In view of the disparity in the concept of sheltered employment throughout the European states, a broad view of what constitutes sheltered employment has been adopted in this study which complements that carried out by the same authors commissioned in 1992 by the European Economic Commission in the then twelve EEC member states. A part from a comparison of sheltered employment in five countries - Austria, Finland, Norway, Sweden and Switzerland - the report also deals with the transition from sheltered to ordinary employment.