Definition and Legal Classification of Services for Integration into Employment
Services for integration into employment are central instruments of German labor promotion. They aim to support employable beneficiaries in taking up employment in the regular labor market or in improving their employability. The legal basis for services for integration into employment is primarily found in the Second Book of the Social Code (SGB II), but also in the Third Book of the Social Code (SGB III), with the provisions in SGB II mainly applying to persons entitled to basic security (citizen’s income).
Legal Basis
SGB II – Services for Integration in the Context of Basic Security
In SGB II, services for integration into employment are regulated in Sections 14 et seq. According to Section 14 SGB II, in fulfillment of the obligation to integrate employable beneficiaries into employment, job centers have a comprehensive mandate to provide appropriate measures and funding opportunities. The services include both financial support and services.
SGB III – Labor Promotion Law and Interfaces
In SGB III, services for integration into employment are anchored in the context of labor promotion for unemployed persons and those at risk of unemployment. This includes, among other things, the promotion of vocational training, placement services, and advisory services provided by employment agencies.
Types of Services for Integration into Employment
Activation and Placement Services
Core benefits include various activation and vocational integration measures in accordance with Section 16 (1) SGB II:
- Vocational Counseling and Job Placement: Individual counseling and support in searching for appropriate employment.
- Integration Measures such as application training, career orientation, or counseling within case management.
Promotion of Vocational Training
Training measures under Section 81 SGB III or Section 16 (1) SGB II in conjunction with the provisions of SGB III enable the acquisition of new professional qualifications or the retention of existing knowledge. The costs of the training measure as well as necessary travel and accommodation expenses can be covered.
Promotion of Employment Relationships
Special benefits for the promotion of employment relationships are regulated in Section 16e SGB II. This includes, among other things, wage subsidies to employers when hiring employable beneficiaries with placement barriers. The goal is the stabilization and securing of long-term employment relationships.
Workplace-based Measures (MAG)
Measures at an employer under Section 16 (1) SGB II in conjunction with Section 45 SGB III serve to integrate participants into company workflows and establish proximity to the labor market. Employers do not receive direct financial support for this, but have the opportunity to get to know potential employees.
Start-up Grant and Additional Support Services
The start-up grant according to Section 16b SGB II supports individuals who take up dependent or self-employed work. The start-up grant is temporary financial support to overcome entry barriers.
Eligibility Requirements and Application Procedure
Entitlement to services for integration into employment generally exists for employable beneficiaries who are available to the labor market. The application must be submitted at the locally responsible job center. The decision on funding is at the discretion of the job center and depends, among other things, on the individual integration prognosis and any existing placement obstacles.
Goals and Target Groups
Objectives
The primary aims of services for integration into employment are sustainable reintegration into the primary labor market and the reduction of unemployment. In addition, the improvement of employability, individual support for qualifications, and the prevention of long-term unemployment are also pursued.
Target Groups
Benefits are primarily aimed at employable beneficiaries as defined in Section 7 (1) SGB II, in particular at
- the long-term unemployed,
- persons with limited employability,
- single parents,
- people with disabilities or health restrictions,
- younger and older job seekers.
Legal Protection and Legal Consequences
Objection and Legal Proceedings
Decisions regarding the granting, rejection, or scope of services for integration into employment can be challenged by means of objection (Section 83 SGG). In the event of rejection, it is possible to file a lawsuit before the Social Court.
Sanctions and Duty to Cooperate
The use of services is regularly tied to obligations to cooperate and integration agreements pursuant to Section 15 SGB II. Violation of these obligations can lead to sanctions, particularly reductions in benefits if beneficiaries reject reasonable measures or integration offers.
Financing
Services for integration into employment are financed from federal funds. Funding is provided via the Federal Ministry of Labor and Social Affairs, while implementation and approval are organized by the respective job centers and employment agencies.
Data Protection and Data Use
The processing of personal data when granting services for integration into employment is subject to the requirements of data protection law, in particular the GDPR, SGB X, and the respective area-specific provisions of SGB II and SGB III.
