Definition and Legal Foundations of Relocation Expense Allowance
Die Relocation Expense Allowance is a financial support granted to certain groups of people to cover the costs incurred by a move. It is considered a social benefit but can also be relevant in public service or in employment relationships. The legal regulations governing relocation expense allowance are set out in various laws and ordinances, in particular in the Federal Relocation Expense Act (BUKG), in the Social Code Books (SGB), as well as in special statutory regulations of the public service.
Relocation Expense Allowance in the Public Service
Relocation Expense Law under the BUKG
The Federal Relocation Expense Act (BUKG) forms the basis for granting a relocation expense allowance in public law employment relationships. Those eligible for support are primarily civil servants and equivalent employees whose relocation is required due to official demands.
Key regulatory contents:
- Eligibility Requirements: A claim for relocation usually exists in the case of an official transfer, secondment, reassignment, or appointment, provided the new place of work is outside a reasonable commuting distance.
- Scope of Covered Costs: The BUKG defines in detail which moving expenses (e.g., transport costs, travel costs, rent compensation, broker fees, ancillary costs) are covered.
- Form and Procedure of Application: An application for reimbursement of relocation expenses must generally be submitted before or immediately after the move and be supported by appropriate evidence.
State-Specific Regulations
In addition to the BUKG, there are separate relocation expense rules for the federal states and municipalities, which in part refer to federal law but may contain their own requirements and procedural rules. These are found in the respective state relocation expense laws or administrative provisions.
Relocation Expense Allowance in Social Law
Relocation Expense Allowance under SGB II (Basic Security for Job Seekers)
According to § 22 SGB II, eligible persons (“Hartz IV” recipients) can receive a relocation expense allowance if the move is necessary and initiated by the responsible job center.Relevant Aspects:
- Necessity of the Move: A move is considered necessary, for example, when starting a job, separating from a spouse, facing intolerable living conditions, or upon official request.
- Eligible Costs for Reimbursement: In particular, transport costs, costs for a moving van, rental deposit (as a loan), renovation expenses, as well as expenses for packing and unpacking are reimbursed.
- Application and Approval: The assumption of costs must be applied for in advance at the job center. Prior approval is a mandatory requirement for reimbursement.
Relocation Expense Allowance under SGB III (Employment Promotion)
Within the context of professional advancement under SGB III, the Federal Employment Agency can approve relocation expense allowances, for instance when starting a job at a remote location (§ 53 SGB III).Criteria:
- Relation to Professional Integration: The prerequisite is generally the commencement of an employment relationship or company training that necessitates a move.
- Type of Costs: Reasonable and proven costs of the moving process are covered.
- Procedure: The application should be submitted early and informally, ideally before the move, to the responsible employment agency.
Relocation Expense Allowance in Tenancy Law
There is generally no legal obligation for the landlord to pay a relocation expense allowance. However, in connection with tenancy cancellation agreements or modernization measures, such an allowance can be individually agreed upon. In cases of terminations due to own use, relocation expense allowances are sometimes paid as part of the eviction process, but there is no general legal basis for this.
Tax Aspects of Relocation Expense Allowance
The relocation expense allowance is tax-free under certain conditions, provided it is paid from public funds and the expenses do not exceed the rates recognized by the Relocation Expense Ordinance (§ 3 No. 13 or 16 EStG).
Self-paid moving expenses can also be taken into account for tax purposes as income-related expenses if they are work-related.
Relocation Expense Allowance for Trainees and Students
For trainees, a relocation expense allowance is especially possible through support via vocational training allowance (BAB) pursuant to SGB III. Students generally do not receive a specific relocation expense allowance, but social funds and state programs sometimes provide special funding, for example, for moves to begin studies or participate in semesters abroad.
Procedure, Evidence, and Deadlines
The following general steps must be observed when claiming a relocation expense allowance:
- Application: The application should preferably be submitted before the move begins; in exceptional cases, immediately afterwards, taking into account any relevant deadlines.
- Evidence of Expenditure: Reimbursement eligibility regularly requires the submission of verifiable receipts (receipts, contracts, invoices).
- Approval and Disbursement: After examining the application, a decision on approval is issued, followed by the payment of the recognized costs.
Legal Remedies and Appeal
If an application for relocation expense allowance is rejected or not approved in the requested amount, depending on the area of law, there is a right of appeal or to file a lawsuit before the administrative or social courts. The respective deadlines for lodging an appeal are regulated by the procedural rules of the relevant legal areas (e.g., § 84 Social Court Act or § 70 Administrative Court Code).
