Entitlement period and simplified access to short-time work extended again

The Ordinance on the Extension of Short-Time Working Allowances (Kurzarbeitergeldverlängerungsverordnung - KugverlV) extends until the end of March 2022 the possibility of being able to use the maximum entitlement period for short-time working allowances of up to 24 months. This extension applies to businesses that have not exhausted the maximum entitlement period by the end of 2021. In the new year, they would then have the option of continuing to make use of the extension of the entitlement period.

In addition, the relief and special regulations for the payment of short-time working allowances will be extended for the same period.

The previous full reimbursement of social security contributions will be reduced by half.

The amendments shall enter into force with effect from 1 January 2022.

• The simplified access to short-time working allowances will continue to apply until the end of March 2022:
  • It is still sufficient if at least ten percent of the employees are affected by the loss of working hours. The threshold would be one third of the workforce without this extension.
  • Moreover, employees also do not need to continue to build up negative working time balances before short-time working allowances and seasonal short-time working allowances can be granted.
• Temporary workers may still receive short-time working allowances until the end of March 2022.
• Half of the social security contributions which the employer has to pay alone during short-time work is reimbursed on application.

Employers are reimbursed a further 50 per cent of social security contributions if their employees take part in continuing vocational training and education during short-time work, which is subsidised under certain conditions. In addition, the costs for these continuing vocational training and education courses can be reimbursed in full or in part, depending on the size of the company.