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Factsheet for measure DE-1998-1/2502 Updated – measures in Germany

Transitional employment agency or transitional company

Transfergesellschaften, Beschäftigungs- und Qualifizierungsgesellschaften

Country Germany , applies nationwide
Time period Open ended, started on 01 January 1998
Context COVID-19, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Protection of workers, adaptation of workplace
– Changes of working hours or work arrangements
Author Birgit Kraemer (Hans Boeckler Foundation) and Eurofound
Measure added 23 June 2022 (updated 10 November 2022)

Background information

In case of business alterations and planned dismissals, the employer together with the works council may under article 111 Social Code Book III decide on establishing or involving a transfer agency for supporting to-be-dismissed workers in finding new employment.

The main purpose of transfer agencies is support in finding new employment via job placement, advice and guidance and provision of further or vocational training.

Content of measure

Management and works council have to sign a contract with the transfer agency. Workers affected by collective dismissal are individually asked whether they agree to transfer to the transfer agency. A new fixed-term employment contract (12 months duration) with the transfer agency is concluded. Over the duration of this fixed-term contract the federal employment agency carries the worker's wage by providing short-time working allowance.

The level of the transfer short-time work allowance is 67% of the previous wage for parents and 60% for workers without children. In case of agreed supplements by the previous employer, the worker may reach net income levels between 75% and 90% during the transfer period. If the employee participates in a necessary transition measures, the local labour agency provides a grant of 50% for the expenditures and a maximum of €2,500 per employee participating in such measures. Further expenditures have to be borne by the employer.

Before agreeing on involving a transfer agency, management and works council are obliged to report to the employment agency and to use the employment agency's advisory service.


The following updates to this measure have been made after it came into effect.

13 October 2022

The number of people in short-time transfer work fluctuates throughout the year, but has risen steadily over the years. In March 2020, the number was 9,000 people in short-time transfer work. In March 2021, the number rose to 21,500 and then fell again to 14,500 in March 2022 (according to the most recent figures) (BA 2022).

Use of measure

In November 2019 (according to the latest available data), 8,549 workers were employed by transfer agencies. The number of workers employed by transfer agencies decreased from nearly 15,000 people in December 2013 to 10,600 in September 2017.

Target groups

Workers Businesses Citizens
Employees in standard employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Employers' organisations
Local / regional government
Public employment service
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown



Views and reactions




Eurofound (2022), Transitional employment agency or transitional company, measure DE-1998-1/2502 (measures in Germany), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.