Raising the Stakes: Tougher Fines for German Businesses Neglecting Disabled Workforce
Approximately 20% of impacted businesses excluding those with disabled personnel. - Approximately 20% of properties lack the presence of individuals with severe disabilities
Starting January 2024, German businesses will face steeper penalties for shying away from their legal obligation to hire individuals with severe disabilities. This move is part of a broader drive to foster an inclusive job market.
Employer Obligations
- Hiring Quota: Companies with at least an annual average of 20 positions must appoint individuals with severe disabilities to fill a minimum of 5% of their open roles.[3][5]
- Compensatory Penalties: If businesses fall short of this quota, they are slapped with a compensatory fee for each unfulfilled mandatory position. The fee amounts vary depending on the employer's annual average employment rate of severely disabled individuals.[1][5]
Penalty Tiers
- The penalty for each unfilled mandatory position is as given below:
- EUR 720 per month for employers with an annual average employment rate of zero for severely disabled individuals.[4]
- EUR 720 for each unfilled mandatory position for businesses with at least 60 jobs.[5]
- The fee for smaller employers fluctuates based on their adherence to the quota, with lower rates corresponding to higher employment rates of disabled individuals.[5]
Employer Assistance
- Multiple Offsets: Under specific circumstances, companies may offset one disabled employee against two or three compulsory positions, decreasing the number of penalties due.[3]
- Levy Usage: The funds generated from the compensatory penalties are utilized to encourage the participation of disabled individuals in the workforce, providing assistance in the workplace.[3]
Disclosure and Reporting
- Businesses must submit data on their job count, the number of severely disabled and equivalent workers employed, and the total compensatory fees owed.[3]
In Thuringia, around 25,000 disabled individuals were employed under social security in 2023, with 79% being 45 years or older. The majority of these workers were employed in manufacturing, public administration, or social and health services. Out of the businesses with hiring obligations, around 44.9% complied with their obligations in 2023, compared to 46.4% a decade ago. Approximately 34.3% of employers merely partly adhered to their hiring obligations, marking an improvement from 32.4% a decade ago, as they filled only a portion of the legally required vacancies with disabled individuals.[2]
Markus Behrens, chairman of the management board of the regional office, underscores the significance of promoting the inclusion of disabled individuals in the workforce, given demographic shifts. To address prejudices and foster better integration, it is essential that companies receive support. Rehabilitation specialists are available as points of contact in every local employment agency, and a wide range of promotional tools, such as qualification programs, salary supplements, and technical equipment, are at businesses' disposal.[2]
- In accordance with the community policy, employers facing steeper fines from January 2024 are encouraged to participate in vocational training programs, as these initiatives utilize the funds generated from compensatory penalties to support the employment of individuals with disabilities in various businesses.
- To ensure compliance with the hiring quota and reduce the penalties incurred, businesses might consider availing vocational training opportunities for individuals with disabilities, as this can help create a more diverse workforce and potentially offset some of the compulsory positions required by law.
