Mediation monopoly

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The placement monopoly refers to the employment offices' sole right to place vacancies for job seekers.

The monopoly for commercial job placement existed in Germany under the Reichsanstalt für Arbeitsvermittlung und Arbeitslosenversicherung and the Bundesanstalt für Arbeit from January 1, 1931 to March 31, 1994.

The placement monopoly was first legally enshrined in the law on job placement and unemployment insurance of July 16, 1927 and came into force on January 1, 1931 after a transition period. In 1935 this law was tightened. In § 210 it provided for a punishable ban on private employment agencies. However, the Federal Employment Agency was able to commission institutions or persons to provide employment (Section 54 (1), first sentence). This special regulation was used, for example, when placing artists and actors.

The Federal Constitutional Court confirmed the constitutional admissibility of these regulations. The plaintiff had failed to in Art. 12 para. 1 Basic Law standardized occupational freedom appointed.

In 1991 the European Court of Justice ruled that this monopoly was not compatible with EU law. Since 1994, private employment agencies have been allowed in Germany again.

Individual evidence

  1. § 55 Law on Employment Agencies and Unemployment Insurance of July 16, 1927 (AVAVG), RGBl. I, pages 187, 193
  2. BVerfG, decision of April 4, 1967, Az. 1 BvR 126/65 = BVerfGE 21, 245 .
  3. ECJ of April 23, 1991, C-41/90