Persons entitled to benefits and able to work – Definition and legal significance
Definition and basic classification
The term Persons entitled to benefits and able to work (also: persons entitled to benefits and able to work, abbreviated: ELB) is a central legal term in German social law, especially in the context of the Second Book of the Social Code (SGB II) – Basic Security for Job Seekers. Persons entitled to benefits and able to work are those who are entitled to benefits to secure their livelihood under SGB II (commonly known as “Hartz IV”).
Legal basis
SGB II – § 7 Persons entitled to benefits and able to work
The relevant legal basis is § 7 SGB II, which defines in detail the requirements for benefit entitlement. According to this, a person is entitled to benefits and able to work if he or she
- has reached the age of 15 and has not yet reached the age relevant for the standard old-age pension,
- is able to work,
- is in need of assistance,
- has his or her habitual residence in the Federal Republic of Germany,
- and does not meet any exclusion criteria under § 7 subsection 1 SGB II.
Requirements for benefit entitlement
1. Completion of the 15th year of life and the standard retirement age
Benefits under SGB II are granted to persons from the completed 15th year of life up to the standard retirement age under SGB VI. Upon reaching the age limit, entitlement to benefits under SGB II ceases.
2. Ability to work
A person is considered able to work if he or she can work at least three hours a day under the normal conditions of the general labor market (§ 8 SGB II). It is essential that, from the perspective of the basic security agency, health or other limitations do not result in permanent full incapacity for work.
3. Need for assistance
Need for assistance as per § 9 SGB II exists when the person’s livelihood cannot be secured, or cannot be sufficiently secured, from their own income or assets or through primary benefits from third parties (e.g., unemployment benefit I, maintenance, housing benefit).
4. Habitual residence in Germany
Only persons with habitual residence in Germany are, according to § 7 subsection 1 sentence 1 SGB II, generally entitled to benefits. The habitual residence is the place where a person does not only stay temporarily and where their life is centered.
5. No grounds for exclusion
Certain groups of people are excluded from benefits under § 7 subsection 1 sentence 2 and further provisions, for example:
- Foreign nationals during the first three months of their stay in Germany
- Persons entitled to benefits under the Asylum Seekers Benefits Act
- Persons who claim residency-related benefits solely under EU law or on the grounds of seeking employment
Legal distinctions
Distinction from persons entitled to benefits and not able to work
An important distinction exists in relation to the so-called persons entitled to benefits and not able to work. These include, for example, children under 15 years of age and persons who, due to illness, disability, or other reasons, are not expected to be able to work at least three hours a day for a foreseeable period (longer than six months). Benefits for non-working dependents are also regulated within so-called needs-based communities (Bedarfsgemeinschaften) within the framework of SGB II, specifically under § 7 subsection 3 no. 4 and § 28 SGB II or as social assistance under SGB XII.
Needs-based community
Persons entitled to benefits and able to work are generally within the context of a Needs-based community (§ 7 subsection 3 SGB II), which can include, for example, partners, minor children, or housemates. The income and asset situation of the needs-based community members can affect entitlement to benefits.
Rights and obligations
Right to benefits
Persons entitled to benefits and able to work are entitled to:
- Benefits to secure livelihood (Unemployment Benefit II, Social Allowance)
- Costs for accommodation and heating (as far as reasonable)
- Benefits for integration into work (support measures, further training, etc.)
Obligations to cooperate
The receipt of benefits comes with extensive obligations to cooperate (§§ 60 ff. SGB I, §§ 31 ff. SGB II). These include, among others:
- Disclosure of income and assets
- Reporting changes in living circumstances
- Participation in support measures and application processes
- Acceptance or performance of reasonable work, work opportunities, or measures
Violations of these obligations may lead to sanctions, including benefit reductions.
Sanctions for breaches of obligations
If obligations are breached, the provisions of SGB II provide for benefit reductions, so-called sanctions (§ 31 SGB II). The amount and duration depend on the type and frequency of the breach; the case law of the Federal Constitutional Court (BVerfG, judgment of 5 November 2019, file no. 1 BvL 7/16) has clarified that reductions of more than 30% of the standard requirement are not permitted.
Special features regarding benefits
Supplementing earned income
Persons entitled to benefits and able to work, who pursue gainful employment but whose income is insufficient to cover their living expenses (known as “supplementers” or “Aufstocker”), are also entitled to supplementary benefits under SGB II (§ 11 SGB II).
Special cases: Training, studies, residence permits
Certain groups, such as trainees, students, and foreign nationals living in Germany, are subject to specific provisions and partial exclusions (§ 7 subsection 5 SGB II, § 7 subsection 1 sentence 2 SGB II).
Legal redress and responsibilities
For procedures and disputes concerning basic security for job seekers, the route to the social courts is open. The responsible authorities are usually the Jobcenters, which operate as joint institutions of the Federal Employment Agency and municipalities or as municipal bodies.
