international employment law firm alliance L&E Global

2. State Aid

Government subsidies and special relief resources allocated to support employers, and workers, in their efforts to maintain employment and pull through the crisis.

Employers can apply for short-time work allowance for their employees as a compensation in case of temporary loss of work. The amount of the short-time working allowance is in principle, 67% of the employee’s salary, with extended entitlements in 2020 for lengthy periods of short-time work. This financial aid shall secure continued employment in times of work loss, in order to avoid terminations for operational reasons. Employees may also have compensation claims under the German Protection against Infection Act, e.g. in cases of a quarantine ordered by the authorities that prevent the employee from working. Solo self-employed, freelancers and small companies are entitled to emergency financial aid of up to €9,000 or €15,000 (depending on the number of employees), paid by the respective federal state.

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