual costs of training of unemployed persons if training is sought for the occupations for which there are no unemployed persons in the records or there are unemployed persons without appropriate knowledge and skills for the performance of tasks of that occupation. Article 66 Funds for the implementation of a training for labour market shall be used for the costs of organising the training and other costs in compliance with the law. Article 67 Trainings at employer s request are organised for the purpose of gaining knowledge and skills needed to perform the tasks at a specific workplace, at employer s request, if there are no persons with the necessary knowledge and skills in the records. Article 68 The Institute may take part in financing of the costs of training referred to in the previous Article. 19

20 Article 69 Employers may receive a training co-financing subsidy under the conditions set forth in Article 30 of the Rulebook. Article 70 In addition to the documents that the employer must submit under employment programme, also the following documents should accompany the application for use of funds under a training programme: - employee training programme aimed at their employment, including the number of employees and occupations subject of training, duration, manner of holding and deadline for conclusion of employment contract after completion of training; - specification of total training costs; - decision by the employer that, after successful completion of training, all employees shall be given certain tasks and work assignments. 7. Public Works Article 71 Public works are the works: - in social, humanitarian, cultural and other activities; - on maintaining and renewing public infrastructure; - on maintaining and protecting the environment and nature; - of general interest which are not part of the regular activity of a public company, or which a public company is unable to perform. Article 72 The Government shall decide about organising and implementing public works of interest for the Republic, and competent body of a local self-government unit shall decide about those of interest for the local self-government unit. Article 73 The Institute shall identify unemployed persons from the records to perform public works tasks with an employer. 20

21 Priority in identifying participation in public works shall be given to the following: - beneficiaries of the benefit; - persons waiting for employment for a long time; - persons older than 50; - women; - persons in need in compliance with the law. Article 74 The Management Board shall decide about the adoption of employment projects in accordance with the Republic of Srpska Employment Action Plan. At the proposal of the director of the Institute, the Management Board shall decide about the issue of a public call. The funds for financing of Institute employment programmes based on a public call shall be approved by the Management Board within the annual work programme and financial plan of the Institute. The Management Board of the Institute shall adopt a project and approve the funds under a project financed from other sources. Article 75 A commission to process and evaluate programmes shall be appointed by the director of the Institute, and submit its proposal to the director. A decision approving programme funding shall be made by the Management Board at the proposal of the director of the Institute. A decision not accepting an employment programme shall be made by the Management Board at the proposal of the director of the Institute. The Management Board may decide subsequently, under the same public call, to allocate the unused funds. Article 76 The applicant shall be entitled to object to the decision to the Management Board of the Institute within eight days from the day of receipt of the decision. The objection shall be submitted through the bureau competent for the seat of the applicant. 21

22 Article 77 Mutual rights, obligations and responsibilities between the Institute and funding beneficiary shall be regulated by a contract concluded based on a decision of the Management Board, within up to 30 days from the day of receipt of the decision by funding beneficiary. Article 78 An employer may recruit an employee after the publication of a public call and application filing, and before decision-making by the Management Board. The employment referred to in the previous paragraph may be accepted only if the Management Board decides to approve the employment funding. At the request of funding beneficiary, the Management Board may extend the period for employment of an employee for a maximum of 30 days. Funding beneficiary must employ the employee for a minimum of 12 months. If the employment of an employee is terminated before the contractual period of 12 months, the funding beneficiary must replace the employee by another from the same target group within 30 days from the day of that employee s employment termination. Article 79 When fulfilling contractual obligations, the funding beneficiary shall submit to the Institute a bank guarantee in the amount of the first disbursement of funding if it exceeds BAM 10,000, or a blank bill of exchange with the supporting charges statement for the amount up to BAM 10,000. Duration of the guarantee may not be shorter than 14 months to be counted from the day of recruitment of the last employee. The Institute may request also another contractual obligations security from funding beneficiary, depending on the project. Funding beneficiary receiving monthly reimbursements of funds need not submit any contractual obligations security. For employment programmes financed by the funds of other institutions and organisations, the manner of implementation and securing contractual obligations shall be regulated by mutual agreement between the Institute and those institutions under the terms and criteria given in the agreement. 22

23 Article 80 In case of failure to fulfil contractual obligations concerning employment duration, funding beneficiary must reimburse the entire amount of funding allocated for the employee if the employment lasted less than 12 months. Article 81 An employer who fails to file an application for subsidy reimbursement at the latest 90 days after the expiration of contract duration of 12 months shall forfeit the right to the reimbursement of contracted subsidy. Article 82 An employer who fully or partly fails to fulfil contractual obligations under a retraining, additional training or training programme must reimburse the entire amount of allocated funding to the Institute. Article 83 In case funding beneficiary cannot reimburse the allocated amount of funding as a single amount, the Management Board may approve reimbursement in maximum six instalments. In case of extraordinary circumstances or force majeure, the Management Board of the Institute may issue a write-off decision to partly or fully release the beneficiary of the obligation to reimburse the allocated funds. II TRANSITIONAL AND FINAL PROVISIONS Article 84 The contracts that are still valid and were concluded with funding beneficiaries before entry into force of this Rulebook shall be governed by the provisions of the Rulebook previously in force. 23

24 Article 85 Upon entry into force of this Rulebook, the Rulebook on the use of funds of the PI Employment Institute (Official Gazette of the Republic of Srpska 100/11, 126/11, 42/13 and 54/14) shall cease to have effect Article 86 This Rulebook shall enter into force on the eighth day following its publication in the Official Gazette of the Republic of Srpska. Number: 01.6/ /17 Date: 23 February 2017 Chairman of the Management Board Boško Tomić 24