R-license for personal assistance

R-License for the Personal Assistance Sector: Stricter Requirements for an Industry with Particular Responsibility

Personal assistance under the LSS Act is one of society’s most important responsibilities. It is provided in people’s homes, in close and often long-term relationships, and is ultimately financed by public funds. This combination of proximity, continuity, and taxpayer funding places high demands on the companies that choose to operate in the sector.

For this reason, the R-License imposes additional requirements on personal assistance providers that wish to carry the certification, beyond the general requirements concerning ethics and responsible conduct that apply to all R-License holders.

An industry where not everything is as it should be

The personal assistance sector includes many reputable providers that deliver life-changing services every day. At the same time, the industry has repeatedly faced problems: unethical customer acquisition, ownership structures in which money is taken out of companies faster than it is brought in, marketing methods that resemble direct sales more than the provision of information, and companies that fail to ensure that resources actually reach the assistance services.

For reputable providers, this presents a challenge. How can a customer, municipality, relative, or legal guardian distinguish a long-term, trustworthy company from one that is not? The R-License’s stricter requirements for the personal assistance sector are intended to answer that question.

What the stricter requirements include

The additional requirements cover areas in which the industry has historically had weaknesses. They are formulated as a unilateral commitment by the company. It is the company that undertakes to comply with the conditions in order to obtain and retain the license.

Stable and engaged ownership. At least 51 percent of the company must be owned by individuals who are operationally active in the business, for example as members of the management team or board of directors. The company must operate as a limited liability company and may not be publicly listed. The business must have been operating for at least five years.

Restrained profit-taking. The average operating profit over the past five financial years may not exceed ten percent of turnover. Salary costs, including payroll-related costs, must amount to at least 86 percent of turnover. Together, these two requirements ensure that the majority of the funds go where they belong: to the personal assistants.

Sound finances and collective agreements. The company may not have any records of non-payment and must be covered by an applicable collective bargaining agreement.

Respectful marketing. The company may not use rewards or gifts to entice customers to switch providers, use public registers for targeted marketing campaigns, operate reward schemes for recruiting new customers, or engage in door-to-door solicitation, telephone calls, or mass mailings without the customer’s explicit consent. All contact with potential customers must be characterized by understanding, tact, and respect.

Reasonable contract terms. The service agreement with the customer may not impose a notice period of more than three months on the customer. No one should have to remain tied to a company they no longer wish to use.

Quality work must be prioritized. More than 30 percent of the administrative staff must work operationally with service quality for the customer, meaning that they plan, structure, and manage the assistance provided around the customer. This is a measurable requirement ensuring that administration exists to support the service, not the other way around.

Transparent reporting on the website. The company must openly present its administrative staff, including photographs and job titles, so that it is clear who is responsible for what. The company must also publish its three most recent annual reports, a quality report, a customer survey no more than two years old, an employee survey among personal assistants, and the results of the periodic R-License survey.

What this means in practice

For customers, relatives, and legal guardians, the requirements mean that it is easy to verify how a company actually operates, without having to ask or search for the information. Photographs and job titles on the website show who works in which roles. The annual reports show where the money goes. The surveys show what personal assistants and customers themselves think.

For personal assistants, the requirements mean working for an employer that has a collective bargaining agreement and a cost structure in which wages are prioritized.

For commissioning bodies and partners such as municipalities, regions, and family or advocacy organizations, the requirements provide a quality indicator they can rely on.

The R-License for the personal assistance sector is not a guarantee that everything will always be done correctly. No quality assurance system can provide such a guarantee. But it confirms that the company has taken a clear position and that an independent party monitors whether it continues to meet its commitments.