Corona crisis: Cabinet extends easier access to short-time work

Companies and employees with problems due to the ongoing corona pandemic will have easier access to short-time working. The Federal Cabinet passed a corresponding ordinance from Labor Minister Hubertus Heil (SPD).

The social security contributions are fully reimbursed by the end of the year. So far, the easing of access to short-time work allowance has been limited to companies that introduce short-time work by September 30, 2021, and contributions have only been fully reimbursed up to this date.

From August 1st to 25th, companies reported short-time working for 68,000 people. According to the Federal Employment Agency, many of the advertisements were no longer due to the Corona crisis. According to the ordinance, companies that are heavily burdened by the long duration of the pandemic and the associated restrictions still need easier access to short-time work benefits and relief for social security contributions – especially in the entertainment industry, in retail, in the travel and tourism industry as well as in the hotel and restaurant sector Catering. This applies, for example, if companies have to introduce short-time working again at short notice even after easing.

Labor Minister Hubertus Heil said: “Short-time work helped in the crisis. Over two million jobs were secured there
is the most stable bridge over a deep economic
Valley.” The number of short-time workers has decreased, said the SPD politician on RTL / ntv «early start». But there are industries that have been hit hard, such as the event industry. “You mustn’t save at the wrong end.” The extension leads to additional expenditure by the Federal Employment Agency of around 1.2 billion euros.