Employees in Germany are entitled to an allowance where
their working hours are reduced as a result of the COVID-19
pandemic. But does this entitlement extend to managing directors?
This article examines when and under what conditions managing
directors can claim the short-time working allowance.
The much-vaunted COVID-19 ‘second wave' is well
underway and it will most likely accompany us through the winter
months and far into 2021. This will exacerbate the tense economic
situation in many sectors and short-time working (known as
‘Kug') will remain in focus. The number of employees on
short-time working, especially in small and medium-sized
enterprises, has been at a high level since May, but nevertheless
declined over summer. The latest developments suggest that
applications for short-time working allowances will increase again;
even more so relevant in view of the extension of the short-time
working allowance adopted by the Federal Cabinet in September.
