Definition and Legal Classification of Sheltered Workshops
A sheltered workshop (abbreviated WfbM, workshop for people with disabilities) is a facility recognized under German social law for the participation of people with disabilities in working life. Its aim is to provide appropriate vocational training and employment to people with disabilities who, due to the nature or severity of their disability, are currently unable, not yet able, or not yet again able to work on the general labor market. The legal foundations that determine the structure and operation of sheltered workshops are set out in particular in Book Nine of the Social Code (SGB IX).
Legal Foundations of Sheltered Workshops
Statutory Foundations in SGB IX
The main statutory basis for sheltered workshops is SGB IX (§§ 219 et seq. SGB IX). This law regulates the tasks, target groups, admission requirements, funding, and operation of workshops for people with disabilities.
Purpose and Tasks According to § 219 SGB IX
Workshops for people with disabilities are tasked with providing offerings for participation in working life to people with disabilities and to support their transition to the general labor market. They foster personal development, independence, and the development of employability skills.
Target Group and Admission
According to § 219 para. 1 SGB IX, sheltered workshops are intended for persons who, due to disability, cannot, not yet, or not yet again be employed on the general labor market. Admission requires integration assistance or an equivalent assessment procedure. In many cases, a medical, psychological, or socio-educational evaluation is necessary.
Structure and Organizational Design
Areas and Phases in a Sheltered Workshop
According to § 219 SGB IX, sheltered workshops are divided into various areas:
Entry Process
Das Entry Process (lasts a maximum of three months) serves to determine whether the work in the workshop meets individual needs and to develop an integration plan.
Vocational Training Area
Im Vocational Training Area (usually 24 months) provides the foundations of vocational training and skills. The aim is to develop abilities that enable either a transfer to the working area of the workshop or, ideally, a transition to the general labor market. The main legal basis is the Workshop Regulation (WVO).
Working Area
Der Working Area is intended for people who, initially, cannot (yet) be integrated into the general labor market. Here, appropriate work opportunities are offered within the framework of individual capacity. Remuneration is paid based on the remuneration system regulated in SGB IX.
Legal Status of Employees in Sheltered Workshops
No Employment Relationship within the Meaning of Employment Law
Employees in sheltered workshops do not have an employment relationship under the general employment law (BGB, labor law, collective bargaining law), but a quasi-employee legal relationship with the operator of the workshop (§ 221 SGB IX). This does not create a claim to an employment contract under general employment law, but there are rights and obligations similar to those of employment with respect to work, remuneration, and social security.
Remuneration and Social Security
Employees in a workshop for people with disabilities receive a work remuneration, which consists of a basic amount (§ 221 para. 2 SGB IX), set annually by the federal government, and a performance-related incremental amount. Financial benefits are provided, among others, by rehabilitation providers, integration assistance, and workshop income.
In terms of social security law, employees are entitled to statutory pension, health, nursing care, and accident insurance (§ 221 SGB IX). The contributions are paid by the respective rehabilitation providers and through personal contributions.
Recognition and Sponsorship of Sheltered Workshops
Requirements and Recognition of the Workshop
To be recognized as a workshop for people with disabilities, facilities must, according to § 225 SGB IX and the Workshop Regulation (WVO), meet certain professional, personnel, and spatial requirements. Recognition is granted by the competent state authority.
The requirements include in particular:
- Offerings in the areas of entry process, vocational training, and working area,
- Proof of an in-house social service,
- A concept to promote transition to the general labor market,
- Participation of workshop councils.
Operator of the Sheltered Workshop
Operators can be public as well as independent (non-profit, church, or other) organizations. Individual federal states regulate admission and supervisory requirements through state law and supplementary provisions.
Support and Funding in the Legal System
Funding by Rehabilitation Providers
The funding of services for the workshop for people with disabilities is primarily provided by so-called rehabilitation providers (e.g., the Federal Employment Agency, accident insurance providers, pension insurance providers, integration offices). Social and integration assistance in accordance with SGB IX and SGB XII also contribute to the funding.
Remuneration and Taxes
The remuneration paid to employees is privileged under tax and social security law: as a rule, remuneration from employment in a sheltered workshop is tax-free and not counted towards social benefits (exceptions exist for certain social benefits, such as basic income support under SGB XII).
Rights and Participation Bodies in the Sheltered Workshop
Workshop Council and Women’s Representative
The right to self-representation of the employees is ensured by the workshop council (§§ 5 et seq. WMVO – Workshop Participation Regulation) and a women’s representative (§ 39a WMVO). They have participation rights in essential matters of the workshop, such as working hours, remuneration, or social offerings. Participation is legally binding.
Transition to the General Labor Market and Legal Support Instruments
Supported Employment and Budget for Work
To promote the transition to the general labor market, special legal instruments are available to employees, namely “Supported Employment” (§ 55 SGB IX) and the “Budget for Work” (§ 61 SGB IX). The Budget for Work enables workshop-eligible persons to receive financial compensation if they are employed in the general labor market. Rehabilitation providers and integration assistance support individual vocational integration, including via job coaching and wage subsidies.
Position in the System of Social Security and Inclusion
The sheltered workshop is a central element of integration assistance under German social law. Its function is to realize inclusion and equal participation in working life. The regulations continue to uphold the right to social participation and self-determination for people with disabilities, as has been demanded internationally since the UN Convention on the Rights of Persons with Disabilities (UN-CRPD).
