Germany's top court ruled yesterday that sanctioning jobseekers deemed uncooperative in the search for work was illegal in some cases, reports The Local.de. Judges at the Federal Constitutional Court in the city of Karlsruhe said that the total cut in benefits should never be allowed to exceed 30%, and in cases where lower payments would cause "extraordinary hardship", no penalties should be imposed at all.

The sanctions allowed under Germany's so-called Hartz IV benefits system, which combines social welfare and long-term unemployment payments, have long been controversial with critics saying they violate the right to a dignified existence. Under the current rules, a jobseeker's monthly unemployment benefit can be docked if they fail to turn up for a job interview, turn down employment or miss training opportunities. In extreme cases, recipients can lose up to 60% of their benefits and repeat offenders can be cut off altogether for three months. But judges in Karlsruhe found that the 60% reduction was "unreasonable given that the burden it entails seriously encroaches upon the minimum standard of living guaranteed by fundamental rights.” Furthermore, judges said that a 30% cut was "only permissible if the sanction can be waived in cases of extreme hardship" and if its three-month duration can be shortened depending on the jobseeker's cooperation. A single jobseeker with no children currently receives €424 a month, while couples receive €764.