Economic situation: short-time work regulation is to be extended

Simplified access to short-time work has been possible since the beginning of the corona pandemic. Now the ordinance is to be extended because of the energy crisis and the Ukraine war – until the end of June.

The simplified access to short-time work benefits is to be extended until the end of June due to the energy crisis. Federal Minister of Labor Hubertus Heil told the editorial network Germany (RND) that despite the high burdens that the economy had to shoulder at the same time, the situation on the labor market remained stable.

“In these difficult times, we continue to stand by the side of companies and employees,” said the SPD politician. “That’s why we are now extending easier access to short-time work benefits until June 30, 2023.”

Salvation: “Stable Bridge”

According to the RND, the regulation has already passed the departmental vote and is to be decided in the cabinet on Wednesday. The extension is necessary because of the effects of the Russian war of aggression against Ukraine on economic development and the labor market in Germany, the ministry’s draft is quoted as saying.

Heil said: “In the past few months, short-time work has been a stable bridge over a deep economic valley. This bridge continues to hold up.” With the extension, the federal government is giving clear perspectives through the winter, according to the minister. The short-time work allowance is also to be opened up to temporary workers.

The simplified access was decided during the pandemic and extended several times – most recently until the end of 2022. It should now be sufficient to apply for a further six months if at least ten percent of the employees are affected by the loss of work. In addition, employees still do not have to build up any negative hours before they can receive short-time work benefits.