In order to receive short-time work allowance (“Kurzarbeitergeld”, KuG), a company must experience a significant loss of work. If orders or sales markets are lost as a result of the US tariffs, there may be economic reasons for a loss of working hours. In its notification, the company must justify the effects on its business and the extent to which this causes a loss of working hours, for example which activities can no longer be carried out. If the other requirements for short-time working allowance are also met for the loss of working hours, short-time work allowance can be paid. In particular, the loss of working hours must be of a temporary nature.
The other requirements for receiving short-time allowance in addition to the significant loss of working hours are:
-
A company must employ at least one employee on a regular basis and
-
at least one third of the employees in the company
-
must be affected by a loss of earnings of more than ten percent of their gross monthly salary.
A company in the above sense does not necessarily mean the entire company. It can also only be a company department.
In the notification, the company must also clearly explain and justify how it can return to its previous working hours/utilization within the period of entitlement to short-time work allowance, for example by opening up new sales markets or through a new pricing policy. Waiting for a possible abolition of customs duties is not sufficient.
