Short-term work FAQs

Supplementary Agreement to employment contract

High level points:

• New legislation in Germany passed on Friday, 13.3.2020
• Aimed at letting companies reduce hours vs. having to fire people
• Under certain prerequisites, the government subsidizes between 60-67% of the employees’ lost wages due to the measure
• Still possible to terminate employee during 'Kurzarbeit'
• Part-time workers (and also interns) can also be subject to the policy
• Working contracts do not change, employees have to sign a supplementary agreement (see link above)
• Reimbursement for lost wages: Of the amount of pay not received, the government will subsidise 60-67%. The amount varies based on the German state, the tax bracket, and other individual factors. Link to calculator.