Germany to digitise unemployment benefit processes

The German government has passed a draft law which would largely digitise the process of applying for and managing unemployment benefits (Arbeitslosengeld or ALGI).

Jobcenter to digitise Arbeitslosengeld 

Germany’s unemployment benefit application process is currently only partially digitised. Benefit recipients must regularly check their physical post box for correspondence from the Jobcenter, such as job suggestions or invitations to in-person meetings, and reply promptly.

However, if a new draft law is adopted, the Jobcenter would adopt a “digital first” principle: the process of registering as unemployed and applying for short-term unemployment benefits would be largely digitised.

Correspondence between the unemployment office and benefit recipients would be fully digitised, giving recipients more flexibility during the job-seeking process.

The process by which employers can apply for their employees to receive short-time work allowance (Kurzarbeitergeld) will also be digitised.

Crucially, these changes will apply only to unemployment benefit (ALGI) claims, not to long-term unemployment benefit (Bürgergeld, recently renamed Grundsicherung) claims.

ALGI is available to unemployed people in Germany who have made at least 12 months of unemployment insurance contributions within the last 30 months. Most people are eligible to claim the benefit for up to 12 months. Once their eligibility expires, they may be eligible to claim Grundsicherung.

Does this mean ALGI recipients can leave Germany during a job search?

Until now, the paper-heavy process of applying for and claiming unemployment benefits has meant recipients were relatively bound to staying at their registered address throughout the benefits claims and job-seeking process, or at least not leave for much more than a week.

However, the new digital system means claimants will have more flexibility to carry out their job search from different locations. Counselling sessions with the Jobcenter will also be conducted via video calls.

This switch is particularly interesting for internationals in Germany, who might be tempted to double their online job search period while visiting family and friends in their country of origin.

However, claimants must still report any prolonged stays away from their registered address in Germany and ensure that any prolonged stays do not breach agreements with the Jobcenter.

If the draft law passes a vote in the German parliament, the “digital first” policy is likely to be adopted by the end of November this year.