Order bottlenecks and now? Opportunities of short-time work - an overview - update!


In Germany, too, the consequences of the spread of the corona virus are becoming increasingly dramatic. Supply bottlenecks are arising, orders are declining. Many companies are therefore currently thinking about introducing short-time working in the affected areas or in the entire company.

On 13 March 2020, the Federal Cabinet therefore passed the "Act on the temporary crisis-related improvement of the regulations for short-time working compensation" in a fast-track procedure. The law provides that the Federal Government may issue statutory regulations, limited in time until the end of 2021, which do not require the approval of the Bundesrat, to facilitate access to short-time working compensation, to relieve companies and also to enable temporary workers to access short-time working compensation. Retroactive to 1 March, simplified access rules are thus to apply. The access threshold is to be reached already if only ten percent of the employees are affected by the loss of work. So far, this had to be one third of the employees. In addition, temporary workers are also to receive short-time work compensation, and the Federal Employment Agency is to fully refund the social security contributions that employers normally have to pay for their employees in the future.

With this in mind, employers should currently consider the following when introducing short-time work:

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