Literature and Further Regulatory Documents
- Social Code Book IX, Part 2 (§§ 219-225 SGB IX)
- Workshop Regulation (WVO)
- Workshop Participation Regulation (WMVO)
- Integration Office Guidelines and Comments
- Recommendations of the Federal Association of Workshops for People with Disabilities (BAG WfbM)
Summary the sheltered workshop in Germany is defined by a sophisticated network of legal norms. It is a protected facility that individually supports, trains, and participates people with disabilities in working life, and is comprehensively integrated into the social security system. It is subject to specific legal requirements regarding recognition, organization, participation rights, and financial resources, thus contributing to the implementation of the objectives of social inclusion and participation of people with disabilities.
Frequently Asked Questions
Which statutory provisions govern the work in a sheltered workshop?
The work in a so-called workshop for people with disabilities (WfbM) in Germany is primarily regulated by the Social Code Book IX (SGB IX). In addition, SGB XII and relevant regulations, such as the Workshop Regulation (WVO) and the Workshop Participation Regulation (WMVO), play a central role. SGB IX contains in particular regulations on the admission requirements, eligible persons, objectives of workshop work, and the legal relations between the workshop, employees, and funding agencies. The WVO specifies requirements for workshops, for example, regarding personnel and material resources, co-determination rights of workshop employees, and the assurance of suitable working conditions. Additional provisions apply to occupational health and safety and labor law, with a particular emphasis on participation in working life and the promotion of individual development. Case law and implementation guidelines from the Federal Employment Agency may further specify the application and interpretation of these provisions.
What rights do employees in a sheltered workshop have compared to employees in the general labor market?
Employees in a sheltered workshop have a special legal status that fundamentally differs from a classic employment relationship. Legally, they are not considered employees, but “workshop employees” according to § 219 SGB IX. As a result, the Working Time Act, the Protection Against Dismissal Act, and other labor law provisions only apply in a limited way. Nevertheless, they are entitled to appropriate work remuneration (so-called “wage replacement process”, usually consisting of a basic amount and a performance-based increment), job promotion, accompanying assistance, and comprehensive protection within the framework of participation law. In terms of social security, they are covered for pension, health, nursing care, and accident insurance, with contributions mainly paid by the funding agencies. Additionally, there is special protection against dismissal and a right to participation within the workshop.
How is admission to a sheltered workshop carried out, and what legal requirements must be fulfilled?
For admission to a WfbM, an application must be submitted to the responsible rehabilitation provider in accordance with § 219 SGB IX, often the Federal Employment Agency. A key requirement is that the person concerned, due to the severity of the disability, cannot yet, not yet again, or no longer work in the general labor market but can provide a minimum amount of economically usable work. In addition, an entry procedure and vocational training area must usually be completed beforehand to determine individual suitability and developmental potential. The decision on admission is made by the responsible funding agency, following a comprehensive assessment. Legal remedies against a rejection are available within the framework of the social administration procedure.
What duties and rights does the sheltered workshop have toward its employees?
According to § 219 SGB IX and the Workshop Regulation, the workshop is obliged to provide suitable working conditions, individual support, and qualification for its employees. It must provide services for participation in working life, promote personal development and capacity of employees, and protect and maintain their health. Another right of employees is co-determination in bodies such as the workshop council, whose work is regulated by the Workshop Participation Act. The workshop is also required to conduct regular goal-setting discussions and prepare development plans. In addition, it must comply with legal requirements regarding remuneration, social security, accident insurance coverage, and granting of leave.
How is the remuneration of employees regulated and what claims exist?
Remuneration is governed by § 221 SGB IX and is not work remuneration in the traditional sense, but rather a work promotion remuneration. It consists of a basic amount set uniformly by the pension insurance providers and a performance-related increment. The remuneration is financed by the workshop’s income and with funds from the responsible provider. Employees also receive work promotion pay, funded from public budgets. The claim to remuneration is legally protected, and workshop employees must not be disadvantaged in cases of payment difficulties. In case of disputes, affected persons may contact the workshop council or, in the further process, the social courts.
What protection against dismissal do employees in a sheltered workshop enjoy?
Employees in a sheltered workshop enjoy special protection against dismissal that goes beyond the general protection for employees. Dismissals are only possible in strictly limited exceptional cases, for example when there are serious violations of workshop rules or significant performance limitations that make continued employment impossible. Before a dismissal, efforts must regularly be made to resolve the difficulties through supportive measures. There is also a duty to consult the workshop council, and for severely disabled employees, approval from the integration office must be obtained (§ 170 SGB IX). Objection can be lodged within statutory deadlines and legal action can be taken before the social court.
What participation and co-determination rights do employees in a sheltered workshop have?
Workshop employees are granted extensive participation and co-determination rights under the Workshop Participation Regulation (WMVO) and SGB IX. They elect a workshop council from among themselves, which is involved in essential matters such as workplace rules, leave, working times, remuneration, and personnel matters. The workshop council has the right to take initiative, to be heard, and can submit suggestions and complaints to the workshop management. The women’s representative is also elected, who specifically represents the interests of female employees. There is also the right to participate in workshop meetings, submit motions there, and obtain information about the economic and organizational matters of the workshop.
