KURZARBEIT – for English speaking clients

The Government has specified and (as they say simplified) the Kurzarbeit. All remains basically the same as we posted before. In original situation E the compensation raised up to 60% instead of 50%.
The important thing now seems to be to specify the reason per every single employee.

1. The employer must be specific in reasons for staying at home regarding every single employee – the reason must be related to COVID-19
2. Employer’s must meet following criteria’s
a. It is complying with the Labour Code
b. The employee must not be in cancellation period
c. The employees must have (via labour relationship) social security
d. The salaries and related contributions (social and health insurance) must be paid out
3. The state funding will be provided by Labour Offices. It will only deal with the period affected by COVID 19
4. The compensation depends on supergross salary however limited to 48.400 and is calculated according to the reasons used in two regimes (in fact they only grouped the original 5 situations into two groups)

a. Regime A
i. Quarantine = employee gets 60% (paid by state)
ii. Business closed due to state order = employee gets 100%
1. Compensation – 80% of total paid out – maximum 39.000

b. Regime B
i. Obstacles on employer ´s side due to ordered quarantine or family member care in case of >30% employees = employee gets 100%
ii. Supplies limited = employee gets 80%
iii. Demands/sales limited = employee gets 60%
1. Compensation – 60% of total paid out – maximum 29.000
5. Application available commencing April 6th
6. How to apply will by announced during this week.
7. The application should be made after the related month is closed.