Transfer company - GS Consult - Your expert for corporate change

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Transfer company

If companies have to lay off a larger number of employees, the establishment of a transfer company can make a lot of sense. This is a labour market policy instrument indirectly defined in § 111 of the Social Code III. The employees affected by the staff reduction transfer to the transfer company on a voluntary basis following an offer by the company. There they are employed and receive a new employment contract limited to a maximum of twelve months. The transfer to the transfer company takes place through the conclusion of a "tripartite contract" between the employee, the company and, in our case, GS Consult GmbH.

GS Consult GmbH is your first point of contact when it comes to implementing a fair, socially acceptable transfer company or rescue company as well as a company-financed employment company.

Since 1999 we have been carrying out fair and socially acceptable transfer projects in the event of staff reductions in companies - also in cooperation with the works council. Since then, we have successfully accompanied several thousand people from a wide range of sectors throughout Germany into a new employment relationship. Our goal is that the participants in the transfer companies - regardless of whether they are managers or skilled workers - receive a new, sustainable, professional perspective.

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Recognise opportunities

Your advantages

as an employer

Companies affected by staff reductions can benefit from the establishment of a transfer company. Thanks to professional advice, the necessary restructuring can usually be carried out in a socially acceptable manner and without damaging the company's image. The companies benefit from the fact that they do not have to observe notice periods and severance payments are avoided if the employees transfer immediately to the transfer company. In addition, the state-subsidised transfer short-time allowance saves a large part of the personnel costs.

Your advantages

As an employee

A big advantage for the workers is that they do not have to apply for a new job from unemployment. They continue to be employed while they can improve their chances of placement on the primary labour market through qualification measures and professional counselling in the application process. In doing so, they have the opportunity to make use of the many contacts GS Consult GmbH has with potential employers and public institutions. During the period of employment, the employees receive the so-called transfer short-time allowance from the employment agency, which is tax-free and amounts to 60 or 67 per cent of the last net salary. This is usually topped up by the employer. The prerequisite for this is that the participants register with the employment agency at their place of residence. Another important point is that the persons concerned continue to acquire earning points for the pension insurance. If a new job is accepted, the transfer company can be left at any time.

From work to work
Shortening the job search
Professional support in the application process
Contacts in the hidden labour market
Professional reorientation and qualification
Transfer short-time allowance and pension insurance

1. what is a transfer company?

A transfer company, as a provider of "transfer services", takes in the employee for a limited period of time - with the aim of accompanying him or her into a new, suitable employment relationship.

When transferring to the transfer company, the affected worker does not become unemployed, but receives substantive and financial support in finding a new job. During this time, the affected worker is employed by the transfer company and receives remuneration. The transfer takes place through the conclusion of a "tripartite contract" (employee/company/GS Consult GmbH). The term begins and ends on the dates specified in the tripartite contract.

Exception: The employee terminates the tripartite contract before the expiry of the contract term because he is transferring to a new employment relationship.

In a transfer company, the employee is taken over into a temporary employment relationship with GS Consult GmbH that is subject to social insurance contributions.

2. who can transfer to a transfer company?

The offer to join the transfer company is made by the employer to those affected by the job cuts.

The basis is the "profiling" (assessment of the current situation with an analysis of strengths and weaknesses) necessary before the start of a transfer company.

Employees who are subject to special statutory or collectively agreed protection against dismissal (for example maternity protection) are not entitled to join the transfer company. Those who can draw a statutory pension without deductions after expiry of the individual notice period are also not eligible to join the transfer company.

What are the advantages of the transfer company for me as an employee?

The workers concerned do not apply for a new job from unemployment. They are in an employment relationship while you improve your chances of placement on the primary labour market through numerous measures (for example, through qualifications).

GS Consult GmbH's contacts with potential employers and public institutions, such as the employment agency, are particularly helpful in the acquisition of vacancies.

4. report to the employment agency?

In order to meet the requirements for receiving transfer short-time allowance, each participant in a transfer company must register as a jobseeker with the employment agency at the place of residence.

The temporary employment with GS Consult GmbH is recognised by the Employment Agency as a period of employment.

What does the work in the transfer company look like?

In the transfer company, the participants do not work operationally, but actively use the time to successfully place applications with potential new employers.

They receive intensive counselling and support.

In addition, each participant in the transfer company is given the opportunity to gain further professional qualifications.

6. how much is the fee?

The employee concerned receives the so-called transfer short-time allowance from the Federal Employment Agency for the duration of the contract. This amounts to 60 or 67 per cent (with children) of the last net salary.

This sum is usually topped up by the previous employer. The transfer short-time allowance is tax-free. However, it is subject to the progression proviso: this means that it is used to determine the tax rate for the taxable income. For example, in the case of joint assessment with the partner or if there is other income.

What happens at the end of the transfer company?

If a participant does not find a new job during her time with GS Consult GmbH, she must register as a job seeker with the competent employment agency in accordance with § 37b of the Social Code III at least three months before her fixed-term employment contract expires.

If this notification is not made in time, this leads to a blocking period and a reduction in the period of entitlement to unemployment benefit.

8. receiving unemployment benefit?

If placement is not successful by the end of the period at GS Consult GmbH, the person concerned is granted unemployment benefit for the reference period stipulated by the applicable law.

9. what happens when a new job is accepted?

Before signing a new employment contract, the participant may suspend the employment contract with GS Consult GmbH for a maximum of six months.

He or she then has the option to revive the GS Consult contract if the new employment ends after a trial period and the remaining time in the transfer company is at least one month.

This does not apply in the case of dismissal for reasons of conduct. However, the person concerned cannot add the time with another employer to the individual period of stay in the transfer company. This means that the agreed end of the transfer company cannot be exceeded.

In principle, the notice period is two weeks according to the tripartite contract. If they take up a new job, participants can leave the transfer company at any time earlier if they so wish.

10. is secondary employment possible?

Secondary employment already performed during employment with the previous employer is not taken into account if the amount remains the same.

On the other hand, remuneration from a secondary job that is started during the period of short-time transfer work is credited to the short-time transfer worker's allowance.

An already existing secondary activity must therefore be documented with a written confirmation at GS Consult GmbH.

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