Easier access to short-time working allowance expires at the end of June

The special regulations for receiving short-time work benefits expire on June 30, 2023.

Easier access to short-time working benefits was introduced due to the consequences of coronavirus and then extended several times due to disrupted supply chains and the effects of rising energy prices. Overall, however, take-up has fallen sharply again compared to the last three years. Expenditure on short-time working allowance is also falling. According to data from the Federal Employment Agency, the vast majority of companies are no longer in a deep crisis as they were during the coronavirus pandemic.

From July 1, 2023, the conditions that applied before the pandemic will therefore apply again for receiving short-time working benefits. At least one third of employees in a company must be affected by a loss of working hours again. By the end of June, this will be 10 % with a loss of working hours of more than 10 %. Temporary workers can then also no longer be supported via short-time working.

In addition, from July 2023, companies must first build up negative working time balances again before the short-time working allowance can be paid. To do this, there must be a regulation in place in the company that allows minus hours to be built up in a working time account. This means that from July 2023, companies will have to build up negative hours again both in the event of initial and ongoing absences from work. Only when this has been exhausted can the short-time working allowance be paid for any further absences from work.