1.1 – BSG, judgment of 09/23/2025 – B 4 AS 18/24 R
Basic income support for job seekers – Cancellation – Offsetting – Offsetting situation – Reimbursement
Legal question:
Is the job center allowed to declare the offsetting of a reimbursement claim against current claims of the benefit recipient in the reimbursement decision itself within a single notice, or does an effective offsetting require a legally valid reimbursement claim?
BSG:
The hearing has been cancelled.
1.2 – BSG, judgment of 09/23/2025 – B 4 AS 8/24 R
Basic income support for job seekers – exclusion from benefits – EU citizens – employees – habitual residence – detention abroad – social assistance – exceptional hardship – pandemic
Legal question:
Does a three-month imprisonment in the home country constitute a significant interruption of habitual residence in Germany, with the consequence that the five-year period pursuant to Section 7 Paragraph 1 Sentence 4 Clause 1 of the German Social Code, Book II (SGB II) begins anew after release from prison?
BSG:
The habitual residence of EU citizens requires a prognosis regarding their future residence.
Note by Detlef Brock:
The Federal Social Court (BSG) ruled in its judgment of 23 September 2025 (B 4 AS 8/24 R) that the plaintiff's appeal was successful: The appeal judgment was overturned and the case was remanded.
The plaintiff, as a Union citizen, was not entitled to benefits on the basis of a continuing employee status, since he had not made himself available for labor market integration in the event of duly confirmed involuntary unemployment.
The court left open the question of whether the exclusion from benefits pursuant to Section 7 Paragraph 1 Sentence 2 No. 2 of the German Social Code, Book II (SGB II) applies to formerly self-employed persons.
The Federal Social Court (BSG) could not definitively decide whether a possible exclusion from benefits would be waived because the plaintiff had been habitually resident in Germany for at least five years.
The Higher Social Court of North Rhine-Westphalia (LSG NRW) had assumed that the three-month detention in the home country constituted an interruption of the habitual residence. However, the Federal Social Court (BSG) emphasized that this required a forward-looking assessment at the time of extradition.
Source: www.bsg.bund.de
Note by Detlef Brock
: Absolutely correct decision: The habitual residence requires a prognosis (cf. BSG, judgment of 11.09.2024 – B 4 AS 12/23 R).
A lawful residence is not a prerequisite for habitual residence within the meaning of the exception in Section 7 Paragraph 1 Sentence 4 of the German Social Code, Book II (SGB II). The decisive factor is the prognosis taking all circumstances into account.
1.3 – BSG, judgment of 09/23/2025 – B 4 AS 12/24 R
Basic income support for job seekers – Law firm – Power of attorney – Claim for remuneration – Assignment
Legal question:
What conditions apply to the effective assignment of the claim for reimbursement of costs pursuant to Section 63 of the German Social Code, Book X (SGB X) to the authorized lawyer by means of an assignment clause in the power of attorney, and when is such a clause invalid as being surprising within the meaning of Section 305c of the German Civil Code (BGB)?
BSG:
Law firms are generally allowed to have claims for reimbursement of costs assigned to them.
Note by Detlef Brock:
In principle, probably yes – however, the question has not been definitively decided.
A decision on the merits could not be reached because the client still needs to be joined as a party to the legal proceedings.
However, the Federal Social Court (BSG) provided guidance: The assignment clause in the power of attorney is valid and not unusual within the meaning of Section 305c Paragraph 1 of the German Civil Code (BGB). It is closely related to the mandate.
Source: www.bsg.bund.de
2. Decisions of the state social courts on basic income support under the German Social Code, Book II (SGB II) / citizen's allowance
2.1 – LSG NSB, judgment of September 10, 2025 – L 6 AS 613/24
Reimbursement for medical certificate – only €5.36
No entitlement to reimbursement of costs (e.g. travel expenses) in connection with claiming additional needs for expensive nutrition.
