Thuringia extends the guarantee program for employee participation until 2028

Thuringia extends the guarantee program for employee participation until 2028

According to a report by www.zeit.de, the Thuringian Ministry of Finance has announced that the program to provide guarantees for employee shareholdings in companies has been extended until the end of 2028. This program has existed since 1995 and protects employee participation in the event of the company's insolvency.

The Free State's guarantees include the assumption of 80 percent of the paid-in financing amount in individual cases, with the maximum amount being 250,000 euros per company. For employee financing in the form of loans, the maximum amount is one million euros per company, and the minimum term of employee financing is five years in both cases.

This extension of the program was supported by Finance Minister Heike Taubert (SPD) on the grounds that employee financing offers companies the opportunity to retain employees and retain skilled workers, especially for start-ups. The program is primarily aimed at silent partnerships in which companies remain free in their decisions.

From a financial perspective, the extension of the guarantee program can have a positive impact on the business landscape in Thuringia. By securing employee participation, companies are encouraged to retain skilled workers and support newcomers. This can lead to increased economic stability and long-term investment in the labor market. In addition, the extension of the program is expected to help strengthen workers' trust in their employers and strengthen workforce loyalty to companies.

These types of guarantee programs are an effective tool for promoting business development and employee retention and help create a favorable business climate. This extension of the guarantee program in Thuringia can potentially provide positive impulses for the labor market and regional economic development.