Document No. 1 (2002) issued by the Skills Development Division of Shanghai Municipal Labour & Social Security Bureau on January 8, 2002 All district, county labour & social security bureaux and relevant organisations: In order to improve the practical skills of the young unemployed, enrich their working experiences and enhance their employability so as to solve the structural problem of labours of the municipality, Shanghai labour & social security authority, in accordance with the instruction of the Municipal Party Committee and the Municipal government, launches the Apprenticeship Training Subsidy Programme for the unemployed young people during “the Tenth Five-Year Plan” period. The Programme is keen to organize the young unemployed to receive apprenticeship training in enterprises for a certain period of time. As extension to vocational training, the government will subsidize the apprenticeship training. In order to carry out the Programme effectively, a pilot programme will be carried out, then be replicated to the whole city. The attached is the Provisional Plan on Implementing the Youth Apprenticeship Training Subsidy Programme. You are expected to pay high attention to it and implement it. The Provisional Plan on Implementing the Youth Apprenticeship Training Subsidy Programme In order to help the young unemployed improve their operational skills, accumulate working experiences to enhance their employability, the government launches the Apprenticeship Training Subsidy Programme for these young people. The provisional plan for implementing the Programme as follows: I. Subsidy for the apprenticeship training The Programme is keen to organize the young unemployed to receive apprenticeship training in enterprises for a certain period of time to improve their operational skills, enrich their working experiences and increase their job adaptability so that they will find jobs soon. During the apprenticeship period, the host organizations will not establish labour relations with the trainees. The government will use the unemployment insurance fund to subsidize the apprenticeship training. The subsidy covers the living expenses of the trainees, training expenses of the host organizations and the comprehensive insurance premiums during the apprenticeship period. II. Eligible candidates for the apprenticeship training subsidy Those unemployed young people, with permanent residence of the city and corresponding vocational qualifications, aged between 16 and 25 (if necessary, it can be extended to 30 years), having qualified guarantor guarantee, are eligible to apply for the apprentice training subsidies. III. The cover of the subsidy The subsidy covers: (1) monthly living expenses of trainees, equal to 70% of the monthly minimum wage of the city. During the apprenticeship period, trainees are not entitled to unemployment insurance benefits any longer. (2) the training expenses of the host organization. The amount of the subsidy shall be negotiated by the labour & social security authority and the host organization according to the technical quantity of the training posts, and training conditions. (3) the comprehensive insurance for the trainees during the training period. IV. Host organisations and the trades for apprenticeship training Host organizations and the trades for apprenticeship training shall be defined and publicized regularly by the Municipal Apprenticeship Training Subsidy Coordination Group. The trades defined for apprenticeship training should be those requiring intermediate and senior technical skills, being highly skillful and operational, and highly marketable in labour market in major industrial sectors. The host organizations should be enterprises that are well-known in major industrial sectors, are capable of providing apprenticeship training and willing to support the government programme. Host organizations will be identified and assessed by the Municipal Apprenticeship Training Subsidy Co-ordination Group. The enterprises identified by the Committee will be awarded as the Host Orgranisations for Apprenticeship Training by the government. Unqualified host organizations assessed will be suspended. V. Apprenticeship training period The apprenticeship training generally lasts 3 to 6 months, and can be extended in special circumstances with the approval of the Coordination Committee, but it shall not exceed maximum 12 months. Trainees shall receive training in this specified period of time. Drop-outs shall be treated as in breach of the agreement. VI. Implementation of the apprenticeship training 1. apprenticeship enrolling Eligible apprenticeship training candidates, in principle of willingness, can submit the application materials, apprenticeship guarantor certificate and other relevant materials to the training division of the local job agency for enrolling. The job agency shall recommend the candidates to the host organizations in the light of enrolling and trades for apprenticeship and host organizations publicized. Then the host organization will interview and select trainees. 2. Concluding Apprenticeship Training Agreement Job agencies, candidate trainees, and host organizations shall conclude apprenticeship training agreement prior to the training. The agreement should define (1) duration of the apprenticeship training; (2) trades (posts) for apprenticeship training; (3) apprenticeship training subsidy standards; (4) apprenticeship training schedule; (5) the respective responsibilities of the recommending agency and the host organizations; (6) the rules the trainees should follow; (7) other matters to be agreed upon. 3. Carrying out apprenticeship training According to the agreement, the trainees shall go to the host organizations to receive apprenticeship training. At the end of the training, the host organization shall, on the basis of certain form of exams, make performance appraisal for each trainee and fill in the uniformed Trainee Appraisal Form. The trainees shall, on the basis of apprenticeship training arrangement and mentoring of the host organizations, fill in the Host Organisation Assessment Form. 4. Claiming and appropriating the apprenticeship subsidies The apprenticeship subsidies shall be claimed and granted monthly. The host organizations shall apply to the local district or county job agency. Checked by the job agency administration, the unemployment insurance administration shall appropriate the subsidies. VII. Others (1) In order to strengthen coordination and administration of the apprenticeship subsidies, Shanghai Labour & Social Security Bureau will set up the Municipal Apprenticeship Training Subsidy Coordination Group to take charge of making apprenticeship training subsidy policy, identifying trades for apprenticeship and host organizations, guide and coordinate the daily affairs. The Group is consisted of Skills Development Department, Employment Department, the Municipal Vocational Training Orientation Center, the Municipal Job Agency, the Municipal Unemployment Insurance Administration Center, the Municipal Skills Testing Center etc.. (2) The apprenticeship training subsidy programme will carry pilot project in certain districts and trades, then it will be replicated to the whole city when it is mature.