Update Short-time work

In March, the extension of the maximum duration is to be decided by law. We have summarized the most important updates on short-time work.   


Maximum duration of short-time work

The maximum permissible duration of short-time work is expected to be extended by two months, from the current 24 months to 26 months. Companies that have been on short-time work continuously since the start of the Covid 19 pandemic will be able to extend short-time work until May 31, 2022. The specific legal change as well as adjustments to the short-time work directive remain to be seen.  


Mandatory consultation procedure

Companies that were not on short-time work in phase 4 and now apply for short-time work as of March 1, 2022 are required to complete a consultation process. This only applies to initial requests, but not to requests for extensions.  


Reduction of aid

Another new feature is that the short-time work allowance will be cut by 15% for all companies without exception as of April 2022.  

The unreduced aid at the rate of 100% for particularly affected companies will end on March 31, 2022. Particularly affected companies include those that have been hit by a 50% drop in sales in the 3rd quarter of 2020 compared to 2019, as well as those whose business premises were not allowed to be entered due to a regulation. 

Note: For particularly affected companies, it is possible to submit a modified request to receive the 100% subsidy until March 31, 2022, if they had only requested the reduced subsidy. Those companies that were directly affected by the ban on entering their business premises will receive the unreduced subsidy from November 2021 up to and including March 2022. If the work time loss originally specified in the short-time work request has increased, this change must also be recorded in the modified request. 


Reminder: Form version 10

The social partner agreements for phase 5 (form version 10) must be used for all short-time work applications starting from 1.7.2021. 

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