European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Social Code Book III, §136
Under the Social Code Book III redundant workers are entitled to unemployment benefits (Arbeitslosengeld).
Workers who will be dismissed have to announce their dismissal to the employment agency at least three months before the termination of their contract, otherwise the benefit will not be paid in due time. They have to register with the agency immediately after the end of their contract and declare themselves willing to cooperate with the agency, to accept reasonable job offers and to be available for work.
Redundant workers with children receive 67% of net earnings, while those without children receive 60% of net earnings. The duration of benefits depends on the length of the employment period during which social security contributions were paid as well as on the age of the recipient. Workers aged 58 years and older having worked more than two years receive benefits for a maximum duration of 24 months.
The benefit will not be granted for a period of up to 12 weeks (Sperrzeit) if, without an important reason, the redundant worker fails to register promptly as a job seeker, refuses reporting obligations, refuses to turn up for appointments with the agency and to accept job offers assigned to them. The provision of the benefit depends on their attested willingness to take up jobs which may pay less than their previous job.
However, during the first three months of unemployment, job offers are considered unreasonable, if the salary to be earned is more than 20% below the salary that was taken into consideration for calculating the unemployment benefit. This threshold is increased to 30% between the fourth and sixth month of unemployment.
Redundant workers receiving the unemployment benefit may ask for career counselling. Here, the main support instrument are online portals on job offers and training offers.. Recipients of the unemployment benefit as well as workers at risk of dismissal may apply for a further training voucher. In case of approval the voucher may cover:
The employment agency may approve that the unemployment benefit can be drawn for the time of further training. In this case two months of training reduce the overall duration of eligibility of the unemployment benefit by one month.
Following on the termination of the unemployment benefit, job seekers receive the so-called citizen benefit (formerly known as unemployment benefit II or Hartz IV). The citizen benefit is is a tax-based, means-tested basic provision. To view the current benefit amount, visit the Federal Ministry of Labour and Social Affairs New rules regarding the citizen benefit took effect on 1 January 2023 and are in comparison to its forerunner, the unemployment benefit II, less strict. For example: costs for a rented flat as well as heating costs are covered to a reasonable extent during the first 12 months of receiving the citizen benefit. Also, private assets are only taken into account during the first year if they are substantial. Recipients of the citizen benefit can also participate in training courses or use coaching sessions to improve their labour market prospects.
Eurofound (2015), Germany: Redundant employees entitlement to public support, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/redundant-employees-entitlement-to-public-support/germany
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