Literature and Further Regulations
- Federal Relocation Expense Act (BUKG)
- Federal Relocation Expense Ordinance (BUKV)
- Social Code Books (especially SGB II, SGB III)
- State Laws on Relocation Expenses
- Income Tax Act (EStG)
- Administrative regulations of the federal states and municipalities
Summary
The relocation expense allowance represents an established system in Germany for providing financial relief for moves due to work or social reasons. The legal foundations differ depending on eligibility and mainly cover public service law, social law, parts of tax law, and special provisions for trainees. Entitlement to relocation expense allowance generally requires prior application, verification, and, if applicable, prior approval.
Note: Always the current version of the relevant laws and administrative regulations is decisive for the current and individual legal situation.
Frequently Asked Questions
Who is legally entitled to a relocation expense allowance?
The entitlement to a relocation expense allowance is legally regulated and may arise either under social law, employment law, or in the context of public service from the Federal Relocation Expense Act (BUKG). Under social law, there is an entitlement according to § 22 para. 6 SGB II (“job center”) for recipientsof unemployment benefit II if a move is required for compelling reasons and the assumption of costs is applied for before approval. In the public service, the BUKG regulates entitlement for civilservants, judgesand career soldiersin cases of official transfers. Under employment law, collective bargaining agreements or individual employment contracts (particularly for company-initiated moves) may serve as a basis for entitlement; however, there is no general statutory entitlement outside the scope of social benefits. Private individuals without benefit entitlement generally have no statutory claim but may apply for individual case decisions in cases of particular hardship through social authorities.
What requirements must be met for approval?
The requirements for approval depend on the respective area of law. In the SGB II/job center context, ‘compelling reasons’ such as imminent homelessness, starting a job in another city, or intolerable living conditions are decisive. Under the BUKG, the prerequisite is that the move is caused by an official measure—e.g., transfer, secondment, or appointment—and is applied for in a timely manner. In all cases, as a rule, the application for cost coverage must be submitted before the move. For social benefit recipients, the move must not ‘be self-initiated’ but must be necessary, reasonable, and pre-approved. The reasonableness of costs (e.g., no luxury services) and verifiability by appropriate receipts are also essential prerequisites.
What costs are covered by the relocation expense allowance?
The costs covered are detailed in the respective legal framework. According to § 6 BUKG, these include, among others, transport costs for moving goods, travel costs for movers and family members, rental or moving company costs, ancillary charges such as packaging material, and, if necessary, costs for double rent payments or renovation work (insofar as these are necessary). Under SGB II, moving costs, rental deposits, installment payments for electricity/gas, and necessary furnishings (if not available in the old accommodation) can be covered, with the principle of ‘economic efficiency’ to be observed (cheapest options must be chosen). Personal contributions or voluntary additional services are excluded.
How is the application made and what evidence is required?
The application must generally be made in writing and before the move to the responsible authority (job center, department, employer). The following may be required: a detailed justification for the move (e.g., official order, employment contract, medical certificate), cost estimates from moving companies, proof of the new and old residence (e.g., tenancy agreement or notice of termination), as well as evidence of incurred costs (such as receipts or invoices after the move). In the BUKG process, applicants fill in specific forms, which may also be submitted digitally. In the SGB II context, self-performed work must be precisely documented and delineated.
Can the relocation expense allowance be reclaimed?
Yes, reclaiming is possible, among other things, if the move was not carried out, was only partially carried out, was done solely for economic reasons, or without real necessity, if false information was provided, or if costs were claimed that are not eligible for reimbursement. According to the rules for repayment in the BUKG or in SGB X (administrative law), the authority can order repayment, setting a deadline and giving a hearing, if the grounds for entitlement lapse or if benefits were unlawfully granted (e.g., fraud).
Are there legally binding deadlines for the application for a relocation expense allowance?
Yes, there are legally established deadlines for the application. Under the BUKG, the application must be submitted before the move; subsequent approval is generally excluded. Also under SGB II, assurance for the assumption of moving costs must always be obtained before signing the new tenancy agreement and before the move. Late applications are often rejected unless there is an unavoidable emergency that can be proven to be outside the applicant’s control.
Can legal remedies be filed if the relocation expense allowance is denied?
Yes, in the event of a denial, there are legal options to challenge the decision. Under social law (SGB II), an objection can be filed against a negative decision; if this is unsuccessful, a lawsuit can be brought before the social court. In public service, this proceeds via the regular administrative procedure. The deadlines for filing an objection or claim vary according to legal domain (usually 1 month). It is advisable to have the reasons for the denial carefully reviewed and, if necessary, to submit additional documents or seek legal advice.
