Short-time work phase 5: What rules apply to the newly extended Corona...
Corona short-time work is again being extended from 01.07.2021 to 30.06.2022 ("short-time work phase 5"). The new social partner agreement (hereafter "SPA") is now also available. What is new is that – depending on how companies are affected by the Corona pandemic – a distinction is made between two short-time work models.
The most important information can be found here: Model 1: For companies that have been especially affected For companies that experience a decline in revenue of more than 50% compared to Q3 2019 or are affected by a government-mandated ban on customer-entry, short-time work phase 5 will continue on essentially the same terms as phase 4: Employers will continue to receive the full short-time work allowance. For the time being, however, until the application tool in the electronic account with the Labour Market Service (eAMS) is adapted (which will then enable corresponding information from companies on the decline in revenue in the Labour Market Service system), the allowance will be paid out at a 15% reduction per month – as in model 2. The outstanding 15% of the allowance must be applied for separately as part of an amendment request.Working time can be reduced to 30-80 % of the previous working time on average during the period of short-time work.A further reduction of working time for special economic reasons is still possible if approved by the social partners (Annex 2 of the SPA). This short-time work model is valid until the end of December 2021. Model 2: For all other companies For all other companies, a short-time work model with reduced short-time work allowance and higher minimum working time than before applies: Employers receive a short-time work allowance reduced by 15% compared to short-time work phase 4.Working time can be reduced to 50%-80% of the previous working time on average during the period of short-time work.A further reduction of working time for special economic reasons is still possible if approved by the social partners (Enclosure 2 of the SPA). This short-time work model is valid until the end of June 2022.The following applies to both short-time work models: Duration of short-time work A maximum of 6 months of short-time work can be applied for. Application and consultation It is expected that applications for short-time work phase 5 can be submitted to the Labour Market Service from 19.07.2021. Short-time work with a start date from 01.07.2021 could then be applied for retroactively until 18.08.2021. In all other cases, the application must be submitted before the start of the short-time work period.
Companies newly entering short-time work that did not use short-time work between 01.04.2021 and 30.06.2021 must also complete a consultation procedure with the Labour Market Service and the social partners, usually lasting 3 weeks, before submitting an application. Net replacement rates remain the same Regardless of the model of short-time work, employees will continue to receive 80-90% of the net pay they received before short-time work. Compulsory use of vacation For every 2 months or part thereof of short-time work, employees must now consume at least 1 week of vacation, provided the employee has sufficient vacation credit. If the employee fails to consume vacation, even though he or she is entitled to do so, the company may not charge lost working time to this extent for the short-time work allowance. Short-time work and collective redundancies Employees who are registered for collective redundancies with the Labour Market Service pursuant to Section 45a AMFG can now also be exempted from short-time work. This requires the social partners’ consent (Annex 3 of the SPV). With regard to these staff reductions, there is no obligation to replenish the workforce during short-time work.