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.

Use of measure

The number of people in short-time transfer work fluctuates throughout the year. In March 2019, the number was 7,217 people in short-time transfer work. In March 2020, the number rose to 9,000 and rose further to 21,500 in March 2021. In March 2022, the number then fell again to 14,500 and to 6.800 in March 2023 (according to the most recent figures) (BA 2023).

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	Employer 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

Involvement

Unknown

Views and reactions

Unknown

Sources

• 01 January 2022: Federal Employment Agency Information Leaflet. (www.arbeitsagentur.de)
• 13 October 2022: 2022 BA - Transferkurzarbeitergeld (statistik.arbeitsagentur.de)
• 18 July 2024: Realisierte Kurzarbeit - Abgänge aus Transferkurzarbeit - Deutschland, West/Ost und Regionaldirektionen (Zeitreihe Monatszahlen) (statistik.arbeitsagentur.de)