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RULES OF PROCEDURE

The Rules of Procedure for the Vocational Training Fund for Shop and Office Workers Valid from 1 January 2014

Individual Grants

1. The formation of the rights of individuals

In order to be able to apply for a grant from the fund, an individual's membership fee and employer's premium must have been received for three months of the last twelve months, of which at least for one month of the last six months. All rights lapse when membership fees and employer's premium have not been received for the last six months.

 

A member with wages that are equal to or higher than the starting wages of sales staff in stores, according to the collective wage agreement between VR/LÍV, is entitled to a maximum grant of ISK 180,000 per calendar year.


Entitlements to a grant are calculated as a percentage of a member’s wages of the starting wages of sales staff in a 100% position over a 12-month period. The calculation of entitlements is based on the final month of the above period being two months before the application is received. For example: An application is submitted in April – The calculation of entitlements starts in February that year and includes the previous 11 months.


If the applicant’s premiums are in arrears and the applicant is the employer’s representative, spouse, relative or otherwise closely related, the fund is not permitted to pay grants to the fund member.

 

1.1.  Formation of the rights of individuals who are temporarily out of the labour market

Anyone who pays a membership fee and is looking for work, on maternity and parental leave or receives sickness per diem from a trade union within LÍV retains their rights while membership fees are received by the trade union.

 

1.2.  The rights of individuals leaving the labour market 

Those who have begun receiving old-age pensions, receive rehabilitation pension or a disability pension retain full rights in the fund for 12 months from the cessation of payments from the employer and retain rights for 36 months for leisure grants. Entitlements are based on the last payments from the employer to the fund. Continued payment of membership fees from old-age pension, rehabilitation pension or disability pension does not maintain rights to the fund.

 

 

2. The amount of vocational training grants to individuals and what is considered eligible

A vocational training grant is paid up to a maximum of ISK 180,000 per year, but never higher than 90% of the tuition/participation fee. 

 

a) Vocational training grants include job-related courses, work-related online courses, studies for credits and qualifications, real skills assessment, job-related conference fees abroad and domestically, domestic self-empowerment courses and language studies. Management training and work-related life coaching, up to a maximum of 12 hours within a calendar year, is also covered by work-related grants. The invoice for management training and job-related life coaching must state that the training is work-related and the number of hours.

 

b) The fund is not intended to support physical exercise, training fees or courses that aim to work with the loss of health of individuals. Courses that are part of treatment options for loss of health are therefore not specifically funded by the Vocational Training Fund.

 

c) Job-related online studies: Individual course or subscription to a website / content provider with work-related courses. It is not possible to apply for a grant for the purchase of software, even if study materials are included.

 

d) For job-related conferences abroad and domestically, the agenda of the conference must be included in the application as well as a link to a website. The conference must have an organized agenda that includes job-related lectures. Reasons for connection to work must also be included if it is unclear. Only the conference fee is eligible.

 

 

2.1. Accumulated grant

If a member has not received a work-related grant from the fund in the previous 36 months, the accumulated grant for work-related studies/course can be a maximum of ISK 540,000 per year, but never higher than 90% of the tuition/participation fee for one consecutive study course. The grant can only be applied for as a lump sum.

 

a) Payments to the fund must have been received for a minimum of 30 months out of the previous 36 months before the date of application and in addition fulfill the conditions of the first paragraph of these Rules of Procedure. It is based on the starting salary of sales staff in a 100% position during the period.

 

b) The remainder of the ISK 540,000 accumulated rights to work-related studies can be used for travel grants, cf. item D in Article 2.3.

 

2.2.  Leisure grant

A 50% grant is provided for the course fee for leisure courses up to a maximum of ISK 40,000 per year. The amount is deducted from the maximum grant each year, but it does not affect accumulation. Leisure grants only cover domestic leisure courses.

 

2.3.  Travel grant

A 50% grant is provided for travel and accommodation costs up to a maximum of ISK 50,000 per year when a member attends work-related studies, courses, a work-related visit to a company or a conference outside the legal domicile. The travel grant is deducted from the annual maximum grant. No grant for living expense is provided. 

 

a) The distance between the place of residence and the educational institution must be at least 50 km.

 

b) If the person in question travels in their own car, they can apply for a travel grant, which amounts to 50% of the kilometre fee. The calculation of the kilometre fee is based on the driving fee of the Ministry of Finance and Economic Affairs at any given time. Applications for travel grants for personal vehicles must be accompanied by:

 

The number of kilometres each time and the date of travel,

confirmation of attendance on the days when a travel grant is applied for.

 

c) For applications for work-related visits, the following must accompany the application:

 

Itinerary of the trip, which states which locations are visited, what the content of the presentation is in each location and the times,

confirmation of a member’s participation in the form of a signed letter from the trip supervisor or administrator. The letter shall describe the trip and explain its purpose.

