Log inQualification Opportunities Act: How to make your employees fit for digital change
Berlin, March 25, 2019 - Digitization is changing the demands on employees. It is estimated that around 1.3 million jobs will be lost by 2025 due to automation and technological progress. In order to prepare employees for digital change, the Qualification Opportunities Act relies on sponsored further training. Career tutor Katharina Pavlustyk has put together the most important questions and answers.
Today's employees should be able to do the work of tomorrow: This is what the Qualification Opportunities Act stands for, which gives employees greater opportunities to receive further training. Here are the most important questions and answers:
What is the Qualification Opportunities Act?
The Qualification Opportunities Act has expanded access to continuing education funding for employees since January 1, 2019. Politicians are thus reacting to the effects of digitization and automation on the job market.
Anyone who is interested in further training and qualification opportunities is legally entitled to advice from the Federal Employment Agency.
What is the aim of the Qualification Opportunities Act?
The Qualification Opportunities Act aims to promote the further training of employees who are particularly affected by digital structural change. In addition to the unemployed, low-skilled and older employees, the Qualification Opportunities Act is intended to support all employees in mastering digital change - regardless of education, age and company size.
Who benefits from the Qualification Opportunities Act?
The funding initiative should particularly benefit those who want to face increasing digitalization and automation in the world of work. The law also applies to so-called bottleneck occupations in which a shortage of skilled workers exists or is expected, for example in the IT sector.
The Federal Employment Agency and the employer finance further training. The ratio depends, among other things, on the size of the company. What is new is that the employment agency assumes 100 percent of the training costs for employees in companies between 10 and 249 employees if they are severely disabled or older than 45 years.
What else does the Qualification Opportunities Act entail?
The contribution to unemployment insurance was reduced from 3 to 2.5 percent. From 2022 it will increase to 2.6 percent. This relieves employers and employees of around six billion euros a year.
From 1 January 2020, access to unemployment benefit I will be improved: In order to be entitled to it, you must have been insured for at least twelve months within the past two and a half years (and no longer two, as before).
What are the criteria for funding continuing education?
- The further training should prepare the employee for future tasks and should not relate to the current job.
- Completed vocational training or funded further training must have been at least four years ago.
- The training must be done externally - or in the company by an external service provider.
- Training courses that make employees fit for changes in the job market are given priority.
Who funds the training?
The Federal Employment Agency bears part of the training costs if the above criteria are met. The participation depends on the size of the company:
- For companies with fewer than 10 employees, the employment agency pays 100 percent of the training costs, and for 10 to 249 employees up to a maximum of 50 percent. Larger companies are supported with up to 25 percent of the training costs.
- Training for employees who are older than 45 years or severely disabled and who work in a company with up to 249 employees can be subsidized with up to 100 percent.
How is funding applied for?
Employees must apply for funding under the Qualification Opportunities Act both at the Federal Employment Agency and at your employer. The employment agency can advise on further training and decide whether it is to be funded.
