The Court of Justice of the European Union (CJEU) has given authorisation to Member States to deny certain non-contributory social welfare benefits to EU citizens whose right of residence in the host state arises solely out of the search for employment.
The German Federal Social Court had referred the case Jobcentre Berlin Neukölln v Alimanovic to the CJEU seeking clarification on this point. The Alimanovic case concerned a family of Swedish nationals who, although engaging in some temporary employment since their entry into Germany in 2010, are now long-term unemployed. In 2012, the Jobcentre ceased payment of their benefits, taking the view that they were excluded from entitlement to the allowances concerned as foreign job-seekers whose right of residence arose solely out of the search for employment. The referral of this case to the CJEU follows a recent judgement of the Court in Dano where it held that EU citizens who migrate to another Member State with no intention of finding employment may be excluded from social assistance payments. The CJEU has declared that in neither case is the core EU principle of equal treatment contravened.
The Court made clear however that once an EU citizen migrant has established a right of residence in the host state, they will be entitled to social assistance in the same way as a similarly situated national of the host state. It noted that there are two ways in which this right may accrue to job-seekers such as those in the Alimanovic case. Firstly, where an EU citizen who has enjoyed a right of residence as a worker is now in involuntary unemployment after having worked for less than a year, he or she retains the status of worker and right of residence for no less than six months. During this period, he or she is entitled to social assistance. Secondly, where an EU citizen has not yet worked in the host state or where the period of six months has elapsed, he or she cannot be expelled from the Member State as long as he or she is continuing to seek employment and has a genuine chance of being employed. However, social assistance may be refused in this case.
Click here to read the full CJEU judgement.