More than six million people in Germany on short-time work - this also affects the salaries paid, as new figures show.
- The corona crisis has had a major impact on the German labor market.
- More than six million people in Germany are or have been on short-time work.
- This also has an impact on the salaries paid in Germany.
Corona crisis: Effects on salary payments
Update from August 12th : Many employees are or were on short-time work as a result of the Corona crisis . This has consequences for the salaries paid , as reported by Spiegel Online, among others. As a result, the average gross monthly earnings of employees in the second quarter fell by 2.2 percent compared to the same period of the previous year, as the Federal Statistical Office announced to the portal.
"The official statisticians only consider amounts paid by employers to their employees in terms of monthly earnings , but without special payments such as vacation pay," explains Spiegel Online. The short-time work allowance - which the Federal Employment Agency (BA) reimburses - is also not included. The statistics agency pointed out that the short-time work allowance "cushioned most of the income losses for the employees". According to the latest projection by the Federal Employment Agency, 6.7 million people were on short-time work in May .
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Will short-time work be extended?
Update from July 27, 2020: The federal government is considering an extension of the simplified short-time working regulation , which was changed in March due to the corona pandemic. "I can imagine that we will extend the expanded options for short-time work *," said Federal Labor Minister Hubertus Heil (SPD) according to the German Press Agency (dpa) (as of July 26). “I have this option by ordinance. We will make a decision on this in September. ”The hurdles for this were lowered in March during the corona crisis.
The SPD politician is also thinking about modifications , reported "Tagesschau.de". "We want to provide incentives for those who are on short-time work for longer to use the time meaningfully with further training ." In the first phase of the economic downturn, this was not possible because further training could not be offered for reasons of infection protection . According to the dpa, more than 6.83 million people were recently on short-time work.
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Corona consequences: additional tax payments due to short-time work?
Update from July 21, 2020: Employees who are on short-time work due to the corona crisis will have to make an extra tax return * next year. This is referred to in an article on “Tagesschau.de” (as of July 20, 2020). According to the report, there may be a risk of back taxes *. Because short-time work benefits are tax-free, just like unemployment benefits or parental benefits. But all of this counts as income and is offset against the tax rate , it says in the report in which Uwe Rauhöft from the Federal Association of Wage Tax Assistance Associations explains the principle of the so-called progression proviso. “A terrible term,” the expert emphasizes, according to “Tagesschau.de”, “but progression means increase, that's what is in there. And the tax rate is simply increasing. "
This higher tax rate will then be applied to normal income - not to the short-time work allowance, which remains tax-free, according to "Tagesschau.de". But there could be more taxes for the other salary .
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That in turn depends on how much wage tax someone has already paid, expert Uwe Rauhöft is also quoted as saying. “Anyone who received only short-time allowance in certain months, that is, worked zero hours and worked full time for the rest of the year, will usually receive a tax refund .” In that case, the person concerned has already paid too much wage tax over the year .
Tax refund or back payment?
But it could also happen that there is a risk of back payment , it continues on “Tagesschau.de” - especially for those who were not fully on short-time work - for example, who worked normally a few days a week and only for the rest of the time Have received short-time work benefits.
Suggestion: suspend progression reservation
For this reason, the FDP has called in the Bundestag to suspend the progression reservation for this year, reports "Tagesschau.de". The governing coalition of the SPD and Union voted against the FDP's proposal at the end of June. You will submit your own proposal if the CDU / CSU parliamentary spokeswoman for financial policy Antje Tillmann has its way, as the news portal writes. She feared that otherwise many people affected by short-time work could be in for a nasty surprise because they did not take into account the fact that they would have to save some of the advantage they have today for the additional tax payment in 2021.
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Short-time work: what happens if the employer goes bankrupt?
Update from July 16, 2020 : In the corona crisis , many employees are on short-time work *. The advantage : the jobs are saved for now. But what happens if the company goes bankrupt and can no longer pay wages? "If the employer falls into bankruptcy during the order of short-time work, the right of the employees affected by short-time work to insolvency money can be excluded in the worst case," it says in an article on labor law on Focus Online. This is related to the nature of the bankruptcy money, which is intended to serve as a substitute for wages.
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The problem is described in the report as follows: With the introduction of short-time working, the employee waived his wage entitlement - some partially and some completely. If the employee is in “short-time work zero”, he will only receive short-time allowance instead of wages. "However, this is not a remuneration that can be reimbursed through insolvency money , so that this employee is ultimately not entitled to insolvency money", writes "focus.de".
The insolvency payment is a benefit that the Federal Employment Agency pays employees of a company affected by bankruptcy instead of wages. It includes the last three net monthly salaries before the opening of insolvency proceedings or rejection of the insolvency application due to lack of assets, says the report on the background.
