With stricter controls and sanctions, the Public Employment Service (AMS) wants to place unemployed people with a small additional income more quickly in jobs above the marginal income limit. This is determined by a corresponding decree of Minister of Labor Martin Kocher (ÖVP). At the same time, companies that employ a significant number of unemployed minors should be subject to stricter controls, the Labor Ministry said on Monday.
“Due to the ongoing shortage of labor and skilled workers and the high number of vacancies, the AMS will intensify the placement of the unemployed in fully insured positions and make it even more binding in the future,” said Labor Minister Kocher. Marginal workers who receive unemployment benefits should first try to find regular work in their own company. Those who show a “lack of initiative” or “uncredible reactions” are threatened with termination of unemployment benefits in the future.
Unemployment benefits must be blocked more quickly
In addition, the decree stipulates that gross dereliction of duty – such as not applying for a job, frustrating work or not accepting reasonable work or training – will lead to unemployment benefits being blocked more quickly in the future. In the future, the unemployed must also be available for the employment service during the exclusion period. Until now, the AMS had stopped switching during the blocking period.
Companies are also encouraged to offer jobs above the marginal employment threshold. On the one hand, funding would have to be offered for this, on the other hand a financing ban could be imposed in the absence of cooperation. Companies that also have vacancies and still rely heavily on marginal employment should expect stricter controls. Other anomalies would be reported to the Financial Police or the Anti-Social Fraud Task Force.
Labor market reform fails because of insignificance
The insignificance was only one of the main reasons for the failure of the labor market reform, which the ÖVP and the Greens had almost negotiated in December. At the time, the ÖVP wanted to abolish the additional income limit for the unemployed, which the Greens in turn rejected. They see it as an important instrument to reintegrate into the labor market and prevent people from falling into poverty. “After no agreement was reached with the coalition partner on a comprehensive reform, the Ministry of Labor and Economic Affairs is now acting within the scope of its legal possibilities,” the ÖVP-led ministry said of the decree.
Longer unemployment with a small job
The marginal income limit is currently around 500 euros – those who earn less do not pay social contributions and taxes. Labor Minister Kocher has repeatedly criticized the marginal income threshold for preventing many from extending their working hours. Analyzes also showed that people who work marginally during their unemployment stay unemployed longer and later earn less in their new job.
According to the ministry, about 9 percent of all marginal employment in 2022 was linked to unemployment insurance. At the same time, an annual average of about 10.5 to 2 percent of all AMS benefit recipients had a marginal job.
Source: Krone
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