Unemployment Benefit

Unemployment benefit is an insurance benefit

Unemployment benefit is a benefit employees receive because they previously paid into the unemployment insurance. Any assets you hold therefore do not exclude the claim. That distinguishes it from social assistance and from citizen’s benefit.

The precondition is the qualifying period: under Section 142 SGB III you must have been in compulsory insurance for at least twelve months within the reference period. For people predominantly in short fixed-term employment, a shortened qualifying period of six months applies under narrow conditions.

Amount and duration of the benefit

Under Section 149 SGB III the benefit amounts to 60 per cent of the standardised net pay. It rises to 67 per cent where there is a child within the meaning of income tax law.

The duration follows Section 147 SGB III and depends on the insurance record and your age. It ranges from six months up to 24 months for insured persons aged 58 and over with 48 months of insurance.

The blocking period

A blocking period arises where the employee has behaved contrary to the insurance. For its duration the claim is suspended. The length depends on the breach alleged. Where you gave up the job it is regularly twelve weeks under Section 159(3) SGB III; it shortens to six or three weeks where the employment would have ended soon anyway or where twelve weeks would mean particular hardship.

There is frequently a dispute between the agency and the insured person as to whether there was any breach of duty at all. A blocking period is often imposed while proceedings on the lawfulness of the dismissal are still pending before the labour court.

Employment within the European Union

Working within the European Union must not lead to disadvantages. People who have worked in another EU Member State can therefore transfer their claim to Germany and draw it here. Equally, claims from Germany can be transferred to another EU country. The details are governed by European social security law.

Placement, support and the integration subsidy

The aim of the employment agency is to place the unemployed person back into work. It therefore funds further training and retraining. Promises are often made orally and later fail to materialise. It therefore makes sense to record any agreement in writing. Only then is there a real prospect of enforcing such promises in court. Support benefits are subject to the caseworker’s discretion; that discretion must be exercised free of legal error and is subject to judicial review.

Where placement into work is difficult, the Federal Employment Agency can grant an integration subsidy. Under Section 89 SGB III it can amount to up to 50 per cent of the relevant wage and be granted for up to twelve months.

That is a good option for both sides. The subsidy makes the employee attractive to the employer and improves the chances of being hired. The employer has considerably lower staff costs and can at the same time see the person’s qualifications at work in the business.

Frequently asked questions about unemployment benefit

Do I have to register before I become unemployed?

Yes. You must register as seeking work early, as soon as the end of the employment is known. Registering late can trigger a blocking period of its own.

Do I lose the claim through a termination agreement?

Not necessarily, but a termination agreement is the classic trigger for a blocking period for giving up the job. Whether there is good cause is the heart of the dispute.

What does drawing it mean for my residence title?

Unemployment benefit is an insurance benefit and is assessed differently under immigration law than tax-funded benefits. How drawing it affects your residence title depends on the title in question.