19 March 2020

Coronavirus SARS-COV-2 FAQ short-time work

In response to the corona pandemic, the German government intends to counteract the threat of an economic crisis with an emergency package. 

As in the 2008 financial crisis, these considerations focus on easing the introduction of short-time working. On 13 March 2020, the Bundestag passed the "Work for Tomorrow Act", in which the new regulations on short-time work compensation ("KUG") are included. The new provisions are due to come into force as of 1 April 2020, making it easier for companies to access the KUG with the following measures:

  • Short-time work allowance will in future already be granted if one tenth of the workforce is affected by loss of working hours.
  • Companies will be exempt from the social security contributions applicable to the short-time allowance.
  • Temporary employment agencies will also have access to the short-time allowance.
  • Planned hours on working time accounts no longer have to be reduced as a matter of priority.

We have summarised for you the most important questions from the management's point of view on shorttime work and the concrete changes resulting from the corona virus SARS-CoV-2. As always, every situation is different and responses depend on the specifics of each individual case. The FAQ therefore does not replace an analysis of the legal situation in your company and does not constitute legal advice.

Please refer to the document for further information: FAQ short-time work – 23 March 2020


We have compiled on our website comprehensive information and recommendations for action in response to the legal implications arising from the coronavirus pandemic: Coronavirus - legal issues

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