LAMAS January 2016 Agenda Item 3.2 Labour Cost Survey (LCS) Eusebio Bezzina

Main items discussed: Follow-up to the workshop on Labour Costs (May 2015, Rome) Preparation for LCS2016 Next update of Quality Reports in ESS-MH

I. Workshop on Labour Costs - follow-up (i) Definition and measurement of hours paid Only those paid by employers or also those paid (partial/full) by the social security system in the country (directly/reimbursed)? -> Labour cost is about costs employers face for employing labour i.e. in case of full payment by social security = out of LCS scope -> In case nothing is paid by the employer / social security no hours are paid (0), so zero hours paid to be recorded When a ratio is paid by the employer and social-security ex. 75% paid by social security, 25% paid voluntary by the employer -> if employer pays his 25%: 100% of corresponding hours are recorded -> if employer does not pay his 25%: zero (0) hours paid to be recorded. In the case 100% is paid by social security; nothing is paid by the employer. Hence zero hours paid to be recorded.

I. Workshop on Labour Costs - follow-up (ii) Borderline between labour costs and social benefits Payments for former / retired employees -> if employee is already retired at the beginning of reference year =out of LCS scope -> if employee retires during reference year; distinguish between: pension benefits (not to be recorded in LCS) and extra payments such as severance pay (wage costs or imputed social contributions depending on case; variables D.122 and D.1223)

I. Workshop on Labour Costs - follow-up (ii) Borderline between labour costs and social benefits Sick leave, maternity and parental leave payments made by employers, to be recorded (less social-security reimbursements), even if no hours are worked during the reference period If payments are partially or fully financed by social contributions: -> out of LCS scope if they are 100% financed by social security (no cost for the employer) -> when a ratio is paid by the employer and social security, corresponding 100% of hours paid to be recorded

I. Workshop on Labour Costs - follow-up(iii) Distinguishing between apprentices and trainees Possible confusion between trainees / apprenticeship contracts Questionnaire launched with DESTATIS to find out / clarify issues Outcome Countries in which A13 definition captures a broad concept AT: Apprentices (3.60%) / Trainees (0.60%) DE: Apprentices + certain trainees (4.60%) / other trainees (0.50%) IE: Apprentices + Trainees (1.02%) -> split not available EL: Apprentices + Trainees (0.59%) -> split not available NL: Apprentices + Trainees (1.22%) -> split not available IS: Apprentices (0.39%) / Trainees (0.43%) NO: Apprentices + Trainees (1.66%) -> split not available TR: Apprentices + Trainees (1.00%) -> split not available In green: will be able to split between apprentices/trainees in LCS2016 In red: improvement cannot yet be established since split is not available at national level, although the operational definition might be a first step towards improvement. Countries that do not deliver data on apprentices: BG, ES, LV, SI, EE, HR and SE report NA or ZEROS in the variables that concern apprentices. These countries are invited to review their methods in order to isolate apprentices in the future unless they can demonstrate that apprenticeship contracts do not exist.

I. Workshop on Labour Costs - follow-up(iii) Distinguishing between apprentices and trainees -> An operational definition established for possible improvement -> Ensure apprentices data does not include any form of traineeship An individual to be classified as apprentice if these criteria are met 1. Employment contract exists between individual and enterprise; 2. Individual receives remuneration in the form of wage or allowance; 3. Educational programme < 6 years and leads to formal qualification; 4. Apprenticeship contract > 6 months; 5. Alternance between practical training at workplace and general/theoretical education in educational institution/training centre on a weekly/monthly/yearly basis A Traineeship is another form of vocational training offering practical experience at the workplace which corresponds either to a component of a formal education programme or to a non-formal training activity organised by an education, training or employment institution; defined in a training contract or formal agreement between the trainee and the employer directly or via an institution; offers paid or unpaid vocational training to students but also to unemployed or inactive persons for a limited period of time; duration of the contract or formal agreement is at most 2 years.

I. Workshop on Labour Costs - follow-up(iii) Distinguishing between apprentices and trainees

II. Preparation for LCS2016 Implementation documents Final version sent to NSIs + LAMAS on 5 October 2015 EU deadline for data transmission: 30 June 2018 [Article 9 of COUNCIL REGULATION (EC) No 530/1999 of 9 March 1999] NSIs should inform Eurostat immediately in case of: -> serious issues affecting timeliness are encountered -> change of LCS responsible / contact person

III. Update of Quality Reports in ESS-MH Standardised Structure of Quality Reporting in ESS Metadata Handler (ESS-MH); Replaces EMIS (Eurostat) and NRME (NSIs) as well as the "old" format of collecting Quality Reports (e-mail); Spring 2015: LCS2012 Quality Reports (pdf/word) mapped into ESQRS structure and imported in ESS-MH AT-CH-DE-FR translated into English, proofread by NSI Summer 2015: ESQRS files validated by NSI, ESTAT + published on Eurostat website

III. Update of Quality Reports in ESS-MH Way forward (LCS 2016) Since LCS reference year 2008 (in NACE Rev2) data are published under same branch on Eurostat website -> same as for metadata Direct update to current ESQRS file (last update for LCS2012) should be revised and adapted to reflect metadata in LCS2016 Important to highlight differences and comparability over time, (compared to previous vintage/s) under chapter 16.2 Send updated file to ESTAT for validation and publication

The LAMAS delegates are invited to: Take note of the methodological clarifications made at the workshop on Labour Costs; Take note of the instructions on how to update the Quality Reports for LCS2016 in ESS-MH;

Thank you for your attention! Eusebio.Bezzina@ec.europa.eu