The measures decided by the Coalition Committee on 08th March 2020 have now been implemented. After the Federal Government had already passed a corresponding draft law on 10th March 2020, the Bundestag and Bundesrat passed the »Act on the temporary crisis-related improvement of the regulations for short-time compensation« on 13th March 2020 in an unprecedented fast-track procedure. This act was signed by the Federal President on the evening of 13th March 2020 and announced on 14th March 2020, so that it entered into force on 16th March 2020. The following changes to the previous legal situation are regulated by legislative decree:

  • Only 10% (instead of previously one third) of the employees in the plant need to be affected by the loss of working hours (quorum).
  • There is no longer any need for employees to build up a negative working time balance in their working time accounts.
  • Temporary workers shall also be able to receive short-time allowance.
  • The Federal Employment Agency will refund in full the social security contributions to be borne by the employer

The Federal Ministry of Labour and Social Affairs (BMAS) has now announced that the amendments will be implemented with immediate effect and that companies will be able to apply for short-time allowance with immediate effect (from 16th March 2020), taking into account the improved regulations. The regulations are to take effect ex post facto as of 1st March 2020 and the short-time allowance is also to be paid ex post facto as of 1st March 2020.

The planned changes under the »Work of Tomorrow Act« are expected to come into force - as planned - in mid-April 2020. The corresponding draft law is currently being discussed by the Bundestag's Committee for Labour and Social Affairs, which is responsible for this matter.

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