German ELENA database closes

28th of November 2011

The German Federal Economics Ministry and the Ministry of Labour has announced it is to close the controversial Electronic Wage Verification System (ELENA).

This database is operated by the state pensions agency and requires employers to submit data about pay, work absence, reasons for dismissal and disciplinary action. It was created to streamline the approval and administration of state welfare benefits such as unemployment compensation, education support and child allowances, and reduce the overall level of paperwork demanded
from employers.

But the system became the target for privacy rights groups and its development costs escalated. Since ELENA went live employers have also submitted over 500 million reports and clocked up more time in maintaining the system than under the former manual procedures.


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