Set-up, Costs & Funding
What a transfer company costs, how it is financed and which requirements must be met.
Setting it up takes only a few days — a transfer company does not need to be registered or approved.
At least six employees or 5% of the workforce must be affected by the restructuring.
KARENT is an accredited provider and applies for funding from the employment agency.
What is a transfer company?
A transfer company offers employees who are losing their jobs a fixed-term employment contract. The employees leave their former employer and legally become employees of the provider — but they do not work; instead they are placed on zero-hours short-time work. The provider pays the transfer short-time allowance and usually tops it up to 80–90% of the last net salary. Put simply: any restructuring that requires a social plan or a mass-redundancy notification will, as a rule, also meet the requirements for a transfer company.
A typical transfer company costs the employer roughly half as much per month of duration as a month of regular employment.
Cost structure in detail
The cost consists of the employees' wages and salaries on the one hand, and the provider's costs for training, administration and placement on the other. Through the transfer short-time allowance, the employment agency covers a large share of the wage costs.
Social plan & tripartite contract
Clarity about costs and financing is a prerequisite for a good social plan — you will find details on drafting the contract on the next page.
To the transfer social plan →
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