14th April 2020
The new short-time working allowance is intended first and foremost to support companies that “suffer from massive supply bottlenecks or are compelled to close by the authorities.” MSI's German member ADKL provides further information on the new short-time allowance and how it works.
The short-time working allowance can be paid on short notice. Applications can be submitted now.
The short-time working allowance is not available to those who are marginally employed (in “mini” jobs), apprentices/trainees, pensioners who are working, or temporary employees. If necessary, these employees would have to be dismissed. The usual rules of labour and employment law must be observed with regard to these employment relationships as well.
The short-time working allowance is paid by the German Federal Employment Agency (Bundesagentur für Arbeit) when the following conditions are met:
1.1 Significant loss of work with loss of earnings
There must be an actual significant loss of work. Short-time work cannot be used to assist with purely financial losses.
1.2. Operational requirements
1.3. Personal requirements
1.4. Notification to the Federal Employment Agency
Applications for the short-time working allowance must be submitted to the Federal Employment Agency either in writing or online (e-service) using the appropriate forms (download KUG 101 and download KUG 107).
Please note: The Employment Agency explicitly points out that the employer is required to notify the Employment Agency before ordering short-time work.
Required every month:
Important on point 1)
The Federal Employment Agency has implemented a simplified reporting procedure (status: 17 March 2020). According to this procedure, the following documents must be sent to the Federal Employment Agency responsible for you (https://con.arbeitsagentur.de/prod/apok/metasuche/suche/dienststellen) in order to notify this agency of the short-time working allowance:
The short-time working allowance is paid to employees by the employer, so it must be pre-financed. The Employment Agency will not reimburse the employer for the short-time working allowance until after the payment application has been received and reviewed.
More information available here:
ADKL is an multidisciplinary partnership of experienced and entrepreneurial frame of mind certified auditors, lawyers and tax consultants. We consult numerous national and international companies and entrepreneurs with complex economic, legal and tax issues.
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