Declaration of assignment: what does it mean?

Many employees feel unsure when they first see a declaration of assignment. That is understandable. However, the declaration is needed for a clear reason: the bank wants to make sure that it will later receive the insolvency benefit (Insolvenzgeld) it has pre-financed.

Important to know:

• The declaration of assignment is not a loan agreement of the employee.
• No wages are waived.
• The employees incur no additional costs as a result.

The declaration only provides that:

• the insolvency benefit is paid by the Federal Employment Agency (Bundesagentur für Arbeit) not to the individual employee,
• but to the bank that has already paid out the wages as part of the pre-financing of insolvency benefit.

In practice, the declaration of assignment and the procedure are explained at a staff meeting .
The Worstbrock-Group prepares this communication together with legal counsel and management and provides clear documents, so that employees know what they are signing and why.