The COVID-19 crisis led to drastic changes in employment. Although measures have been taken by the German legislator and the government to secure jobs, staff cuts appear inevitable for many companies as the crisis progresses. The following blogpost explains how short-time work and layoffs relate to each other and what companies must do to effectively terminate employment.
The German government has agreed on additional benefit packages worth billions. Companies that recently implemented short-time work and their employees are to profit from this.
In the wake of COVID-19, many companies in Germany implemented short-time work (Kurzarbeit) in order to safeguard jobs and save on personnel. In our previous blog, we outlined the application process and provided an overview of the updated short-time work regulations introduced by the German government in the light of the coronavirus crisis.
Now that short-time work has been implemented, employers are facing questions arising from the handling of short-time work in practice in the day-to-day. We answer the most frequently asked by employers below.
- Secondary employment – Are employees allowed to have a secondary employment during short-time work? If so, how does this affect the short-time work allowance?
For working parents who are unable to fulfil their working duties due to the closure of kindergarten, day care centre and/or school as a result of the pandemic, the German parliament has passed a new law in a fast-track procedure. The essential aspect under this legislative change is that under certain conditions, affected parents are granted a state-funded compensation claim under the German Infection Protection Act (Infektionsschutzgesetz – IfSchG), which is legally distinct from the contractual remuneration claim. READ MORE
The consequences of the spread of the novel coronavirus (Sars-CoV-2) have reached the German labour market. Many companies are daily confronted with new and complex legal questions regarding the handling of coronavirus-related issues in employment relationships.
The following overview shows the most frequently asked questions and answers. READ MORE