Expenditure Compensation Act
| Basic data | |
|---|---|
| Title: | Law on Compensation for Employer Expenses for Continued Pay |
| Short title: | Expenditure Compensation Act |
| Abbreviation: | AAG |
| Type: | Federal law |
| Scope: | Federal Republic of Germany |
| Issued on the basis of: | Art. 74 para. 1 no. 12 GG |
| Legal matter: | Employment Law |
| References : | 800-19-4 |
| Issued on: | December 22, 2005 ( Federal Law Gazette I p. 3686 ) |
| Entry into force on: | October 1, 2005 and January 1, 2006 |
| Last change by: |
Art. 11 G of June 12, 2020 ( Federal Law Gazette I p. 1248, 1275 ) |
| Effective date of the last change: |
January 1, 2021 (Art. 28 G of June 12, 2020) |
| GESTA : | G031 |
| Weblink: | Text of the law |
| Please note the note on the applicable legal version. | |
Since 2006, the German Expenditure Compensation Act has regulated the conditions under which employers are reimbursed for the costs of continued remuneration and maternity benefits (compensation procedure) and how the reimbursements are financially distributed among employers as a whole (allocation procedure).
Reimbursable are expenses for continued remuneration in the event of illness and for bans on employment due to the Maternity Protection Act , for grants to maternity benefit and for certain employer's contributions to social insurance .
The financial resources for the reimbursement of costs are borne by the employers involved in the form of levies U1 and U2 .
Before 2006, equalization and allocation procedures were regulated in Sections 10–19 of the Continued Wage Payment Act of July 27, 1969 ( Federal Law Gazette I p. 946). The Expenditure Compensation Act brought with it two important changes: Firstly, the U2 procedure was extended to all employers regardless of the number of their employees. The previous regulation, according to which only small businesses took part in the U2 procedure , had been declared unconstitutional by the Federal Constitutional Court . Second, since 2006, the costs incurred through continued wages paid to sick employees have also been reimbursable. Previously, the expenses for continued pay in the event of illness were only reimbursed if these had been paid to workers .
literature
- Gerhard Knorr, Otto Ernst Krasney: Continued payment of wages - sickness benefit - maternity benefit. 7th edition. Erich Schmidt Verlag, Berlin 2011, ISBN 978-3-503-04046-9 .
- Michael Kossens: The Expenditure Compensation Act. In: Ways to Social Insurance 2006, pp. 97–103.
Individual evidence
- ↑ Federal Constitutional Court: Decision of the First Senate of November 18, 2003, file number 1 BvR 302/96. Retrieved July 31, 2011 .