How does the Corona short-time model work for employers? Status of Information: April 3, 2020 (changes in legislation possible) No liability is assumed for completeness and correctness
What is the Corona short-time-work?
Due to the Corona Crisis, the Austrian COVID-19 Laws provide for extended provisions for short-time work and granting of short time work financial aid (“Kurzarbeitsbeihilfe”) for employers. In case of economic difficulties caused by the Corona Crisis, short-time work may be applied for at the Public Employment Service (Arbeitsmarktservice – AMS) under less strict conditions. Short-time work is available to companies regardless of their size and independent of the respective industry. It works for white-collar and blue-collar workers. The new short-time work model applies as of March 1, 2020 and may also be applied for March 1, 2020 retroactively.
What is the aim of short-time working?
The aim of Corona short-time work is to safeguard jobs, preserve operational know how, maintain the liquidity of the company and maintain the workforce of valued employees in times of the Corona Crisis in Austria through the monetary compensation of lost working Hours.
How does Corona short-time model work?
Short-time work can be applied for at the AMS for 3 months, whereas an extension for a further 3 months therefore up to 6 months is possible. With Corona short-time, the normal working time may be reduced on average between 10 % and 90 %. A reduction to 0 working hours (no work performance at all) is temporarily possible, if the average is reached.
Remuneration for short-time work received by the employees amounts up to 80 to 90 % of the employee’s net remuneration including social security contributions prior to the short-time work and is paid by the employer in Advance.
The AMS compensates the employer subsequently (!) for the additional costs that arise in comparison with the reduced actual working time, i.e. the costs for the cancelled working hours. The employer bears the costs for the employee´s work actually performed.
The financial aid is capped at the maximum monthly contribution basis according to the general Social Security Act (ASVG), i.e. in 2020: EUR 5,370,00.
Cornerstones of Corona short-time
- Duration of short-time work: Maximum 3 months (may be prolonged for additional three months therefore up to 6 months maximum).
- Reduction of normal working time: Between 10% and 90% of the previous normal working time (on average). In single weeks a reduction to 0% possible.
- Amount of employees in short time work: The employer can also specify if he does not include certain employee groups (part-time employees, employees who have been dismissed, fixed-term employees) in the short-time work.
- Short time work for the whole company/ operation section: Short time work can be introduced to the whole company or only a operation section-
- Retention period (!): Employees must not be terminated during short-time work and during a period of one month thereafter. The employer is obliged to maintain the numbers of employees in the company during short-time work and up to one month afterwards. Under special circumstances, negotiations can be carried out about not complying with the stipulated retention period.
The relevant documents are to be found on the AMS Website (in German) here.
If you have any questions or need assistance with the application process, our team is happy to assist you. Please contact us at any time by sending an email to Anna Mertinz