Innovations in COVID-19 short-time work from 01.07.2021

Nov 24, 2021 Benn-Ibler Rechtsanwälte

Due to the pandemic, businesses continue to be put to the test. In order to nevertheless preserve the liquidity of the entrepreneur and the workers employed in the business, the legislator provides a remedy through the short-time work (“Kurzarbeit”) model.

In principle, every employee who is subject to unemployment insurance is eligible for short-time work; thus, minimally employed workers are excluded from this working time model. However, the respective employee has to have had one fully paid calendar month before entering short-time work. Freelancers may also enter short-time work, provided they are compulsorily insured under the General Social Insurance Act (Allgemeinen Sozialversicherungsgesetz, ASVG) and it is possible for them to display normal working hours. The respective request must be submitted to the Austrian Public Employment Service (Arbeitsmarktservice, AMS) before the start of short-time work together with the mandatory social partner agreement.

What is new is that the loss of working time during the short-time work period may not be less than 20% and not more than 50% on average and for each individual employee. In cases of special hardship, however, as an exception, the loss of working hours may exceed 50%. Nonetheless, the explicit consent of the respective body capable of concluding collective agreements is necessary for the filing of a hardship claim. A company is considered a special case of hardship if it is affected by an imposed entry ban. Approval is only given retrospectively and only in the course of the final settlement. However, any shortfall below the 20% minimum may not be approved.

The approach that entrepreneurs should take to reduce leave time of their employees has also been tightened. Employees are obliged to use up at least one week of holiday time from the second month of short-time work. The longer the short-time work lasts, the greater the reduction, and can be up to three weeks.

In addition, the amount of aid is now related to whether the applicant is a particularly affected enterprise. If the entrepreneur does not have a decrease in turnover of at least 50% in the third quarter of 2020 compared to the third quarter of 2019, only 85% of the aid will be paid out.

BMA, COVID-19-Kurzarbeit - Häufig gestellte Fragen (1.7.2021)