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Union representatives are calling for short-time working benefits for trainees too
Update from June 24th, 2020 : In the Bundestag, politicians of the Union parliamentary group are calling for further help for companies to secure apprenticeships in the Corona crisis beyond the planned trainee bonuses, as reported by the German Press Agency (dpa). To relieve the burden, companies should be able to receive short-time allowance for their trainees from day one, according to a position paper on such a requirement. There were similar demands from the economy. So far, according to the dpa, companies have to continue paying the full training allowance for six weeks even without work before they can apply for short-time work allowance for their trainees at the Federal Employment Agency.
Report: Officials search offices of C&A - fashion chain rejects allegation
Update from June 15, 2020: Customs officials and the Federal Employment Agency (BA) searched several offices of the fashion group C&A in Düsseldorf and Hanover on Wednesday after the allegation of short-time work fraud against C&A at the end of May, according to a Business Insider report. Authorities told AFP that there had been tests in a well-known German textile trading company to see whether there were any indications for the allegation, as the AFP news agency reported on Friday (June 12). C&A had rejected the allegation as "baseless" at the end of May, as AFP also reported. The "Spiegel" reported at the end of May that the company had sent employees on short-time work, but internally obliged them to work overtime. The magazine therefore relied on an email from employees.
Fashion chain C&A denies allegations
C&A then stated that a "single person" had made allegations against executives in a single department, for which the company could not find any evidence even after extensive research, as AFP also reported. C&A also repeatedly pointed out to employees on short-time work and their superiors that the hours worked during short-time work must be reported in full to the HR department and that no hours may be omitted.
Update from June 3, 2020: The number of short-time workers in the Corona crisis is enormous
The number of short-time workers in the Corona crisis is considerable. The Federal Employment Agency announced new figures on Wednesday. As reported by "Bild", companies reported short-time work for a further 1.06 million people in May . These would be in addition to the advertisements already made for 10.66 million people. However, according to "Bild", experience shows that the number of actual short-time workers is significantly lower, "because companies are sometimes making the advertisements as a precaution," according to the portal.
According to projections by the Federal Agency, 2.02 million people took advantage of short-time working in March alone - "the highest value ever measured," according to "Bild.de". The previous record came from May 2009, when 1.44 million people took advantage of short-time work during the financial crisis.
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Update from June 2nd, 2020: So many people were on short-time work in May
According to calculations by the Munich Ifo Institute, 7.3 million employees were on short-time work in Germany in May , as reported by welt.de (as of June 2).
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Update from May 29, 2020: Employer subsidies for short-time working allowances should remain largely tax-free
The Bundestag has as the German Press Agency (dpa) reported on Thursday decided that grants the employer for partial unemployment benefits are to remain largely tax-free. Millions of citizens are currently on short-time work because of the pandemic . Many companies had announced that they would increase the short-time work allowance of their employees - because low-wage earners in particular would otherwise hardly be able to make ends meet in the long term.
The exemption applies by law for grants "to 80 percent of the difference between the desired and the actual remuneration". Specifically, this means for a single employee with a net income of 2500 euros and 40 percent less working time: The state increases the remaining net income of 1,500 euros at the start of short-time work with 600 euros of short-time work allowance. The employer can then add up to 200 euros tax-free, writes dpa.
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Update from May 14, 2020: Bundestag decides to increase short-time work benefits
In the Corona crisis , employees are to be protected more strongly from wage losses during short-time work. The Bundestag passed a corresponding law by Labor Minister Hubertus Heil (SPD) on Thursday. The grand coalition voted in favor, the opposition abstained. In general, there is already 60 percent of the last net wage or 67 percent for people with children as short-time work benefits . Now it should be increased to 70 percent or 77 percent from the fourth month of reference. From the seventh reference month onwards, it should be 80 percent or 87 percent. This should apply until December 31, 2020 at the latest .
The law, which the Federal Council still has to deal with, provides, among other things, for a longer entitlement to unemployment benefits .
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Update from May 6, 2020: Corona crisis: Partial retirement continues during short-time work
Due to the corona pandemic, many companies are adapting their operating processes to the circumstances. Possible consequences such as short-time work, time off work, unpaid leave or quarantine can also affect partial retirement employees. The German Pension Insurance Association in Berlin points this out. What that means at a glance :
Short-time work and reduced working hours: Part- time work for older workers continues to exist during short-time work if the supplementary benefits - i.e. the supplementary amounts and additional pension insurance contributions - are paid in addition to the current wage.
It does not matter whether people are actually working during short-time work. The employer must pay the supplementary benefits to the same extent as if the employee had worked the working hours agreed without short-time work.
