German State Aid – June Changes To Kurzarbeitergeld

On 22 June 2022 the German Federal Cabinet has – once again – extended the special rules and regulations for short-time work benefits (Kurzarbeit") by three further months until 30 September 2022.

Russia's invasion into Ukraine and the global disruptions in supply chains following from Putin's aggression intensified the pressure on practically all production lines. So, while the pure Corona related simplified regulations regarding short-time work benefits will expire on 30 June 2022 – as planned – short-time work benefits will continue to be available for companies if 10 percent of the staff of a company are affected by loss of work.

Looking back

German State Aid Kurzarbeit and the Corona-related simplified access to it should have expired by the end of March 2022. Germany's Secretary of Labour and Social Affairs, Mr. Hubertus Heil (SPD), however, extended the Covid-19 privileged rules and regulations until 30 June 2022.