Note by Detlef Brock:
Recipients of citizen's allowance are not entitled to reimbursement of additional costs beyond those covered by the medical certificate.
Costs such as these (16.90 €: certificate 5 €, travel expenses 9.90 €, appointment scheduling 1 €, submission 1 €) are not reimbursable under § 65a para. 1 sentence 1 SGB I.
A claim under § 670 BGB is also excluded (cf. SG Braunschweig, Judgment of 13.01.2016 – S 17 AS 3211/12).
Source: voris.wolterskluwer-online.de
2.2 – LSG Hamburg, judgment of May 25, 2025 – L 4 AS 56/24
No retroactive entitlement to benefits in case of a late application for continued benefits
An applicant suffering from a severe mental illness submitted her application for continued benefits too late. Benefits cannot be granted retroactively for four months.
Note by Detlef Brock:
Services are not provided for periods prior to the application date.
No obligation to produce: The job center is not obliged to investigate the reasons for incomplete applications or to conduct home visits.
Reinstatement to the previous status is not possible, as Section 37 Paragraph 2 Sentence 1 of the German Social Code, Book II (SGB II) does not contain a time limit provision.
Even leniency under case law is not an option here, since the job center immediately resumed benefits after the application was submitted and the plaintiff was unemployable during the gap.
Legal tip:
The principle of granting leniency applies only to exceptional hardship cases with disproportionate legal consequences. It does not apply to minor gaps in benefits (here: 8 days) (see LSG NRW, decision of 17.04.2009 – L 19 B 63/09 AS).
3. Decisions of the social courts on basic income support (SGB II / citizen's allowance)
No
4. Decisions of the State Social Courts on Employment Promotion Law (SGB III)
4.1 – LSG BW, judgment of July 23, 2025 – L 3 AL 3314/22
No entitlement to insolvency pay – no second insolvency event in case of ongoing insolvency
Note by Detlef Brock:
A new insolvency event does not occur as long as the insolvency persists.
Insolvency does not end simply when individual obligations are fulfilled (cf. BSG, Judgment of 09.06.2017 – B 11 AL 14/16 R).
Guiding principles: see www.sozialgerichtsbarkeit.de
5. Decisions of the State Social Courts on Social Assistance (SGB XII)
5.1 – LSG Rheinland-Pfalz, Judgment of 04.09.2024 – L 4 SO 5/24
Reasonableness of bearing funeral costs even in cases of prolonged separation
Note by Detlef Brock:
The income of the partner must also be taken into account.
The plaintiff can reasonably be expected to bear the costs, among other reasons because she receives a widow's pension.
5.2 – SG Ulm, Decision of 06.08.2025 – S 13 SO 2014/25 ER
Forwarding an application for school support for a child with diabetes may be an abuse of rights or ineffective.
Guiding principles: see www.landesrecht-bw.de
6. Decisions on asylum law and the Asylum Seekers' Benefits Act (AsylbLG)
6.1 – LSG Hessen, Decision of 17.09.2025 – L 4 AY 9/25 B ER
No reduction in benefits pursuant to Section 1a Paragraph 4 of the Asylum Seekers' Benefits Act (AsylbLG) beyond six months
Reductions must always be reviewed in a proportionate and individualized manner.
More than six months is not permitted.
Source: anwaltskanzlei-adam.de
6.2 – SG Heilbronn, Decision of 22.09.2025 – S 15 AY 1887/25 ER (not legally binding)
Exclusion from benefits in so-called Dublin cases is unlawful without a BAMF determination regarding the possibility of leaving the country.
Legal tip:
see also SG Neuruppin, decision of 12.08.2025 – S 27 AY 14/25 ER.
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Note on citation style:
Unpublished judgments, annotations or case reviews may only be cited with source attribution:
Source:Tacheles Case Law Ticker Week XX/2025 – Author: Detlef Brock.
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Author: Detlef Brock, editor of Tacheles.
Source: Tacheles legal case ticker