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Time off and unpaid leave : If the remuneration and the additional employer benefits continue to be paid, a temporary leave of absence does not have a negative effect on part-time work for older workers.
Important to note: Employees must remain ready for work and also resume work if the temporary operational reason has ceased to exist. The situation is different during an unpaid vacation: Then there is no more partial retirement because the vacation interrupts you.
Officially ordered quarantine : If quarantine has been ordered for employees, due to the special situation, this is a temporary release. These are valued in the same way as company-related exemptions.
If the company continues to pay the wages, the top-up amounts and additional pension insurance contributions, the partial retirement in the sense of social security law is not considered interrupted .
This also applies in the first six weeks of quarantine if the wages are paid as compensation for loss of earnings in accordance with the Infection Protection Act and are then reimbursed to the employer by the responsible compensation authority.
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Update from April 30, 2020: Companies register short-time work for 10.1 million people
During the Corona crisis, Germany's companies registered short-time work for 10.1 million people by April 26 . The Federal Employment Agency in Nuremberg announced this record .
This means that all the forecasts made by economists have been exceeded by far. The experts' estimates had been between three and seven million people. The previous record of the Federal Employment Agency for this labor market policy instrument dates from May 2009.
At that time, 1.44 million people were on short-time work. In the entire crisis year of 2009, 3.3 million reports for short-time work were received by the Federal Agency.
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Coalition agreed higher short-time work benefits
The tips of the CDU and SPD had adapted to an increase in short-time allowance: In view of the corona crisis it is for childless workers - depending on the reference period - from 60 to up to 80 percent and for employees with children from 67 to up to 87 percent increases as reported by SZ Online.
The heads of the grand coalition have agreed to increase the short-time work allowance in order to alleviate the consequences of the Corona crisis on workers who have been particularly hard hit. As the CDU, CSU and SPD announced on the night of April 23 after deliberations by the coalition committee in Berlin, up to 80 percent of the loss of wages should be compensated for, depending on the duration of the payment , and up to 87 percent for households with children . So far, the short-time work allowance was 60 percent and 67 percent respectively. Now it is to be increased for those who have reduced their working hours by at least 50 percent from the fourth month to 70 percent (77 percent for parents) and from the seventh month to 80 percent (87 percent for parents). That should apply until the end of the year at the latest.
The additional earning opportunities for employees on short-time work from May 1 to December 31 will be extended to the full amount of the previous monthly income.
Labor Minister Hubertus Heil (SPD) now made the following sample calculation: A family with one child, she works full-time, he part-time, receives a net monthly income of 4100 euros. Both are on short-time work. According to the old rule, both would get € 2,700, according to the new rule, € 3,500 in the final stage.
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Higher benefits agreed for the unemployed
Because of the economic consequences of the measures to combat pandemic, more than 700,000 companies in Germany had already applied for short-time work for their employees. The coalition committee specifically agreed that from May 1st until the end of the year, short-time working in all sectors may earn an additional income up to the full amount of the previous monthly income. Unemployed people who would end up receiving unemployment benefits between May 1st and December 31st receive the benefit three months longer.
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Tax relief for restaurants and small and medium-sized companies
Catering establishments as well as small and medium-sized companies are also to be relieved of tax: In the catering trade, the VAT for meals will be reduced from July 1st until June 30th 2021 to the reduced tax rate of seven percent . Small and medium-sized companies are enabled to make the flat-rate reduction in advance tax payments already made for 2019 with regard to losses in 2020.
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Schoolchildren and schools get support for digital lessons
The coalition also decided to support schoolchildren and schools with 500 million euros in digitization . Schools will be given the opportunity to pay pupils in need a grant of 150 euros to purchase the appropriate equipment. In addition, the equipment in schools that is required for the creation of professional online courses is to be promoted.
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Who can apply for short-time work?
The employer applies for short-time work. In the wake of the Corona crisis, the Bundestag introduced a law that regulates easier access to services for a limited period until December 31, 2020. With retroactive effect from March 1, companies can now use short-time work allowance if ten percent of employees are affected by the loss of work. So far, that had to be a third of the employees. In addition, negative working time accounts are not set up.
The employer must report short-time work to the Federal Employment Agency. Before that, the employer must announce the decision to his employees , as the DGB legal protection explains.
For this purpose, a works agreement is usually concluded between the employer and the works council. In companies without a works council, the employer usually has to obtain a declaration of consent from the employees affected by short-time work .
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What does that mean for my salary?
Here is an example calculation: So far, employees without children received 60 percent of their net loss of wages if they worked on short-time work. For example, if you only worked four days a week instead of the usual five days, you would continue to receive 80 percent of your wages from your employer. For the remaining 20 percent, employees receive the proportional compensation payment from the employment agency.
