Short-time work: apply for insolvency benefits and calculate short-time work benefits – this is how it works
Who is entitled?
If there is a significant and unavoidable loss of work in your company, as may be the case, for example, due to the corona pandemic, you as an employee are entitled to short-time working allowance (Kug). Your company needs a written notification from the employment agency, stating that the requirements for the granting of insolvency money according to §§ 96 Paragraph 1, 97 SGB III are met. One of these prerequisites is, for example, that at least ten percent of the employees in your company suffer a loss of wages of more than ten percent.
You are also entitled if you continue an employment subject to unemployment insurance after reporting the loss of work, or if you are forced to take up such employment after completing your vocational training. If you were previously employed in a fixed-term employment relationship that is to be continued, the entitlement also applies. It also applies if your employment relationship has not been terminated or is terminated by a termination agreement.
You will also receive the insolvency money if you no longer have any income due to the loss of work. The possibility of short-time working must be noted in your employment contract and, if necessary, agreed with the internal works council. Any social security contributions incurred will be reimbursed at a flat rate. Companies in which working time fluctuations have been agreed must refrain from building up negative balances on working time accounts. If you are employed as a temporary worker, you can also take short-time work and are entitled to short-time work allowance. Short-time working does not have to be introduced for the entire company; it can also be limited to a specific company department.