Germany: are Hartz IV sanctions constitutional? (in brief)

Since 15 January German attention has been focused on the Federal Constitutional Court in Karlsruhe as it tries to rule on one the most controversial provisions from the labor reforms put in place between 2003 and 2005 by the then Chancellor Gerhard Schröder, namely the sanctions system. An unemployed Hartz IV benefits recipient (who currently receives €424 per month, to which is added rent and heating for a single unemployed person) may see the amount lowered by 10% for a period of three months if the recipient does not attend a meeting set by the Jobcenter and by 30% for a period of three months if the recipient refuses a suitable or reasonable employment proposal, or occupational training, or if the recipient interrupts a training program that is already part-undertaken. Second offenders who offend within a year will lose 60% of their benefits and third time offenders will lose all of their benefits. Sanctions are more severe for those under 25, where second time offenders lose all benefits for a period of three months. The reasoning is to encourage the unemployed and especially the younger cohorts to seek and secure employment as fast as possible. However can the State restrict some or all of a person’s allocation if it is considered to be the living minimum? It is up to the court in Karlsruhe to determine whether this is so and a ruling is not expected for a number of months.