Participation in the labor market; applying for funding when hiring people who have been long-term unemployed for many years

As an employer, you can give long-term unemployed people the chance of a new start in working life through employment subject to social insurance contributions by creating suitable jobs in your company and actively supporting your new employees during their induction.

The aim is to enable your new employee to participate in working life and to keep them in your company as long as possible after the end of the support.

The job center can reimburse a large part of your wage costs in the first 5 years, also finances coaching and you receive a budget for necessary further training.

Wage cost subsidy for up to 5 years

The job center can grant you wage cost subsidies for a maximum of 5 years. The wage cost subsidy is paid monthly and amounts to

• 100 percent in the 1st and 2nd year of support,
• 90 percent in the 3rd funding year,
• 80 percent in the 4th funding year and
• 70 percent in the 5th funding year

of the minimum wage in accordance with the Minimum Wage Act. If you as an employer are bound by a collective agreement or church labor law regulations or refer to a relevant collective agreement, your subsidy will be calculated according to the actual wages paid.

The subsidy also covers your employee's insurance with a flat-rate social security contribution. The contribution to unemployment insurance is excluded.

You will not receive a subsidy for one-off payments such as Christmas bonuses or vacation pay.

Support during employment (coaching)

In addition, the Jobcenter will cover the costs of coaching for a maximum of 5 years to support your previously long-term unemployed employees, for example with problems at their new workplace, with their family or with difficulties in organizing their everyday life. This makes it easier for your new employees to get used to everyday working life after a long period of unemployment.

The supported employees should take part in this coaching. In principle, the coaching can take place during or outside working hours, at the workplace or at another location. However, you must release your sponsored employee from work for the coaching in the first year of the sponsorship; in the case of coaching during working hours, you must continue to pay the employee's salary. The need for coaching is determined on an individual basis. Your business needs will be taken into account when scheduling the coaching.

The coaching is designed in such a way that it also takes into account the special requirements that you or your company place on your staff. However, the coaching does not include technical training.

The coach will involve you as required and will be available to answer any questions relating to the employee receiving support.

Further training costs

On application, the Jobcenter will also reimburse you up to EUR 3,000 for any further training required during the employment, so-called course costs, as well as for in-house training. Your employees can also be reimbursed for additional travel costs and additional childcare costs incurred during further training.

The decision on the funding of further training costs is at the discretion of the Jobcenter. You do not have a legal entitlement to funding.

Internship

The funding also allows you to complete internships outside your company with another employer within the funded employment relationship.

• The person for whom you wish to receive the grant must
  • be over 25 years old,
  • have received citizen's allowance for at least 6 years within the last 7 years
    and
  • not have been employed at all or only briefly during this time.
  • If at least one minor child lives in the household or if the person is severely disabled, the person must have received citizen's allowance in the last 5 years.
• The employment must be subject to social security contributions.
• Support is excluded if
  • you terminate an existing employment relationship in order to receive a wage subsidy or
  • you no longer make use of a subsidy previously provided for the employment relationship without a special reason.

In order to receive the wage subsidy, you must submit an application before you hire someone and the employment contract is concluded.

• Get in touch with your contact person at the Jobcenter. They will advise you on the subsidy and provide you with the application form or you can submit the application online.
• Complete the funding application and submit it to the Jobcenter or submit the application online.
• Your job center will check your application and inform you whether the employment relationship is eligible for funding and whether the person you wish to employ is eligible for this funding.
• If the response is positive, you can conclude the employment contract and send it to the Jobcenter immediately.
• If all requirements are met, your employee will be assigned to you and you will receive a notice of approval.

The Jobcenter will take care of coaching your employee during the employment process.

You must also first submit an application so that the Jobcenter can cover the costs of further training.

• Get in touch with your contact person at the Jobcenter. They will give you the application form.
• Complete the funding application and submit it to the Jobcenter with all the necessary documents.
• Your Jobcenter will check your application. If all requirements are met, you will receive a notification of approval.

As an employer, you must notify the Jobcenter of the internship before it begins.

Apply for the wage subsidy before you conclude the employment contract with your new employee.

Objection period: 1 month

None

• Required document/s
  
  • Fully completed application
  • employment contract

Fee: none