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‘Corona Pandemic‘: Relief for short-time working allowance - retroactively to 1 March 2020

In order to support employees and companies in the event of trouble due to the ‘Corona crisis‘, the legal basis has been created - at very short notice - for temporarily facilitated access to short-time work compensation. The provisions of the ‘Act on the temporary crisis-related improvement of the regulations for short-time work compensation‘ come into effect retroactively as of 1 March 2020.

This Act provides for the following significant facilitations in comparison to the previous legal situation:

  • Only 10 percent of the employees in a company must now be affected by loss of working hours (instead of one third as up to now).
  • The social security contributions will be reimbursed in full for employers they have to pay for short-time working.
  • In companies that make use of agreements on working time variations, no negative working time accounts are set up.
  • At this stage, temporary employment agencies may also report a loss of working time to the employment agency.
  • The local employment agencies are the contact for all companies.

Source: Act on the temporary crisis-related improvement of the regulations for short-time work compensation (BGBl (Federal Law Gazette) 2020, Part I No. 12, p. 493 seq.

See also: Website of the Federal Ministry of Labour and Social Affairs

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