25 March 2020 – Expanded short-time work compensation

This item is sourced from COVID-19 Policy Watch co-ordinated by Policy. We are in the process of gathering further information and aligning taxonomies for these items.

Type of Intervention: Wage and income support
Sectors Involved:
Level of Jurisdiction: National
Lead People/Agency:

Overview: If companies have to reduce the working hours of their employees due to supply bottlenecks or an officially ordered closure, employees can receive short-time work compensation. In this way, the Federal Employment Agency compensates part of their loss of earnings. The employer must apply for short-time work compensation.

With retroactive effect from March 1, access to short-time work compensation has been simplified: it is sufficient for a company to apply for short-time work if 10 percent of a company’s employees are affected by lost work.

Previously, one third of the employees had to be affected. In addition, social security contributions are now fully reimbursed by the Federal Employment Agency.
Full details here: https://www.bmfsfj.de/bmfsfj/themen/corona-pandemie/finanzielle-unterstuetzung