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Everything about short-time work

Probably the worst word of the year. For all who have not dealt with it yet.

Attention, short-time work!
Photo: Falco, Fotolia

Why do companies always impose short-time work?

So that they can reduce their costs in economically difficult times without having to lay off employees. The employees work temporarily less; partly not at all. Those who are "set" on short-time working earn less during this time. The loss is mitigated by the short-time allowance paid out by the Employment Agency.

How much less does a short-time worker earn?

That is different. There is a rule of thumb, the so-called net pay difference. This is the difference between what the employee would normally earn (nominal wage) and what he actually earns during the short-time working hours (actual pay). For example, a worker with a child receives a refund of 67 percent of the net wage difference from the Employment Agency, and 60 percent without children.

How long may a company order this at all?

Originally, short-time work was limited to a maximum of six months. But in its new stimulus package, the federal government has already exercised its right to extend this deadline. For 2009, it is 18 months. Ultimately, the duration of short-time work depends crucially on how the economic situation will develop for the sectors affected by the economic crisis.

Can I still be terminated?

Actually not. At least not for business reasons. Because the purpose of short-time work is to avoid that. An employment-related termination could even lead to the fact that the employment agency deprives the company of the consent to short-time work. Nevertheless, there are always cancellations during the short-time work. In such cases, the employment offices strongly recommend that they get information and support from the responsible Employment Agency and involve the works council.

Does it affect my pension?

Yes. The German pension insurance points out that not only the salary, but also the later pension entitlement decreases with short-time work. There is a special rule that obliges the employer to make additional payments. 80 percent of the difference between short-time work and normal earnings is paid by him as a contribution to the pension fund.

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