Literature and further resources
- Social Code Book II (SGB II) – https://www.gesetze-im-internet.de/sgb_2/
- Federal Ministry of Labour and Social Affairs (BMAS): Information on basic security for job seekers
- Federal Social Court: Case law on basic security
This article provides a detailed, comprehensive, and up-to-date overview of the term “persons entitled to benefits and able to work” in German social law, explains the statutory requirements, distinctions, rights and obligations associated with the status, as well as special features, and illustrates the most important aspects for understanding the social law context.
Frequently asked questions
How is ability to work determined in the legal sense?
The assessment of ability to work is carried out according to § 8 SGB II and is a central condition for claiming benefits under the Second Book of the Social Code (SGB II). The key issue is whether a person is able to work at least three hours a day under the normal conditions of the general labor market. The assessment is regularly conducted by the Jobcenter based on medical opinions or reports from the Medical Service. If there are doubts about the ability to work, the Jobcenter may arrange for a medical examination. Not only physical but also psychological abilities, as well as special burdens and limitations, are taken into account. The decision on ability to work may be made for a limited period if an improvement or deterioration in health is expected. Should the person not be able to work, he or she may be entitled to benefits under SGB XII (social assistance).
What obligations to cooperate apply to persons entitled to benefits and able to work?
Persons entitled to benefits and able to work are subject to extensive obligations to cooperate, regulated particularly in § 60 to § 66 SGB I and § 31 SGB II. These include the obligation to promptly notify the Jobcenter of any changes in personal and financial circumstances, provide documents upon request, and participate in medical examinations necessary to determine ability to work. They must also actively participate in measures for occupational integration, comply with job placement proposals, and demonstrate their own efforts to take up employment. Breaches of obligations to cooperate may lead to benefit reductions (sanctions) and, in serious cases, to a complete loss of entitlement to benefits.
What benefits are persons entitled to benefits and able to work legally entitled to?
Persons entitled to benefits and able to work are entitled under SGB II to various benefits to secure their livelihood. These include, in particular, the standard requirement, additional needs, needs for accommodation and heating, as well as integration benefits into work, such as placement and advisory services or measures for activation and qualification. Benefits are granted according to the principle of subsidiarity, that is, only to those who cannot secure their livelihood and that of their needs-based community from their own income or assets and do not have a primary entitlement to other social benefits (such as unemployment benefit I, pensions or social assistance). Benefits are usually paid as cash, and in specific cases – e.g., with necessary benefits in kind – also as services or goods.
Can sanctions be imposed on persons entitled to benefits and able to work?
Under § 31 ff. SGB II, sanctions (benefit reductions) may be imposed for breaches of obligations. This includes, for example, refusal to take up reasonable work or integration measures, failure to prove mandatory job-seeking efforts, or breaching reporting obligations to the Jobcenter. The extent of sanctions depends on the nature and frequency of the breaches and is usually 10% of the relevant standard requirement for a period of one month. Repeated breaches may result in further reductions. For young people under 25, repeated breaches can also result in full withdrawal of costs for accommodation and heating. Note that sanctions are only permissible if the Jobcenter has previously informed the recipient in writing about the legal consequences.
Under what circumstances can entitlement to benefits be lost?
Entitlement to benefits under SGB II may lapse under several legal conditions. Main reasons include, among others, the loss of ability to work (for example, due to permanent health impairment), exceeding certain income and asset thresholds, staying outside Germany for more than four weeks, the existence of primary entitlements (such as entitlement to unemployment benefit I or a reduced earning capacity pension), or persistently refusing to comply with obligations to cooperate. If any of the eligibility requirements cease to exist, the entitlement to benefits expires, and benefits already paid may be reclaimed.
What role does the needs-based community play in assessing persons entitled to benefits and able to work?
The needs-based community is a central concept in SGB II and defines the group of persons whose income and assets are jointly taken into account to meet needs. Besides the person entitled to benefits and able to work, it includes, among others, the partner or spouse and children under 25 years living in the household who do not have sufficient own income or assets to cover their needs. Income and assets of all members are considered when calculating the entitlement to benefits. Certain groups of people, such as adult children with their own household or permanently separated (married) partners, no longer belong to the needs-based community. Proper classification is legally decisive as it affects the amount of benefits and the obligations to cooperate.
How is the legal review and objection process carried out for decisions of the Jobcenter?
Persons entitled to benefits and able to work may submit an objection in writing against notices from the Jobcenter, especially those concerning the denial or reduction of benefits. The period for this is generally one month from receipt of the notice. The Jobcenter reviews the objection in the so-called objection procedure and makes a new decision (objection decision). If the objection is rejected, there is the possibility to file a lawsuit before the competent social court. In the course of the court proceedings, the case is comprehensively reviewed, and applicants may also apply for legal aid if necessary. Timely appeal against notices is essential, as legal effect becomes binding after deadlines expire, making later review more difficult or impossible.
