ARTICLE · 01 SEPTEMBER 2023

Short-Time Work Allowance – New Framework Conditions

Littler Mendelson

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The simplified crisis regulations governing short-time working in Germany introduced in connection with the COVID-19 pandemic expired at the end of June 2023.

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Lucas Gropengießer

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The simplified crisis regulations governing short-time working in Germany introduced in connection with the COVID-19 pandemic expired at the end of June 2023.
As of July 1, 2023, the regular statutory provisions once again apply for access to short-time working.
This Insight answers common questions regarding the new (old) requirements for receiving the short-time allowance.

Six million employees in Germany were on short-time work ("Kurzarbeit") in spring 2020. 45.5 billion euros were spent by the German government on short-time work benefits between 2020 and 2022. These figures speak for themselves: short-time work allowance ("KUG") is a tried-and-tested instrument for keeping employees in the company during difficult economic times. In May, however, Hubertus Heil, Federal Minister of Labor and Social Affairs, announced that easier access to short-time work allowance would not be extended.

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