Germany: Lower House of Parliament decides to Increase Short-time Compensation

On 14 May 2020, the Parliament adopted the German Government’s Act on social measures to combat the corona pandemic (Social Protection Package II).

The so-called Social Protection Package II includes, among other measures, an increase in the short-time allowance, limited until 31 December 2020, to 70 percent (77 percent for employees with children living in the household) of the loss of wages from the fourth month of payment and to 80 percent (87 percent for employees with children living in the household) of the loss of wages from the seventh month of payment for those who receive short-time allowance for working hours reduced by at least 50 percent.

In addition, the period for which unemployment benefits are paid will be extended by three months for the unemployed. whose entitlement would end between 1 May 2020 and 31 December 2020.

Furthermore, with the Social Protection Package II, the Parliament adopted parts of the draft of the Federal Ministry of Labour to change the Labour Court Act and other laws to ensure the functionality of the labour courts during the COVID-19 epidemic. The Parliament adopted the possibility of virtual hearings – limited until 31 December 2020, but rejected the complete exclusion of the public from the hearings. The extension of the deadline for filing an action against unfair dismissal from three to five weeks is also no longer included in the adopted Act.

Pusch Wahlig Workplace Law attorneys are available to assist you with these and other workplace issues. For more information, visit https://pwwl.de/

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.