Promotion of vocational training through replacement
The promotion of vocational training through replacement refers to a specific measure in German labor and social law that enables employees to participate in vocational training by being temporarily replaced by a substitute within their company for the duration of the training. This regulation is closely linked to the objective of maintaining employability amidst the changing world of work, to further train skilled workers, and to counteract the shortage of skilled labor.
Legal foundations
Statutory anchoring
The promotion of vocational training through replacement is specifically anchored in the German Social Code Book Three (SGB III) “Employment Promotion.” The relevant regulations are derived from Section 82 SGB III (“Training of Employees”) as well as from the context of other provisions that allow subsidies for employee training, provided certain requirements are met. Special attention should be given to the regulations on covering training costs and promoting the temporary employment of a replacement during the training period.
Purpose of the regulation
With the promotion, the legislator aims to remove obstacles to vocational training. In particular, small and medium-sized enterprises (SMEs), which often face difficulties releasing staff for training periods, are to be encouraged to engage their employees in retraining programs. The option of employing a subsidized replacement provides crucial relief.
Requirements for promotion
Eligibility requirements
Promotion of vocational training through replacement generally requires that
- the training measure serves to maintain and expand professional knowledge, skills, and competencies,
- the employer hires a replacement for the duration of the employee’s participation in training,
- the measure to be supported is carried out by a recognized provider in accordance with state or nationally recognized standards,
- the training provides a professional benefit to the employed person (e.g., improved career prospects or job security).
Application procedure
As a rule, the promotion must be applied for at the competent Employment Agency before the start of the training course. The application is submitted by the employer, who must prove that all requirements (personnel details, qualification of the replacement, eligibility of the measure) are met.
Scope of funding
The funding covers, according to Section 82 SGB III, depending on the company and individual case, the following benefits:
- Subsidies for the course costs of the training measure,
- Subsidies for wages during the training period,
- Reimbursement of costs for a necessary replacement during the employee’s absence.
The amount of subsidies depends on the company’s size, the age and qualifications of the participating employee, as well as the relevance of the measure for the labor market.
Legal consequences and employment law implications
Employment relationship of the employee undergoing training
During participation in the funded training, the employment relationship continues to exist. The basic principle of the duty to continue employment applies, meaning the employee remains employed with the original employer, generally continues to receive their salary, and remains continuously covered by social insurance.
Fixed-term employment relationship of the replacement
With the replacement hired for the training period, a fixed-term employment contract is regularly concluded in accordance with Section 14 (1) of the Part-Time and Fixed-Term Employment Act (TzBfG), since the objective reason for the fixed term—the replacement—arises from the employee’s temporary absence due to training.
Right of return
After completion of the training, the employee is entitled to return to their workplace. Any skills acquired during training may even lead to a better position or a change in job classification, provided this is agreed upon between employer and employee or justified by operational needs.
Consequences for employers
Obligations during the funding period
Employers are required to continue to fulfill their employment law obligations during the funding period. This includes continued pay (as agreed or required by law) and proper payment of social security contributions.
Use of funding
The funding received must be used for its intended purposes only. Misuse can result in claims for repayment from the funding institution.
Documentation requirements
There are extensive documentation requirements concerning the training measure carried out, the employment relationship of the replacement, and the use of funds within the scope of the promotion. These documents must be presented to the Employment Agency upon request.
Relationship to other labor market policy instruments
Distinction from short-time allowance and transfer companies
Promotion by means of replacement is to be distinguished from, for example, short-time allowance (Kurzarbeitergeld) under Section 95 SGB III or transfer benefits provided by transfer companies. While short-time work means a temporary reduction in working hours without explicit training and replacement, promotion through replacement is clearly tailored to qualification and temporary staff replacement arrangements.
Combination with additional support measures
Under certain circumstances, the promotion of vocational training through replacement can be combined with additional labor market policy instruments, such as coverage of examination fees or travel allowances. However, the permissibility of combining with other types of funding must be reviewed on a case-by-case basis.
Legal protection and control mechanisms
Legal recourse
If funding notices are denied, recourse is available through the administrative court system, beginning with an objection procedure against the decision of the Employment Agency, followed by legal action.
Supervision and sanctions
The responsible authorities monitor the proper implementation and compliance with the requirements. In case of breaches of funding conditions, demands for repayment and possible fines may be imposed.
Significance in business practice
This measure is of significant practical importance, particularly for SMEs, as the absence of an employee due to training can have a considerable impact on a small workforce’s operations. By employing a replacement and having the costs reimbursed, the incentive for companies to promote further training is considerably increased.
Summary:
The promotion of vocational training through replacement is a labor and social law instrument of importance for increasing workplace qualification, which enables further training in particular in small companies by temporarily employing a substitute. Detailed regulations can be found in SGB III; affected companies and employees benefit from subsidies covering costs and salaries as well as from employment law protection during the measure. Strict compliance with statutory requirements and documentation obligations is essential for lawful funding.
