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Innovation in short-time work benefits: This applies to employees and the self-employed

2020-05-29T16:45:08.577Z


The Bundestag has decided that grants from the employer for short-time work benefits should remain largely tax-free. What is important for employees now.


The Bundestag has decided that grants from the employer for short-time work benefits should remain largely tax-free. What is important for employees now.

  • The Bundestag decided that grants from the employer for short-time work benefits should remain largely tax-free.
  • The number of people on short-time work due to the corona crisis had previously increased massively.
  • We explain what the short-time allowance means and the innovations .

Update from May 29, 2020: Grants from employers for short-time work benefits are to 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 their employees' short-time allowance - because otherwise low-wage earners in particular would barely 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". In concrete terms, this means, for example, for a single worker with a net income of 2,500 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 short-time allowance. The employer can then add up to 200 euros tax-free, writes dpa.

Update from May 14, 2020: Bundestag decides to increase short-time benefits

In the Corona crisis  , workers are to be protected more from reduced wages for 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 and 77 percent from the fourth month of purchase. From the seventh reference month, it should be 80 percent or 87 percent in the future. This should apply until December 31, 2020 at the latest .

The law, which the Federal Council still has to deal with, also provides 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

The corona pandemic is causing many companies to adapt their operations to the circumstances. Possible consequences such as reduced working hours, exemptions from work, unpaid leave or quarantine can also part-time employees relate. This is pointed out by the German Pension Insurance Federation in Berlin. An overview of what that means :

Short-time work and reductions in working hours: Part- time work for older workers also continues during short-time work if, in addition to the current wages, the top-up benefits - i.e. the top-up amounts and additional pension insurance contributions - are paid.

It does not matter whether the short-time working is actually still in progress. The employer must pay the top-up benefits to the extent that the employee has worked the working hours agreed without short-time working.

Read here : Wage replacement payment for parents is extended

Leave and unpaid leave : If the remuneration and the additional employer benefits continue to be paid, a temporary leave does not have a negative impact on part-time work for older workers.

Important to note: Employees must remain on duty and also start again if the temporary operational reason no longer applies. It looks different during an unpaid vacation: Then there is no longer any partial retirement because the vacation interrupts them.

Officially ordered quarantine : If a quarantine has been ordered for employees, the special situation means that temporary exemptions are required. These are evaluated like operational exemptions.

If the company continues to pay the remuneration, the top-up amounts and additional pension insurance contributions, the partial retirement is not considered to be interrupted in the sense of social security law .

This also applies in the first six weeks of the quarantine if the remuneration is paid as loss of earnings compensation according to the Infection Protection Act and 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

By April 26, Germany's companies had registered short-time work for 10.1 million people in the Corona crisis . The Federal Employment Agency in Nuremberg announced this record value .

This far exceeded all forecasts by economists. The experts' estimates had been between three and seven million people. The previous record value 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. Throughout the crisis year 2009, 3.3 million short-time job advertisements were received by the Federal Agency.

Read here : How to calculate short-time work benefits - and this applies when you get sick

Coalition agreed higher short-time allowance

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 be reported, such as SZ Online.

The leaders of the grand coalition have agreed to increase the short-time work allowance in order to mitigate the consequences of the corona crisis on particularly hard-hit workers. According to the CDU, CSU and SPD on the night of April 23 after consultations by the coalition committee in Berlin, up to 80 percent of the loss of wages is to be compensated for, depending on the period of benefits , for households with children up to 87 percent . Previously, short-time work benefits had been 60 percent and 67 percent, respectively. Now it should 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 at the latest until the end of the year.

The additional earnings opportunities for short-time workers will be expanded from May 1 to December 31 to the full amount of the previous monthly income.

Minister of Labor Hubertus Heil (SPD) now opened the following sample calculation: A family with one child, they work full-time, he works part-time, receives EUR 4,100 net monthly. Both go into short-time work. According to the old rule, both would get 2700 euros, according to the new one in the final stage 3,500 euros.

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Higher benefits also agreed for the unemployed

Due to the economic consequences of the measures to combat pandemics, 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 1 to the end of the year short-time workers in all industries could earn an income up to the full amount of the previous monthly income. Unemployed persons who would receive unemployment benefits between May 1st and December 31st receive the benefit for three months longer.

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Tax relief for restaurants and small and medium-sized companies

Gastronomy businesses as well as small and medium-sized companies are also to be tax-free: In the catering industry, the value added tax for food will be reduced from July 1 to June 30, 2021 to the reduced tax rate of seven percent . Small and medium-sized companies are enabled to make the flat-rate reduction for tax prepayments already made in 2019 with regard to losses in 2020.

Read here:  These new aids in the corona crisis exist - and who actually pays for the corona test?

