ARTICLE · 30 MARCH 2020

Coronavirus: FAQ Employment Law part 2

HEUKING

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According to the "Act on the temporary crisis-related improvement of the regulations for short-time work compensation", a company can order short-time work due to the worldwide cases of illness caused by the coronavirus

GermanyEmployment and HR

Arietta Von Stechow

Thomas Schulz, LL.M.

Timo Daniel Trefzger

Christoph Gerhard

Jana Maria Siemens

A. Short-time work

1. What is the legal position?

According to the "Act on the temporary crisis-related improvement of the regulations for short-time work compensation" ("Gesetz zur vorüberristeten krisenbedingten Verbesserung der Regelungen für das Kurzarbeitgeld") (see preliminary version of BT publication 19/17893), a company can order short-time work due to the worldwide cases of illness caused by the coronavirus and thus reduce working hours. In the event of loss of remuneration, affected employees can receive reduced working hours compensation (KUG). This benefit must be applied for by the employer. The Federal Government - also in the person of Federal Minister of Labour Hubertus Heil and on its website - has announced that the changes in the law will apply retroactively from March 1, 2020.

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