Short-time allowance. What needs to be considered?

Short-time allowance. What needs to be considered?

The legal requirements for economically necessary short-time work are laid down in the legal provisions contained in §§ 95 to 106 of the German Social Code III (SGB III). There must be a substantial loss of working hours, it must be due to economic reasons or an unavoidable event, it must be temporary, it must be unavoidable.

The Bundestag has decided on alleviations. The short-time work allowance can already be applied for at the Employment Agency and will also be paid retroactively as of 1 March 2020.

Due to the current economic situation caused by Corona, short-time work compensation can be applied for by the employer under eased conditions. The application must be submitted to the responsible employment agency at the company site.

The following simplified requirements now apply:

  • at least 10 percent of the employees have a loss of earnings of more than 10 percent.
  • the loss of work is temporary and unavoidable.
  • overtime and working-time accounts must first be reduced.
  • the build-up of negative working time balances is temporarily avoided.
  • social security contributions must still be paid, but will
  • retroactively from 1 March 2020 to the end of 2020.
  • Short-time allowance must be paid within the same month in writing and justified by the
  • Employers must be notified and applied for at the employment agency at their place of business.
  • Further information, applications and guidelines can be found here: Employment_Agency

If the requirements are met, all employees can be granted KuG in the amount of the respective loss of earnings. This also applies if the specific employee “only” has to bear a loss of earnings of less than 10%.

When calculating the financial relief from short-time work compensation, it should be noted that, for example, recipients of sick pay who were already ill before the start of short-time work are not entitled to short-time work compensation. Likewise, no KUG can be applied for for marginally employed persons (450-euro mini-jobbers) in order to compensate for economic disadvantages caused by the measures to contain the corona virus. The background to this is that employers can only apply for short-time work benefits for those employees who are also registered with the unemployment insurance fund. Marginal employees (450-euro mini-jobbers), however, are exempt from unemployment insurance (Minijob_Zentrale/Shorttime).

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