 

d) The remainder of the ISK 540,000 accumulated rights to work-related studies can be used for travel grants up to a maximum of ISK 150,000 but not more than 50% of the travel costs.

 

e) Disabled members who need an assistant to seek grant-eligible education or educational trips, receive an additional travel grant for the assistant, to which the same criteria as for the member, applies. Documents that show the need for such services shall be included in the member’s grant application. 

3. Individual application – documents and process

The applicant must fill in the application either electronically or on a form that can be obtained from the fund’s member associations or on the fund’s website www.starfsmennt.is. Applications must be submitted to the relevant trade union.

 

a) An application for a grant must be accompanied by a certified invoice paid in the name of the member, stating the following items:

Course description,

member name and ID No.,

educator name and ID No.,

date of payment.

 

b) It is not possible to apply for a grant if the invoice is older than 12 months from the date of application or issued before the applicant becomes a member.

 

c) It is not possible to apply for a grant more than once on the same invoice.

 

d) Information on applications for invoices issued in languages other than Icelandic or English must be translated into Icelandic or English for the Fund to process the application.

 

e) Only payment receipts that show confirmed transactions/payments from an Icelandic bank account/payment cards to the education provider in question, are accepted. The fund does not accept payment receipts for education/courses that have been paid in cash. 

4. Invoice payer

A condition for a work-related grant, leisure grant and travel grant is that the member submits a paid invoice with the application and pays for their participation themselves. An exception is made for applications for joint grants from a company and an individual, cf. Article 9.

5. Definitions and conditions of course

The fund’s criteria for defining the term course are as follows:

 

A specific area of studies that follows a pre-determined plan or definition and usually ends with a certification of performance or another type of confirmation.

Counselling, personal plans and supervision do not meet the requirements of a course on the part of the fund.

 

The conditions that a course must meet in order to be called a course by the fund are:

 

A defined beginning, end and advisor;

information on the course must be accessible;

the course must be publicly accessible.

6. Not eligible

Grants are not provided for living expenses, sales/product exhibitions, vocational training, treatments, guidance, psychological support, counselling, private lessons in other than language courses, self-empowerment courses abroad, leisure courses abroad, annual fees, books or study materials, courses that have the purpose of preparing individuals for certain events/competitions. 

Company Grants

7. Development of Company Rights

A company has the right to a maximum of  ISK 4 million per calendar year. Grants awarded amount to a maximum of 90% of work-related course, study, and conference fees. The maximum grant amount is ISK 390,000 per person who belongs to VR/LÍV.

 

a) Companies that have paid contributions to the Fund for 12 consecutive months as of the date of application and are not in arrears are eligible to apply for a grant.

 

b) Companies may not apply for travel or leisure grants. In all other respects the same criteria for the processing of grants apply to companies as well as individuals, cf. Article 7.

 

c) If a company receives a grant, no individual who works for the company may apply for a grant for the same course unless applying for a joint grant, cf. Article 9.

 

d) It is not possible to apply for a grant if the invoice is older than 12 months from the date of application.

 

e) The Board is authorised to grant a special exemption from these provisions if the project involves entrepreneurial work or innovation.

 

f) The Board is authorised to condition the awarding of grants.

 

g) In applications for company grants, the paid invoice must be in the name and ID. of the company.

8. Company application – documents and process

Companies fill out an electronic application on www.attin.is The application must include a description of the educational project for which a grant is sought, its organisation, cost, and a list of participants including names, ID numbers, and participants’ union membership.

9. Joint grant for individual and company

Union members and companies have the option of applying for a joint grant from the Fund if a member’s studies cost ISK 200,000 or more. An exemptions to this amount is only made for Diploma in Business Administration and Retail Management applications. Applications are processed in accordance with the Fund's rules on eligibility criteria.

 

a) Members apply for joint grants through their union. Applications must include:

 

Paid invoice,

description of studies,

and a signed declaration from the company. The declaration must state that this is a joint application and that the studies are part of the individual’s career development plan.

 

b) Upon approval of the application, the grant amount is deducted from the rights of both the member and the company, and the grant is paid into the accounts of both.

 

c) The maximum grant may amount to a total of an individual’s and company’s maximum right, but may not exceed 90% of the cost of tuition.

10. Company e-learning subscriptions

Subscriptions to a company’s e-learning system are eligible for a grant of 90% of the invoiced amount but may not exceed ISK 6000 per member per year. A condition is that a subscription contract is agreed upon and paid for at least 6 months.

Applications must include a report that addresses the following:

A description of the education or training offered via e-learning environment,

how educational or training materials are prepared for use,

how educational or training materials are accessed/purchased or developed,

how the company intends to present the material to employees,

and when and how employees are intended to utilize the education or training.