Frequently Asked Questions
Who is entitled under German law to promotion of vocational training through replacement?
Employees are entitled to funding of vocational training through replacement under certain conditions in accordance with Book Three of the Social Code (SGB III), especially as specified in Sections 81 et seq. SGB III. The entitlement applies to measures where the employee is partially or fully replaced by a substitute during the training period. The purpose is to ensure business operations and to avoid disadvantages resulting from the temporary absence of the person undergoing training. Typically, a prerequisite is an existing employment relationship and the employer’s consent to the training and employment of a replacement. In addition, the contents of the training and evidence of qualification needs must meet the requirements of the competent Employment Agency. There is not always a legal entitlement to support; rather, the Employment Agency must assess eligibility on a case-by-case basis.
What statutory provisions regulate the promotion of vocational training through replacement?
The statutory framework for the promotion of vocational training through replacement is set out primarily in SGB III, especially Sections 81 to 82a. This is supplemented by various federal and state funding programs, such as the Qualification Opportunities Act (Section 82 SGB III). Section 82(4) SGB III provides that, in addition to course and social security costs, the costs for a replacement during release may also be funded under certain circumstances by the Employment Agency. Promotion is always granted subject to a review of the individual, business, and labor market circumstances, in compliance with current funding guidelines and possible co-financing requirements.
Which groups of people can apply for funding through replacement?
Those eligible include mainly employees subject to social insurance contributions, including those with special qualification needs such as low-skilled workers, older employees, or workers in small and medium-sized companies. Employers themselves can also apply if they are willing to enable their employees to undergo further training and can provide evidence of a suitable replacement. Funding is relevant particularly when the employee’s absence cannot easily be covered by existing personnel resources and a replacement is necessary to maintain operations. However, the legal framework generally excludes the self-employed, marginal part-time workers, and, for the most part, public sector employees.
What requirements must be met for funding of a replacement?
The following legal requirements must be met to qualify for promotion of vocational training through replacement: First, the training must be recognized as labor market relevant; second, it must take place outside of routine company operations, making the employee’s release indispensable. Third, the company must demonstrate that employing a replacement is genuinely necessary to maintain operations and that tasks cannot simply be redistributed. Furthermore, the specific training program must not be aimed at immediate job retention nor be of short duration; rather, there must be sustainable qualification prospects. The replacement must be engaged under a fixed-term, socially insured employment contract that complies with employment law requirements. This procedure must be fully documented to the Employment Agency.
To what extent and at what levels is funding provided?
Funding generally includes coverage of part of the wage costs for the replacement during the original employee’s training. The amount varies depending on the funding scheme and company-specific factors. According to SGB III (Section 82(4)), up to 100 percent of eligible costs can be covered, particularly for small companies or for the training of especially disadvantaged employee groups. Typically, however, between 50 and 75 percent of the actual replacement costs are reimbursed based on needs. Maximum funding amounts are regulated in the implementation guidelines and relevant administrative provisions. Additional costs for the training itself, such as examination fees or the travel expenses of the replacement, are not covered.
What rights and obligations exist following approval of funding in relation to the replacement?
Once funding has been approved, employers are required to provide full evidence that the replacement is used solely to compensate for the defined period of the employee’s absence. The documentation obligation covers start, end, and scope of the replacement’s activity as well as compliance with social security provisions. Additionally, the replacement’s employment terms must not fall below contractually or collectively agreed standards. The employer is obliged to immediately notify the funding body of any change in circumstances—such as early return of the employee or termination of the training. In the event of non-compliance, the support may be partially or wholly reclaimed. After the training, employees have a right to return to their previous job on unchanged terms.
How does such funding affect other employment law aspects?
Funding via replacement does not affect the individual employment relationship of the person undergoing training. There is a legal right to return to the workplace, and the period of leave for training must not be counted as vacation or other absences. Social insurance continues without disadvantage during the absence. With respect to the replacement, a separate employment relationship exists, usually fixed-term and limited to the duration of the measure. The works council and staff representatives must be involved in accordance with the Works Constitution Act (BetrVG) when hiring and employing replacement staff (Section 99 BetrVG).
What legal consequences result from erroneous application or processing?
If incorrect information is provided in the application process, required proof is not supplied, or funds are misused, SGB III provides for comprehensive repayment and, if necessary, criminal provisions (Sections 330 et seq. SGB III). Unjustifiably granted funds must be repaid, and interest may also be charged. An erroneous application may also affect future applications, e.g., by causing exclusions or refusals. Employers and employees alike are required to provide complete and truthful information and to comply with all documentation and notification duties.
