What are the requirements for receiving short-time work benefits?
September 6, 2023 | 30,00 EUR | answered by Christiane Rapp
Dear tax advisor,
I work as the managing director of a medium-sized company and am currently facing the challenge that short-time work is inevitable due to the current economic situation. My employees are concerned about their financial situation and are increasingly asking me about the requirements for receiving short-time work benefits.
The current situation is that we no longer have enough work for all employees due to a decrease in orders, and therefore we need to introduce short-time work. I want to support my employees as best as possible during this difficult time and ensure that they are financially protected despite short-time work.
My concerns mainly revolve around not knowing exactly what requirements my company must meet to receive short-time work benefits. Additionally, I am unsure if I am implementing all necessary steps correctly and ensuring that my employees do not suffer any financial losses.
Therefore, my question to you is: What specific requirements must my company meet to apply for short-time work benefits? Are there specific deadlines that I must adhere to? How can I ensure that my employees are financially protected during short-time work? What support options are available to minimize the burdens on my company and employees?
Thank you in advance for your help and support.
Sincerely,
Carsten Tiefental
Dear Mr. Tiefental,
Thank you for your inquiry regarding the approval of short-time work allowance in your company. It is understandable that you are concerned about your employees in this challenging situation and want to ensure that they are financially protected despite short-time work.
In order to apply for short-time work allowance, your company must meet certain requirements. Firstly, it is important that there is a reduction in work due to economic reasons. This means that there must be a temporary lack of work orders leading to a decrease in wages for the employees. This reduction in work must be due to an unavoidable event, such as a decrease in orders due to the current economic situation.
Furthermore, as an employer, you must submit an application for short-time work to the relevant employment agency. It is important to agree on short-time work in writing with the works council or, if there is no works council, with the affected employees beforehand. Additionally, you must inform the employment agency about the planned short-time work and accurately record the working hours of the affected employees.
There are no strict deadlines for applying for short-time work allowance. However, it is advisable to submit the application as early as possible to ensure the financial security of your employees.
To ensure that your employees are financially protected during short-time work, short-time work allowance is typically paid at 60% of the lost net salary (67% for employees with children). Additionally, as an employer, you can make a supplementary payment to minimize the loss of earnings.
There are also various support options available to minimize the burden on your company and your employees. For example, you can take advantage of government subsidies to reduce the wage costs during short-time work. Additionally, there are consulting services provided by tax advisors like myself who can assist you with the application for short-time work allowance and other financial matters.
I hope that this information has been helpful to you. If you have any further questions, please feel free to contact me. I wish you and your company all the best during this difficult time.
Best regards,
Christiane Rapp
