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← Overview Database of Innovative Social Policies in Europe

Job tranfer support

Country of implementation
General short description of the innovation
Since 1988, workers about to become redundant may receive income support from the unemployment insurance fund even before they become unemployed. This originally ‰passive¡ instrument has been repeatedly amended in order to more actively support the transfer into new jobs. In the two most recent rounds of reform taking effect in 2011 and 2012, control of the public employment service over an instrument originally largely at the disposal of the social partners has been strengthened. Just like any provider of employment-related services, providers of outplacement services must now undergo accreditation both as organizations and of the services they intend to deliver. Participants in job / transfer schemes must register with the public employment service as jobseekers.
Target group
Total Population
Policy Field
  • employment
Type of Policy
  • private for profit
  • publicly mandated to non-state organisation
Duration of the policy
Scope of innovation
  • Budgets: no fixed budget ¤ legal entitlements must be met
  • Number of intended beneficiaries: No target ¤ beneficiaries are entitled if certain requirements are fulfilled. Empirically, the numbers of beneficiaries (monthly stocks) differ between 35 ,000 (beginning of 2010, time-lagged effect of the 2008 financial crisis) and 10,000 (beginning of 2012). There will be more beneficiaries if Germany were to undergo another wave of company restructuring
  • Spatial coverage: national
General description of (intended) objectives and strategies
The general philosophy of job transfer schemes is to help redundant workers finding new employment before their contract ends and before they become unemployed. In order to achieve this goal, they will receive counseling and job placement services and possibly short-term training. Using short-time working allowances, employment status can be prolonged by using ‰transfer companies¡ as temporary substitute / employers. By externalizing redundant workers to ‰transfer companies¡, possibly even before their notice periods would end, companies undergoing restructuring or insolvency procedures may increase their chances for a turnaround by shortening their payrolls.
Nature of the innovation-short-term perspective
This innovation has developed very gradually since 1988, with the last changes taking effect as of 2012.
Type of ideal-typical strategy for the innovation
  • typical strategy for the innovation (optional; according to Obinger)-flexicurity
Type of innovation
  • new policy, practice or measure
New outputs
  • job guidance, coaching and/or counselling
  • lifelong learning
  • others (facilitating corporate restructuring )
Intended target group
Workers about to become redundant as a result of downsizing, restructuring, closure or bankruptcy
Working age population
  • main source of income: paid work
Employers-private institutional actors
It is employers (in the process of downsizing, restructuring or insolven cy) who commission providers of job transfer schemes
Actors involved in policy-making/implementation and/or evaluation
  • making/implementation and/or evaluation-agency or national social insurance body
  • making/implementation and/or evaluation-employees (organised or individual)
  • making/implementation and/or evaluation-employers (organised or individual)
  • making/implementation and/or evaluation-private for-profit organisations (commercial) (As service providers and possibly temporary substitute employers )
Intended output
  • job guidance, coaching and counselling
  • lifelong learning
Intended and unintended outcomes
Only small proportions of the intended target group are actually covered since the implementation of the scheme depends, in practice, on the existence of works councils and their activities. Consequently, only larger firms are covered in practice even though smaller ones would also be eligible
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