The bill to extend the special provisions on the short-time allowance and other benefits in connection with the Covid-19 pandemic was passed by the Bundestag on 18 February 2022.
Extension of the entitlement period for the short-time allowance
On the basis of the wording assistance adopted by the Federal Cabinet for the governing parliamentary groups on 9 February 2022, the entitlement period for the short-time allowance, which was soon to expire, was to be extended to a maximum of 28 months ending no later than 30 June 2022. Many companies had introduced short-time work at the beginning of the Covid-19 pandemic and were due to reach the end of the 24-month maximum entitlement period for the short-time allowance in February 2022. The extension to the entitlement period was therefore to come into force with retroactive effect from 1 March 2022. The Bundestag passed the governing parties’ draft bill to extend the entitlement period for the short-time allowance on 18 February 2022.
Continuation of other pandemic-related special provisions
The Bundestag also voted to retain certain other pandemic-related special provisions until 30 June 2022. These include the provisions on:
- income from mini-jobs not being offset against the short-time allowance;
- increased benefit rates for longer periods of short-time work;
- easier access to short-time work.
- The number of personnel affected by the reduction in work remains at the lower threshold of a minimum of 10% instead of the earlier minimum of one-third and
- as before, no negative balances are being accrued on working time accounts.
After 31 March 2022, employers will continue to be reimbursed one-half of the relevant social security contributions if the short-time work is combined with training measures.
The continuation of the special provisions on the short-time allowance is intended to ensure that employment relationships can also be stabilised in the second quarter of 2022 and that insolvencies and unemployment can be avoided.
Gleiss Lutz comments
As seen from the course of the Covid-19 pandemic to date, its end cannot be predicted with certainty. Nor can a further extension or adjustment of the provisions be ruled out.
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