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ARTICLE · 11 MARCH 2020

COVID-19 – FAQs Regarding Short-Time Work And Short-Time Work Allowance

Short-time work is defined as the temporary reduction in operational working hours (including the complete cessation of work for a certain period of time

GermanyEmployment and HR
Frank Brandmaier
Frank Brandmaier

The coronavirus is all over the news. What German employers need to consider now.

What is short-time work?

Short-time work is defined as the temporary reduction in operational working hours (including the complete cessation of work for a certain period of time, so-called "zero working hours" [Kurzarbeit Null]. This can apply to the entire operation or to selected organizational units thereof.

What is the purpose of short-time work? Why is short-time work worth having?

Where short-time work applies, employees work less (on a temporary basis) and, accordingly, receive less remuneration from their employer during this period. This allows employers to reduce labour costs if, for example, supply chain interruptions occur in connection with the coronavirus outbreak or if an operation has to be shut down temporarily due to protective measures imposed by the government.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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