Corona Labour Law ‑ More Short-Time Work

The coronavirus - since it has existed - was never gone and is now back. The coronavirus is not a friend and it is not welcome. Nevertheless, we still have to deal with the coronavirus and its consequences. In everyday life, in medicine, but also in labour law, in "corona labour law".

Dear Readers,

At the beginning of 2020, when the coronavirus and its consequences hit the German labour market, regulations were quickly put in place and temporary measures were introduced to overcome the crisis. In particular, special regulations were introduced to facilitate the implementation of short-time work. As the coronavirus continues to have a massive impact on working life, the German government responded with new regulations and extended the period during which short-time allowance can be received. The following applies:

  • The short-time allowance will be extended from the current 12 months to a maximum of 24 months in total.
  • The corona-related increase in short-time allowance of 70 percent and 77 percent as of the fourth reference month and 80 percent and 87 percent as of the seventh reference month is extended until 31 December 2021 for all employees who became entitled to short-time allowance until 31 March 2021.
  • The facilitated access to short-time allowance will remain in place until the end of 2021 if short-time work has been taken up in the applying company by 31 March 2021.
  • Employers will continue to receive full reimbursement of the social security contributions incurred during short-time work until mid 2021, thereafter at 50 percent until 31 December 2021, if short-time work was taken up by 30 June 2021.
  • Remuneration from low-paid employment that was taken up during short-time work will continue to be exempt from being offset until 31 December 2021.
  • Temporary workers also have the option of applying for short-time allowance until 31 December 2021 if short-time work in the temporary employment agency was taken up by 31 March 2021.

The new or rather extended regulations are part of the law on job security in the wake of the Covid-19 pandemic. It is expected to come into force on 1 January 2021.

Stay healthy and warm (labour law) greetings from Munich

Yours, Dr Erik Schmid


Dr. Erik Schmid, Partner

Dr Erik Schmid

Rechtsanwalt, Licensed Specialist for Labour Law



Arbeitsrecht Corona Kurzarbeit

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Dr Erik Schmid T   +49 89 35065-1127 E