Students and schools get support for digital classes

The coalition also decided to support schoolchildren and schools with 500 million euros in digitization  . The schools will be able to pay needy pupils a subsidy of 150 euros for the purchase of appropriate equipment. In addition, the equipment in schools is to be promoted, which is necessary for the creation of professional online courses.

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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 limited easier access to benefits for a limited period until December 31, 2020. With retroactive effect from March 1, companies can now use short-time work benefits if ten percent of the employees are affected by the loss of work. So far this 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, a company agreement between the employer and the works council is usually concluded. In companies without a works council, the employer usually has to obtain a declaration of consent from the employees affected by short-time work .

Read also : Money from the state: These offers and help are available to employees in short-time work

What does that mean for my salary?

Here is a calculation example: Until now, employees without children received  60 percent of their net loss of earnings if they worked short-time. For example, anyone who would only work four days a week instead of the usual five days would get 80 percent of their wages from the employer. For the remaining 20 percent, employees receive the proportional compensation payment from the employment agency.

In extreme cases, the working time can be reduced to zero and temporarily completely stopped. Short-time work benefits 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 voluntarily increase the short-time work benefit. However, there is no legal claim to such an increase. In individual cases, however, it could be worth negotiating, as the DGB explains legal protection in a contribution.

Read more:  Coronavirus: School / Kindergarten closed - Will the employer release me?

How can the short-time allowance possibly be even higher?

There were agreements in several large companies to increase short-time work benefits by up to 100 percent . In their own company, employees can, for example, inquire at the works council whether such or another regulation is made in their company. The topic can certainly be raised with the employer - good communication often leads to sensible solutions.

More money through a collective agreement

For employees for whom a collective agreement has been concluded, there is often also more in it. Many unions  had negotiated increases of 80 to 90 percent  or more in these agreements . These industries include the wood and plastic processing industry in Saxony, the 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 work benefits?

Companies have to indicate the short-time work in writing at the employment service of the employment agency at the company 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 compiled 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. Earnings have no impact on the amount of short-time work benefits, as the Federal Ministry of Labor and Social Affairs (BMAS) explains in an FAQ.

For employees who take up a new job, the resulting wage is deducted from the short-time allowance. An exception applies according to DGB legal protection until October 31, 2020 in "systemically relevant" areas. Secondary earnings, for example in the health sector, are not counted towards short-time benefits here . This applies if employees do not exceed the amount of wages they received before short-time work.

Find out here Corona pandemic - Can the employer order overtime - and what about vacation?

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, they remain without remuneration if 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 , you can get short-time work allowance if the company registers it.

Can the employer force me to take vacation off first?

The requirements for short-time work benefits are precisely regulated in Social Security Code III. The employer can register short-time work if the loss of work is unavoidable and the company has done everything to reduce or remedy it. " This means that time credits, overtime or the like have to be" celebrated "first, " explains specialist lawyer for labor law Johannes Schipp. In addition, it is possible to arrange vacation, provided that the relevant vacation days have not already been approved. Holidays that have 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 vacations can be arranged. In his opinion, however, in a pandemic situation, it may well be the case that employees first have to use half or two thirds of their vacation entitlement. Urgent operational reasons then conflict with the vacation wishes of the employees.

Can my employer choose whom they send on short-time work or forced leave?

"When selecting employees, it will be crucial in which areas the loss of work occurs," said the specialist lawyer. If there is still a choice for the employer, the selection will have to be made at its reasonable discretion. The employer cannot proceed arbitrarily .

In companies with works councils, the introduction of short-time work and the regulation of details are subject to the co-determination of the works council. So the employer cannot set things unilaterally here.

Also read: Submit your 2018 tax return retrospectively - get a lot of money back

How long is short-time work allowance actually paid?

As a general rule, the state pays short-time work benefits to authorized companies for up to one year . There is no maximum limit for short-time work benefits. 

What applies to the self-employed?

Self-employed persons cannot benefit from short-time work 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 work, however, there is the option of applying for government guarantees for loans from the KfW development bankSolo employees and small businesses  with up to five employees receive a one-time payment of 9,000 euros  for three months, companies with up to ten employees receive 15,000 euros . In addition, each state has its own rules regarding the amount of the grants and which companies are eligible for grants.

The demand for aid loans is enormous - and KfW is expecting increasing numbers. "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 nurses," reported Tagesschau.de. Small business owners, the self-employed and farmers could access the federal government's aid funds in the Corona crisis .

Read more here : Corona help from the state: who is entitled to what - and from whom?

Sources: Federal Employment Agency, dpa

Also interesting : Corona, children, chaos: This is how employers can at least help parents financially

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ahu / dpa

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* merkur.de is part of the nationwide central Ippen editorial network.

List of rubric lists: © picture alliance / Felix Kästle / dpa

Source: merkur

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