Short-Time Work in times of COVID-19

In a coalition decision of March 8, 2020, the German government decided to promote support for short-time work (temporarily shortened working hours for employees in existing employment relationships) and liquidity support to limit the economic consequences of the widespread outbreak of COVID-19.

The drafted law, which is planned to be passed on very short notice, is intended to relax the legal requirements for the receipt of compensation for short-time work and an expansion of benefits. Among other things, the following is planned:

• allowing the receipt of compensation for short-time work if only 10% of the workforce is affected by an inability to work.
• waiving the obligation for employers to first subtract reduced working hours from employee’s worked overtime or keeping worked overtime accounts in the negative before they are eligible to receive compensation for short-time work.
• enabling temporary employees to receive compensation for short-time work as well.
• reimbursing social security contributions in full, instead of only partially as it was done in the past.

According to the legislators, the new regulations are to come into force in the first half of April 2020. We will shortly update you in detail on the changes planned by the draft law in a longer article. As always, we will gladly support you at any time in managing the COVID-19 restrictions in your company. Please contact us.