Newsletter May 2020 GERMANY
Further improvements in the granting of short-time working As already presented on March 16, 2020 the German government facilitated access to shorttime work benefits retroactively as of March 1, 2020. Companies were thus able to apply for short-time working right at the beginning of the Corona crisis and protect their employees. On April 22, 2020, the coalition committee agreed to improve the short-time working allowance. At the moment, more than 700,000 companies have already registered short-time work with the Federal Employment Agency.
fluctuations as far as possible in order to avoid short-time work. From 22 April onwards, the following applies in addition: The short-time allowance will be increased, depending on the duration of the short-time work. Up to now, the Federal Employment Agency has paid 60 percent of the loss of earnings for shorttime work and 67 percent for parents. •
As of the fourth month of payment, the shorttime allowance for childless employees who are currently working at least 50 percent less will be increased to 70 percent of the loss of earnings, and as of the seventh month of payment to 80 percent of the loss of earnings.
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For employees with children who are currently working at least 50 percent less, the increase will be 77 percent from the fourth month of payment and 87 percent from the seventh month of payment.
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These increases will apply until 31 December 2020 at the latest.
It has been in force since 01 March: •
Only 10 percent of the company’s employees must still be affected by the loss of working hours (instead of one third as before) in order to be eligible for short-time work compensation.
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Employers are reimbursed in full for the social security contributions they have to pay for short-time work (by the Federal Employment Agency)
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Short-time benefits are also available for temporary workers: Temporary employment agencies can already report a loss of work to the employment agency.
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There is no longer any need to build up negative working time balances in order to use short-time work: Until now, companies have had to use agreements on working time
The nursing staff who are under particular strain during the crisis are to receive an additional bonus: The amount will be up to 1,000 euros.
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