What is short-time work?
Short-time working refers to the temporary reduction of regular working hours in a company due to a significant loss of work. This can result in employees working fewer hours or not at all. The aim of short-time working is to avoid redundancies and preserve jobs.
Requirements for short-time work
Certain conditions must be met before short-time working can be introduced:
- Significant loss of working hours: The loss of working hours must be due to economic reasons or an unavoidable event and must be temporary and unavoidable.
- Operational requirements: At least one third of the workforce must be affected by a loss of pay of more than 10%.
- Personal requirements: The employees concerned must be subject to social security contributions.
- Notification to the employment agency: The loss of working hours must be reported to the employment agency.
Short-time allowance
During short-time working, affected employees receive short-time working allowance from the Federal Employment Agency. This usually amounts to 60% of the lost net salary, or 67% for employees with children. The short-time working allowance is tax-free, but is subject to progression. The period of entitlement is limited to a maximum of 12 months, but can be extended in times of crisis.
Advantages of short-time work
- Preservation of jobs: Short-time working enables companies to retain qualified employees and avoid layoffs.
- Flexibility: Companies can react to economic fluctuations without having to make long-term personnel decisions.
- Social security: Despite reduced working hours, employees receive part of their income through the short-time working allowance.
Disadvantages of short-time work
- Loss of income: Employees have to accept financial losses as the short-time working allowance does not replace their full salary.
- Bureaucratic effort: Applying for and processing short-time work requires additional administrative effort for companies.
- Long-term uncertainty: If short-time working continues, employee motivation can decline and there is uncertainty about the future of the job.
Special forms of short-time work: transfer and seasonal short-time allowance
In addition to the general short-time working allowance, there are special variants that are tailored to specific company situations or sectors.
Transfer short-time allowance
The short-time transfer allowance is used when companies are planning long-term staff changes, for example through restructuring or plant closures. Employees affected by such measures can transfer to a so-called transfer company. There they receive transfer short-time allowance for a maximum of twelve months, which amounts to 60% of their lost net salary – 67% if they have a child in the household. The aim is to facilitate the transition to new employment, for example through training measures or individual placement support.
Seasonal short-time allowance
The seasonal short-time allowance is aimed at companies in the construction industry and related sectors that are often confronted with weather-related work stoppages during the winter months. Between December and March, these companies can apply for seasonal short-time allowance to compensate for lost earnings. In addition, supplementary benefits such as supplementary winter allowance and additional winter allowance are available to provide incentives to maintain employment during the bad weather period.
Both special forms of short-time working allowance serve to secure jobs in specific situations and support the transition to new employment.
How digital time tracking from ZMI helps with short-time work
When companies apply for short-time work through the employment agency, they must document exactly when and to what extent work was lost. This evidence is essential in order to correctly calculate short-time working allowance (KuG) and provide the authorities with proof of accounting. Digital time tracking such as that provided by ZMI can provide companies with massive support in fulfilling their documentation obligations in connection with short-time working correctly, efficiently and in an audit-proof manner.
Conclusion
Short-time working is an important instrument for securing jobs and relieving the burden on companies in difficult economic times. Both companies and employees can benefit from this measure through the combination of reduced working hours and financial support from the short-time working allowance.