Employee Transfer (Funding of Transfer Companies)

The state of North Rhine-Westphalia supports small and medium-sized enterprises (SMEs) in establishing transfer companies to enable socially responsible staff reductions and to promptly place the affected employees in new employment relationships. Up to 80% of the eligible personnel costs for key project staff are funded, with a maximum of €6,300 per position per month, as well as for accompanying project staff with up to €6,060 per position per month. The grant is provided as a subsidy and is generally limited to a duration of 12 months. Applications can be submitted continuously, provided the company employs fewer than 250 full-time equivalents, is threatened by insolvency or insolvent, and demonstrates economic difficulties. Conditions for approval include proof of eligibility, the conclusion of a social transfer plan, and the submission of a placement-oriented project concept prior to the disbursement of funds.

The funding offers SMEs an effective framework to avoid dismissal protection lawsuits, maintain industrial peace, and stabilize the remaining workforce. Through professional consulting and structured qualification and placement measures, the duration of stay in transfer companies can be optimized and the placement rate significantly increased. As partners, the regional agencies in NRW as well as G.I.B. – Gestaltung, Innovation und Beratung in der Arbeits- und Sozialpolitik GmbH are available to support companies and works councils in planning, applying for, and implementing the program. This instrument complements the labor market policy offerings of the Employment Agency and helps to make employment transitions transparent and efficient.