11. Company subscription of digital learning packages

Company subscription of digital learning packages is eligible for a grant of 90% of the invoiced amount. Grants for such learning packages can only be applied for after 6 months of a current subscription have passed with visible company activity in purchased packages. *

Applications must include a report that addresses the following:
The company’s education and training programme
How the company intends to present the material to
certain groups within the company
What education and training** has been conducted using a subscription and what
education and training is planned for specific groups within the company
When and how employees are intended to utilise
the education or training
Demonstrate that 80% of members have taken part in education or training
as a part of the career development of employees
In addition general application conditions apply as well as supporting documents.

 

*Not applicable when learning packages are purchased for individual employees.
**courses, sprints, specific packages, or other falling under education or training.

 

Rule 11 does not apply to company subscription of Icelandic language apps. The Fund’s general allocations rules apply in the processing of such applications.

 

12. Company grants for the development of learning material in an e-learning environment

Companies that create their own electronic learning material in an e-learning environment for SVS members may apply specifically for a grant from the Fund for the development of learning material. The Fund awards a grant of up to ISK 400,000 for the development of a company's own learning material. A maximum of four grants per calendar year are awarded for the development of learning materials. The grant is calculated according to the proportion of SVS members in the learning material’s target group and is based on 90% of the invoice amount.

 

Criteria and supporting documents:

An e-learning environment must be in place at the company

Detailed course description and manuscript

Information about the course’s target group

Number of hours spent developing learning material

13. Exemption from full contributions - eligibility

Companies may apply to reduce the contributions that they pay into the Fund from 0.3% to 0.1% provided that the following conditions are satisfied:

The company must be the buyer of the courses in question (an exception is made in the case of a joint grant for an individual and a company, cf. Article 9,)

the company’s education and training program is available,

the company has stated an active educational policy and employees who belong VR/LÍV have the option to attend the courses offered. The Fund reserves the right to verify the company's education policy,

offering both professional and general courses.

The following must be available whenever a company uses an in-house e-learning environment:

A clear web management system for electronic education and training,

over 80% participation by VR/LÍV members in the e-learning environment,

ease of access and preparation for participation in the e-learning environment.

The cost of education and training for VR/LÍV members over a 12-month period (less wage, travel, food, and accommodation expenses,) exceeds 0.30% of their total salary during that period. (In cases where this amount is not reached, special consideration is paid to the e-learning environment and its implementation within the company.)

The company must not be in arrears with the Fund and has paid contributions for the past 12 consecutive months as of the application date.

Companies paying reduced contributions may not apply for other grants from the Fund. (Companies paying reduced contributions may apply for a joint grant, but the grant is not paid by the Fund. The grant must instead be listed separately as an itemised expense.)

 

13.1 Application for reduction of contributions - documents and process

Applications for a reduced contribution must include:

An itemised overview of the company’s education and training expenses for VR/LÍV members over the last 12 months, and the number of participants of both in-house education and training and those services purchased externally. It is important that the information requested is delivered to the Fund in a clear manner. We recommend using the Fund’s application form.

An education and training program for the coming year, either a curriculum or other comparable document verifying that an active educational policy is in place, cf. Article 19.

Application renewals require, in addition to the above documents, information about VR/LÍV member participation and the company's total expenses incurred by their education and training since the previous application.

 

If the Board approves of a reduction of contribution payments from 0.30% to 0.10%, the reduction comes into effect at the beginning of the month following approval and remains in effect for one year. If the company renews its request for an exemption, that exemption is in effect for two years at a time. Required documentation must accompany every request for exemption. Renewal applications must be submitted to the Fund at least one month before the current exemption expires, thereby increasing contributions to 0.30%.

Other grants

14. Development grants - eligibility

The Fund awards development grants to companies, education/training providers accredited by the Ministry of Education, Science and Culture, and specialists from the university community.

 

a)Innovation and development projects with application potential in other areas, projects of use within the union, and research on industry affairs are given priority.

 

b)Applications must be submitted via the Fund’s application form.

15. LÍV affiliate rights

The Fund subsidises education and training held by LÍV affiliate unions on behalf of their members. The grant may amount to a maximum of ISK 500,000 per year, but never exceeds 50% of an affiliate's annual contribution. The Fund’s allocation rules apply and are upheld.

Terms and conditions

16. Formulation of rules

The Board is authorised to formulate rules of procedure according to the Fund’s experience and activities as applicable.

17. Who can apply for a grant

The Fund awards grants to individuals and companies in order to fulfill the Fund’s aim, cf. Article 2. Regarding the Fund’s resolution.

18. Fund management

The Board delegates its daily management to VR, according to Article 5.6 of the Fund’s resolution to agree in writing with affiliate unions regarding the collection of contributions.

19. False/misleading information and its consequences

Members who provide false or misleading information and/or withold necessary information forfeit their right to a grant. Members may be required to repay the full grant amount plus penalty interest.

20. Amendments to rules

The Board reserves the right to amend these rules without notice.

These Rules were approved at the meeting of the Board of the Vocational Training Fund held on 4th September, 2013. Revised 21th February, 2024.