Significance and Evaluation
Services for integration into employment significantly shape the German system of active labor market policy. Their effectiveness is subject to continuous evaluation through academic accompanying research and monitoring by the Federal Employment Agency and the Federal Ministry of Labor and Social Affairs.
Source reference: For the legal basis and further information, relevant literature and authorities refer to the current versions of SGB II and SGB III as well as to the publications of the Federal Employment Agency and the Federal Ministry for Labor and Social Affairs.
Frequently Asked Questions
Who is legally entitled to services for integration into employment?
In principle, services for integration into employment are available to employable beneficiaries under the Social Code Book II (SGB II), i.e., persons who have reached the age of 15, have not yet reached the age limit under Section 7a SGB II, are employable and in need of assistance, and have their habitual residence in Germany. It is irrelevant whether these persons are currently employed or unemployed; what matters is their current need of help and support with regard to sustainable integration into the labor market. A decisive legal criterion is that beneficiaries must exhaust all possibilities to end or reduce their need for assistance, which is regulated in Section 2 SGB II as the principle of demanding. The eligibility requirements also include that the person is willing to participate in the measures provided for in the integration process and to show initiative.
What types of services for integration into employment are provided for in SGB II?
SGB II distinguishes between a variety of instruments for promoting and integrating into employment. These include, in particular, services for counseling and placement, support for participation in the labor market such as activation measures, vocational training, taking up employment subject to social security contributions, as well as start-up grant, placement vouchers, and measures to promote employment. Services for promoting self-employment, promotion of training and further education, or support for mobility and relocation, for example, can also be granted. The legal framework always depends on the individual requirements of each case and the discretionary decision of the respective authority.
How is the legal review and selection of appropriate integration measures carried out?
The selection and approval of suitable integration services is carried out through individual, legally prescribed counseling and so-called profiling, during which the abilities, knowledge, and obstacles of the eligible person are comprehensively assessed. In this individual case review, the authority’s discretionary decision is binding, and both the suitability, necessity, and proportionality of the measure are decisive (Section 14 SGB II). The authority administering SGB II must, together with the beneficiary, develop an integration strategy (‘integration agreement’) that bindingly regulates the concrete measures and reciprocal obligations.
Under what conditions can integration services be legally denied or withdrawn?
Services for integration into employment are not unconditional, but are subject to the cooperation and personal initiative duties of the beneficiary. If these obligations are violated – for example, by a lack of initiative, rejection of reasonable work, or failure to participate in prescribed measures – the benefit can be sanctioned, restricted, or entirely withdrawn in accordance with Section 31 SGB II. However, sanctions may not apply if there is an important reason for rejecting a reasonable measure. Entitlement also lapses if the basic requirements such as need for assistance or employability are no longer present.
Is there a legal entitlement to specific measures or services for integration into employment?
A direct legal entitlement to a specific integration measure does not generally exist under SGB II, as these are discretionary benefits. The selection and design of suitable measures are based on the individual’s needs and are determined by the relevant authority within the scope of its discretion. However, there is an entitlement to a decision free from discretionary errors, meaning that the authority must adequately balance the interests of the beneficiary while observing legal requirements. Only in atypical case constellations or in the case of entrenched integration needs may a claim to certain benefits be enforceable, provided there is no unlawful reduction of discretion to zero.
How is the special protection against dismissal regulated for participation in integration measures?
During participation in certain publicly funded integration measures, there is special statutory protection against dismissal according to Section 2 (2) SGB III in conjunction with Section 2 (2) SGB II. This is to ensure that beneficiaries are not disadvantaged under labor law due to their participation in integration measures. This special protection against dismissal applies especially during and, if applicable, after the measure, provided further employment takes place after the measure has ended.
What options are there if an integration service is unjustifiably refused by the authority?
If an application for a benefit for integration into employment is refused or a measure is not approved, the person concerned has the general legal remedies available under administrative law. After receiving the rejection notice, an objection can be lodged within one month in accordance with Section 84 SGG. If this is rejected, there is the possibility of filing a claim before the Social Court under Section 87 SGG. In the appeal proceedings, it will be reviewed whether the authority exercised its discretion properly and complied with all legal requirements. If significant discretionary errors exist, an obligation to grant the requested benefit may be imposed.
