Capital allocated to financing the personal or professional development of adults, for example to:
- ensure vocational integration / reintegration on the labour market;
- improve or update knowledge, know-how, skills or competences (upskilling);
- acquire new skills for a career move (retraining / reskilling); By extension, body responsible for managing this capital.
By extension, body responsible for managing this capital.
Comment
- Governance and management of training funds can be organised at:
- sectoral level: these funds are generally managed by social partners as part of collective sectoral agreements;
- national level: some countries created a single national training fund, governed by the State, often in partnership with social partners; the (compulsory) level of contribution can be set at national level, with funds distributed through organisations operating at sectoral level;
- interprofessional level: funds are linked to a particular sub-field of the economy or a particular occupational field;
- contributions to training funds can be collected in different ways:
- systematic contribution: the training funds collects money from all companies in a given economy or sector (‘levy-grant’ mechanism);
- selective contribution: the training fund collects money only from the companies which do not meet a predefined minimum level of training activity/contribution (‘train or pay’ or ‘levy exemption’ mechanism);
- redistribution of funds collected can be:
- supply-driven: the fund finances training providers (public institutions, organisations run by employer associations and/or trade-unions, private providers) or specific training programmes; companies or individual workers / job-seekers profit from the training provision at no cost or with low fees;
- demand-driven: the fund covers all or part of the cost of a training at company or individual worker level.
Source
Cedefop; le Robert.