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| June 14, 2021

Kurzarbeit – “contribution at the time of short-time work” – amendment approved by Senate

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The amendment of the Employment Act, which brings the so-called kurzarbeit, has received support from the Senate. Due to kurzarbeit, it will be possible to partially compensate paid wages to employers in a situation, when it will not be possible to assign for to employee for objective reasons.

The respective legislation will probably take place from the 1st day of the month following the month, in which it will be promulgated.

The basic rules approved for kurzarbeit:

  • The company may use support for one year at the latest.
  • During the time that kurzarbeit will apply, the employer is obliged to pay reimbursement of wages to the employee reaching a minimum of 80 % of his average earning.
  • The employer will obtain a contribution reaching 80 % of the costs for the compensation of wages and respective levies.
  • The national average wage multiplied by 1.5 will be the top limit for the contribution.
  • The employer will assign work to employees reaching only 20-80 % of the scope.
  • For the specified period, employees, for whom the contribution will be provided, will be protected from dismissal.
  • Companies that use kurzarbeit will not be able to pay dividends in this period and in the following year.

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