Employees who resign, are dismissed, or sign a termination agreement are often surprised when the Employment Agency does not pay unemployment benefits immediately. The reason is the so-called blocking period. During this time, no benefits are paid and the overall benefit duration is reduced. Whether a blocking period (or waiting period) is lawful depends on two questions: Did the employee act in a way that violates the insurance rules, and was there no good cause for this behaviour? This guide explains the most common triggers, the legal rules, the duration of blocking periods, and the available legal remedies.
Key takeaways
- A blocking period can be imposed if the unemployed person acted in a way that violates insurance rules and did not have a good cause for doing so.
- Typical triggers include voluntary resignation, signing a termination agreement, or dismissal for misconduct.
- No blocking period applies after business-related or health-related dismissals.
- A good cause exists if continuation of the employment was unreasonable, for example due to harassment, discrimination, health risks, or urgent family care duties.
- A blocking period delays the beginning of benefit payments and reduces the overall benefit duration by at least the same length.
- Blocking periods can be challenged by objection and court action.
Contents
Blocking periods after termination
Once a termination has been received, employees must register as job-seeking with the Employment Agency. After the last day of work, they must additionally register as unemployed no later than their first day without employment. If the other eligibility requirements are fulfilled, the agency may still impose a blocking period if both elements are present: the employee caused their unemployment in a way that violates insurance rules, and there was no good cause for doing so. The legal basis is section 159 of the German Social Code III (SGB III).
Requirement 1: Benefit-disqualifying conduct
Benefit-disqualifying conduct (“versicherungswidriges Verhalten”) is assumed when the employee has contributed to their unemployment through their own actions, like a voluntary resignation:
Voluntary resignation
Resigning without having a new employment contract in place is considered self-caused unemployment. The same applies when an employee signs a termination agreement. In both situations, the employee actively triggers the loss of employment.
Misconduct leading to dismissal
A dismissal for behavioural reasons is treated as benefit-disqualifying conduct. The agency assumes that the employee violated contractual duties and therefore caused the unemployment.
Examples include repeated unexcused lateness, refusal to work, verbal abuse, violations of workplace rules, or harassment of colleagues. A summary dismissal may be based on serious breaches such as fraud, forgery of medical certificates, theft, or unlawful use of company data.
No benefit-disqualifying conduct
No blocking period is imposed when the employment ends due to:
- a business-related dismissal
- a health-related dismissal
- a personal dismissal without fault, for example loss of a work permit without personal responsibility
No contractual misconduct:
- in the case of a business-related dismissal (betriebsbedingte Kündigung). In this situation, no blocking period is imposed.
- in the case of a health-related dismissal (krankheitsbedingte Kündigung). Here too, no blocking period applies.
- in the case of a personal dismissal (personenbedingte Kündigung). A blocking period may only be imposed in exceptional cases.
Examples for confirmed blocking periods often include professional drivers losing their licences due to traffic offences:
- Example 1: Blocking period confirmed: A bus driver was stopped by the police in his private car with a blood alcohol level of 1.95‰. His driving licence was confiscated and he was fined for negligent drunk driving. The employer terminated the employment. A blocking period was imposed on the grounds of contractual misconduct.
- Example 2: Blocking period lifted: The employee was a truck driver who had already committed multiple traffic offences before the employment began. During a private trip, he used his mobile phone while driving and received a fine, one penalty point and a six-month driving ban. The employer then terminated the employment. The Higher Social Court lifted the blocking period because such a period is only justified if the contractual misconduct caused the loss of the job. In this case, it was not the mobile phone offence that led to the termination, but the pre-existing accumulation of penalty points and the driving ban.
Missed job-seeker registration
Failure to register as job-seeking within the statutory deadlines is one of the most frequent triggers for a blocking period. Employees must register no later than three months before the end of the contract. If they learn of the termination later, they must register within three days after gaining knowledge.
Missed appointment with the agency
Failing to attend required appointments, assessments, or counselling sessions may also result in a blocking period.
Other possible triggers
- refusing a suitable job offer
- rejecting an approved re-integration or training measure
- insufficient efforts to apply for jobs
Requirement 2: No “reasonable cause”
A blocking period is only lawful if the employee did not have a “good cause” for their action. A good cause exists when continuation of the employment was not reasonable after weighing all personal and workplace circumstances. Examples include harassment, discrimination, serious health risks, justified expectation of imminent termination, or urgent family care duties. More examples are discussed in the section on termination agreements in a separate article.
Consequences of a blocking period
A blocking period has two effects. First, no unemployment benefits are paid during the blocking period. Second, the total benefit entitlement is reduced by at least the same length.
Example: An employee is entitled to 18 months of benefits and resigns without good cause. A 12-week blocking period applies. The person not only loses 12 weeks of payments but also loses one quarter of the total entitlement. The benefit duration is reduced to 13.5 months.
Duration of the blocking period
Blocking periods range from one to twelve weeks, depending on the reason.
| Reason | Duration | Examples |
| Voluntary resignation, termination agreement, dismissal for misconduct | 12 weeks | resignation without new job, behavioural dismissal, summary dismissal |
| Refusal of a suitable job offer | 3, 6, or 12 weeks | depends on first, second, or further refusal |
| Refusal or termination of a re-integration or training measure | 3, 6, or 12 weeks | not attending required training or programme |
| Insufficient job-seeking efforts | 2 weeks | no applications or job search |
| Missed appointment with the agency | 1 week | absence from required meeting |
| Late job-seeker registration | 1 week | missed registration deadline |
What to do if a waiting period is imposed
If the Employment Agency imposes a blocking period, the employee can file a written objection within one month. When the objection is successful, the agency must lift or amend the decision. However, if it is rejected, a formal objection notice will be issued. The affected person can then file a claim with the Social Court. Legal representation is not mandatory but strongly recommended.
A sample objection letter is available for download in the full version of this guide.
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