Short-time working money
Short-time work money is always a relief when a company has fallen into a crisis through no fault of its own. This is often the case with the Corona pandemic. Loss of orders and customer cancellations due to corona are reasons. At least 10 % of the employees and 10 % of the employee's working time must be affected.
The goal is to keep the employees instead of dismissing them. For this reason, there are subsidies from the employment agency for wage costs. Due to the economic consequences of the Corona crisis, a new version of the short-time work allowance has been in force since 18.03.2020. It was simplified for employers and supplemented with advantageous measures.
Consider beforehand with whom short-time work makes sense, so that the productivity of your company does not suffer. Hold discussions with the employees concerned. Explain the reasons, consequences and advantages of short-time work money.
The payment of short-time work money always relates only to the hours registered as short-time work. For example, if someone is reduced from 40 hours a week to 30, these 30 hours are normally paid 100% by the employer. Only the remaining hours in which the employee is not allowed to work are paid with reduced hours compensation. Here, for example, 10 hours. For employees without a child, the reduced hours compensation is 60% of the net pay difference in the entitlement period, and 67% for employees with a child.
A written declaration of consent from the employee must be sent with the notification of loss of work. The employer must write the letter and the employee must confirm his or her consent, e.g. on a document signed on both sides or by two e-mails.
Short-time allowance is paid from the month in which the notification is received by the employment agency.
Before short-time work begins, overtime must be compensated with money or time off. Afterwards, the employees concerned may no longer work overtime. Time sheets must be kept for exact days over the months concerned.
As every month, you must pay your employees' salaries as normal. You must document these payments in the payroll list and attach them to the application, as well as the time sheets. You should submit the application for reimbursement to the employment agency quickly (but within 3 months at the latest) after the payment round. You will then receive the reduced hours compensation back. The social insurance contributions for the lost working hours in short-time work are also reimbursed at 100%.
Translated with www.DeepL.com/Translator (free version)
Questions and answers
Does short-time work also apply to managing directors and sole proprietors?
The short-time working allowance applies only to employees subject to social insurance contributions. A shareholder-managing director who is exempt from social insurance is not entitled to short-time work money.
Can I also receive short-time work money for employees who have resigned or whom I have dismissed?
No, there's no way. By the time the notice is given, it'll be too late for short-time money. So don't act rashly. Talk to your employees about short-time work as options and find a solution together. The goal is always to prevent dismissals. Even if an employee wants to quit his job himself out of panic, inform him about this option instead of giving notice.
What happens if the employee falls ill during short-time work?
If the employee has a certificate of incapacity to work (ABU), the reimbursement of continued salary payments by the health insurance company will take effect. Short-time work is then suspended during the illness.
What happens if the employee does not agree to the short-time working money regulation?
Talk to your employee. Make it clear to him or her that you then see no other chance of keeping the job in this form. If your company's existence is threatened by inflexibility, you are obliged to point out termination as a last resort.
What deadlines must be met?
The notification of the loss of employment in the form of the corresponding application must definitely be submitted to the employment agency by the last day of the month. This can be done by post, fax or e-mail. Just to be on the safe side, make sure that you have a receipt to submit it on time.
What about holiday pay for employees on short-time work?
The employee receives the holiday pay during the period of reduced working hours in full. This also applies on public holidays.
Is short-time work compensation also possible for employees in temporary employment?
Employees in temporary employment - so-called temporary workers - can also work reduced hours and are therefore entitled to reduced hours compensation.
Checklist
Document
Application for short-time working allowance
Form for reimbursement of the short-time work allowance by the employment agency
Employment Agency - https://www.arbeitsagentur.de/
Settlement list
Formular der Abrechnungsliste für die monatliche Abrechnung als Anlage zur Erstattung
Arbeitsagentur - https://www.arbeitsagentur.de/
Display of work loss
Form for applying for the short-time work allowance by reporting the loss of working hours
Employment Agency - https://www.arbeitsagentur.de/
Helpful Links
Employment Agency
You can find up-to-date information on short-time work on the Employment Agency's website. There you will also find information on many other topics such as unemployment benefit II for solo self-employed and freelancers and unemployment benefit I for employees who have been given notice.
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Digital tax advisor on short-time work
The modern tax consultancy Gostomzik provides valuable information about short-time work money on its website in a compact and understandable form. There you will also find constantly updated information.
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Video about short-time work compensation
Important information packed in an interview between a tax expert and a business expert
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Addresses
SMWA - Sächsisches Ministerium für Wirtschaft, Arbeit und Verkehr
Wilhelm-Buck-Str. 2
01097 Dresden
VISIOTAX Steuerberatungsgesellschaft mbH
Wehlener Straße 46
01279 Dresden
Arbeitsagentur
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Agentur für Arbeit Sachsen
+49 371 9118 129
Sachsen.Arbeitnehmer@arbeitsagentur.de
Arbeitsagentur Hotline
0800 45 555 20