What is short-time work?
Short-time work (Kurzarbeit) means that employees' working hours are temporarily adjusted to the volume of orders. The lost hours are offset by the short-time work allowance (Kurzarbeitergeld) to avoid layoffs. Instead of working full hours, employees work only part of their usual time. The company can offset the costs arising from fewer working hours through the short-time work allowance. Employers pay the allowance to employees in advance. The Federal Employment Agency (Bundesagentur für Arbeit) then reimburses it. This is meant to cushion the employees' loss of income.
Advantages of short-time work
- Lower costs without job cuts Short-time work helps companies cut staff costs without losing valuable skilled workers. When the order situation is uncertain, this can be an important way to protect liquidity.
- Employees stay with the company Employees do not become fully unemployed. They remain part of the company during short-time work. The advantage is that the company can quickly return to full capacity after the crisis without hiring new staff.
- Flexibility for everyone involved Short-time work lets companies respond flexibly to fluctuating order volumes. This flexibility also benefits employees because they keep an income and stay active in the company.
Who can apply for short-time work?
In principle, any company whose working time planning is restricted by temporary economic bottlenecks can apply for short-time work. Many factors can cause this, from a sudden drop in demand to supply shortages. Employers must report short-time work to the responsible employment agency in good time. They must also meet the relevant requirements.
How is the short-time work allowance calculated?
The short-time work allowance is usually 60% of the lost net pay. For employees with children it is 67%. The exact amount depends on several factors, such as the hourly wage and the number of hours lost.
Short-time work as an opportunity for companies
Short-time work is often associated with hard times. Even so, it can be a valuable opportunity for companies. It creates the flexibility needed to get through a crisis while keeping the company able to act in the long term.
For many companies, it is a way to get through difficult phases without drastic measures such as layoffs. At the same time, employees stay motivated and gain a degree of security.
Conclusion
Short-time work is more than an emergency measure. It is a valuable tool that helps companies and employees through difficult economic times. It lets businesses respond flexibly to challenges without losing valuable skilled workers. It also gives employees financial security and prospects. With early planning and the right implementation, short-time work can help a company come out of a crisis stronger and stay competitive in the long term.
