Labor market: Easier access to short-time working is to be extended

Labor market: Easier access to short-time working is to be extended

The consequences of the corona crisis can still be felt in companies and businesses. Special regulations for short-time work are now intended to provide relief.

Companies and employees who are in difficulties due to the corona pandemic should have easier access to short-time work.

A spokeswoman for the Federal Ministry of Labor announced in Berlin that the plan is to extend the duration of short-time work benefits by a maximum of 24 months and the simplified access introduced during the crisis by a further three months until March 31, 2022. A corresponding draft ordinance was put into the vote within the government.

“The far-reaching economic consequences of the Corona crisis can still be felt,” said the spokeswoman. “In particular, many businesses and companies suffer from disrupted supply chains.” Companies that have not exhausted the 24-month subscription period by the end of the year can then continue to benefit from the extension to this period in the new year.

Current access restrictions are also to be extended. Among other things, it is currently sufficient if at least ten percent of employees are affected by absence from work. Otherwise at least a third of the employees must be affected.

Companies that can only carry out short-time work thanks to the simplified access should not be excluded from the extension of the subscription period, as the spokeswoman explained. “This means that both manufacturing companies, which have been affected by supply bottlenecks since the beginning of the year, and the contact-intensive service industries particularly affected by the pandemic, would continue to be supported beyond the end of 2021 in the generally difficult first winter quarter.”

Source From: Stern

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