In extreme cases, working hours can be reduced to zero and temporarily completely stopped. Short-time work allowance can be drawn for a maximum of twelve months.
To accurately calculate the short-time allowance , the Federal Employment Agency a table * available. The employer can also increase the short-time allowance voluntarily. However, there is no legal entitlement to such an increase. In individual cases, however, it could be worthwhile to negotiate, as the DGB legal protection explains in an article.
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How can the short-time work allowance be even higher?
In several large companies there were agreements to increase the short-time allowance up to 100 percent . In their own company, employees can, for example , ask the works council whether such a regulation or another is made in their company. The topic can certainly be addressed with the employer - sensible solutions often come about with good communication.
More money through a collective agreement
For employees for whom a collective agreement has been concluded, there is often more to it. Many unions had negotiated increases of 80 to 90 percent and more in these agreements . These sectors include the wood and plastics processing industry in Saxony, wholesale and foreign trade in North Rhine-Westphalia, the automotive trade in Bavaria and the chemical industry.
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How can I apply for short-time allowance?
Companies must indicate the short-time work in writing to the employment agency's employer service at the company's headquarters. The Federal Employment Agency offers a form (PDF) for this. The works council also has the right to report short-time work. The Employment Agency has put together on its website which documents must be submitted by the companies.
What about part-time jobs?
Who one before the start of short-time work outside activity is pursued, it can do more. The earnings have no impact on the amount of short-time work allowance, as the Federal Ministry of Labor and Social Affairs (BMAS) explains in an FAQ.
For employees who take up a part-time job, the resulting remuneration is offset against the short-time work allowance. According to the DGB legal protection, an exception applies until October 31, 2020 in "systemically relevant" areas. Additional earnings, for example in the health sector, are not counted towards the short-time work allowance . This applies provided that employees do not exceed the amount of the wages they received before the short-time work.
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What applies to mini-jobbers or, for example, working students?
However, the employer cannot register short-time work for mini-jobbers. In case of doubt, you remain without remuneration when the company has closed. The same applies to temporary workers if they are registered as marginally employed and do not pay into unemployment insurance. However , if you have a higher income than 450 euros as a working student, for example , you can receive short-time work benefits if the company registers it.
Can the employer force me to cut vacation time first?
The requirements for short-time work allowance are precisely regulated in Book III of the Social Code. The employer can therefore register short-time work if the loss of work is unavoidable and the company has done everything to reduce or eliminate it. " That means that time credits, overtime or the like have to be" celebrated "first, " explains specialist lawyer for labor law Johannes Schipp. It is also possible to order vacation if the vacation days concerned have not already been approved. Vacation that has already been approved cannot easily be canceled by the employer.
According to Schipp, there are no clear rules on the question of the framework in which holidays can be arranged. In his assessment, however, in a pandemic situation it may well be possible for employees to first have to use half or two thirds of their vacation entitlement. Urgent operational reasons then conflict with the employees' holiday wishes.
Can my employer choose who to send on short-time or compulsory leave?
"When selecting employees, the decisive factor will be the areas in which the loss of work occurs," said the specialist lawyer. If then there is still a choice left for the employer, the choice will have to be made at equitable discretion. The employer cannot act arbitrarily .
In companies with works councils, the introduction of short-time working and the regulation of the details are also subject to the codetermination of the works council. So here the employer cannot unilaterally determine things.
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How long is short-time allowance actually paid?
In principle, the following applies: The state pays short-time working benefits to eligible companies for up to one year . There is no maximum limit for short-time work benefits.
What applies to the self-employed?
The self-employed cannot benefit from short-time working benefits because they are not compulsorily insured under unemployment insurance, explains the specialist lawyer.
State guarantees for loans from the KfW development bank
In addition to short-time working, however, there is the option of applying for state guarantees for loans from the KfW development bank . Solo employees and small companies with up to five employees receive a one-off payment of 9,000 euros for three months, companies with up to ten employees 15,000 euros . In addition, each federal state has its own rules on the amount of subsidies and which companies are eligible.
The demand for the aid loans is enormous - and KfW expects the numbers to rise. "Because of the drastic effects of the Corona crisis, many solo self-employed people fear for their existence - for example musicians, photographers, artists, naturopaths, interpreters or caregivers," reported Tagesschau.de. Small business owners, self-employed people and farmers could call up the federal aid funds in the Corona crisis . (ahu / dpa) * Merkur.de is part of the nationwide Ippen editorial network.
Read more here : Corona aid from the state: Who is entitled to what - and from whom?
Sources: Federal Employment Agency, dpa, Tagesschau.de
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