The federal government wants to strengthen the state’s ability to act and make administration closer to the citizens and more efficient through modernization, de-bureaucratization and digitalization. To this end, in the “Relief Cabinet” on Wednesday, she passed a draft law to modernize and digitize employment promotion. The aim is to fundamentally modernize unemployment insurance.
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The law is intended to reduce bureaucracy, speed up procedures and prepare the Federal Employment Agency (BA) for the age-related decline in personnel expected by 2032. This should be achieved primarily through automation and digitalization. According to the Digital First model, applications should in future be submitted primarily via the BA’s specialist portal. In addition, those affected no longer have to print out and sign by hand for many applications and notifications to the BA. In the future, a simple email or filling out an online form will often be enough.
The IT association Bitkom welcomes the approach. In particular, the preparation of BAs and job centers for the European digital identity (EUDI wallet) is an important step. Applications and evidence could be processed more easily and completely digitally. However, analogue access should remain for citizens who cannot or do not want to use digital offers.
Video telephony and the end of the mailbox requirement
The draft, which still has to pass the Bundestag and Bundesrat, also makes accessibility and personal appointments easier. Previously, unemployed people had to be physically present at their mailing address every working day in order to receive mail from the employment agency. This obligation should be eliminated and adapted to a mobile, digitalized working world. In the future, employment agencies will be able to regularly hold reporting appointments and consultations via video telephony.
The previous integration agreement will be replaced by a cooperation plan. This should be developed jointly by BA and job seekers and determine the path back into the job market. Only in the event of non-compliance can the authority issue binding requirements by administrative act.
A new “job-to-job test” is being introduced. Employees in companies affected by a crisis or structural change can test a new employer for four weeks, and in exceptional cases up to six weeks. The previous employment relationship is suspended and the previous employer continues to pay the salary. In this way, suitability and qualification needs can be checked without risking unemployment.
Automation and noticeable relief
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Short-time work benefits are also being digitized: From January 2028, employers will only have to submit applications electronically. The data should be able to be transmitted to the BA directly from the payroll software. A transition period applies until the end of 2027.
The government also wants to switch the appointment of company doctors and safety specialists from written to text form in order to reduce bureaucracy. An immediate program to reduce bureaucracy in occupational safety with an annual relief of 135 million euros is also planned. For companies with fewer than 50 employees, the obligation to appoint safety officers is no longer required, which will save around 123,000 of these positions nationwide and modernize rigid regulations as needed.
Digitization Minister Karsten Wildberger (CDU) described the project as an important step for a modern welfare state. Tax-financed services would become easier and digitally accessible. In the future, placements could also be made by email, which would make personal visits to the job center less necessary. The economy should be relieved of around eleven million euros in bureaucratic costs every year. Citizens could save a total of 942,000 hours of time. According to the draft, the BA is investing around eight million euros in its IT for the implementation. It expects annual efficiency gains of a similar amount from 2029.
(wpl)
