Qualifizierungschancengesetz

Here is your comprehensive guide for all things related to the Qualification Opportunities Act (Qualifizierungschancengesetz), a funding programme for employees provided by the German Federal Employment Agency. The goal of this program is to improve individuals careers by providing financial aid for their training and education.

Explore our detailed resources to learn how you can take advantage of this wonderful opportunity to improve your employability and advance your career, or as an employer receive funding for the further training of your employees.

We will dive into the essential elements of the Qualification Opportunities Act, its implications, and the opportunities it offers for individuals and businesses. Additionally, we will examine the latest updates to the law, including the introduction of a new training allowance (Qualifizierungsgeld) designed to enhance access to training and upskilling opportunities across various industries and demographic groups.

Challenges in the Current Labour Market

The quickly changing digital revolution and the increasing lack of skilled workers, especially in technology-driven businesses, are two major challenges impacting the German labor market. Due to this circumstance, there is a growing need for the current workforce to undergo extensive upskilling and reskilling in order to adapt to new technological advancements and methodologies.

The need for tech-savvy workers is rising as companies in a variety of industries incorporate digital technologies like automation, big data, and artificial intelligence into their everyday operations.

Instead of only filling available positions, education and training should be seen as strategic investments that will future-proof the workforce against continuous digital developments. Germany is fostering a culture of constant learning and adaptation in an effort to safeguard its economic future and guarantee that its labor market prospers in an increasingly digital environment.

Supporting Workforce Development Through the Qualifizierungschancengesetz

On January 1, 2019, the German government approved the Qualification Opportunities Act (Qualifikationschancengesetz) to support the workforce and solve the difficulties of digital transformation. The goal of the law is to support ongoing professional development for employees by giving them the tools they need to adjust to the rapidly evolving needs of their jobs as a result of technology breakthroughs.

The Act's primary component is its financial support for further employee training, which is regarded as a crucial investment in human capital. This support helps companies address the challenges posed by labor shortages and digital transformations, while also ensuring that employees stay competent and relevant in their roles. The size of the company affects how much these subsidies are. No matter their age, level of education, or size of firm, all employees are eligible for this assistance as long as the training is more than 120 hours long and approved by the AZAV (Accreditation and Authorization Regulation for Employment Promotion).

Updates After April 2024 Improvements

Substantial improvements were made to the act as of April 1, 2024, with the goal of increasing accessibility and enhancing benefits. Two notable modifications include full reimbursement of wage expenses for small businesses and uniform funding levels, which replace previous discretionary methods. Additionally, by eliminating earlier restrictions that limited eligibility to only those employees impacted by structural shifts or experiencing skill shortfalls, the revisions have made the scope of additional training help wider.

When training becomes necessary due to structural changes in a company, employers now have a way to keep employees employed thanks to the introduction of the Qualificationsgeld, a new training allowance. A company-specific agreement or an applicable collective labor agreement is required for qualifying; however, companies with less than ten employees are exempt from this requirement. The training allowance fulfills two functions for employees: it allows them to continue working for their existing company while they acquire new or improved skills, and it provides a stipend equivalent to 60% (or 67% for those who have children) of their net salary. Employers save money by not having to pay salaries during the training time, but they are still responsible for financing the costs of the training.

Eligibility and Application Process

The expansion of the qualifying requirements was a noteworthy addition to the 2024 changes. Funding used to be more restricted, frequently reserved for workers impacted by structural changes or those in industries with severe skill shortages. Many of these obstacles are eliminated by the amended statute, which offers financial assistance to all workers regardless of their age, level of education, or size of employer—as long as they complete training that exceeds 120 hours and satisfies certification requirements.

The measure also simplifies the application procedure to speed up the financing process. Nowadays, employers are the primary applicants. They submit requests to the Federal Employment Agency on behalf of their employees, and the agency assists them with the application process. This approach not only facilitates access to necessary funds but also encourages more employers to invest in the ongoing development of their workforce.

Here's an overview of the criteria determining employee eligibility for funding:

Target group: employees (regardless of age, area, and size of the company) must be affected by (digital) structural change or work in areas with a shortage of skilled workers.
Courses/Training: The imparted skills and knowledge should be future-oriented and directly related to the job. Training mandated by law is not included. The duration of the training must be at least 120 hours.
Training Provider: The training must be conducted by an officially certified provider listed on KURSNET, such as Code Labs Academy. The training cannot be carried out by the company itself.
Previous Use: If the Qualification Opportunities Act has been utilized previously, the last approved training must have occurred at least two years prior to the new application.

If you need support and guidance through the application procedure, feel free to contact our team at any moment. We are here to support you and make sure you have access to all the information and resources you require!

Mutual Benefits for Employers and Employees

Employers used to only pay for a small number of training courses, frequently forcing workers to assume the costs. This dynamic has changed due to the Qualification Opportunities Act, increasing the likelihood that businesses will pay for this kind of training. This not only increases the marketability of employees but also provides a dual benefit for employers.

The act provides businesses with an essential tool for keeping their personnel knowledgeable and up to date. It makes it possible for businesses to invest in staff development more readily by reducing the financial burden of training. This investment boosts the organization's overall competitiveness, strengthens employee loyalty, and improves job satisfaction. Furthermore, the act puts businesses in a better position to differentiate themselves from competitors who have not changed with the times.

A strong training program now plays a significant role in an employee's decision about which company to join, and employer branding has become crucial. Training opportunities rank as one of the top priorities for job seekers, alongside career development, compensation, and a welcoming work environment. As a result, developing an extensive training program significantly raises an employer's appeal.

To sum up, the Qualification Opportunities Act offers strong backing for improving internal training through external providers, lowering the financial burden on businesses, and guaranteeing that employers and employees are adequately equipped to prosper in Germany's fast-paced work environment. The act, which seeks to strengthen the labor market through ongoing education and skill development, is a calculated response to the difficulties posed by the digital revolution.

Find the Right Training Provider

Are you an employer looking to invest in the development of the workforce of your company to stay competitive in the advancing technological field? Code Labs Academy is a recognized and certified training provider and offers bootcamps that bring your employees up to speed with the latest developments in the IT industry and prepare them for the challenges of digital structural change.

Our flexible hours and part-time options make it possible to combine training with work. Contact us now about our corporate training program and we will help you create a tailor-made program for your businesses needs.

Still have questions? Our experts are here to help!

In a personal consultation, our experienced team will assist you in selecting the right course and inform you about the available funding and financing opportunities. Schedule your individual consultation call today to take the next step towards advancing your tech career.