SHORT-TERM WORKING
| GERMANY |
| KURZARBEIT SHORT-TERM WORKING |
A temporary reduction of normal working hours in an establishment, or complete cessation of work for a specified (usually very brief) period, which is necessitated by a lack of orders. Short-time working (also referred to as "Feierschichten") accompanied by a corresponding reduction in pay may not be imposed unilaterally by the employer. It may be introduced in the establishment only if it has been allowed for under a collective agreement or works agreement or with the assent of the employees affected. Even then, the co-determination right of the works council must be observed. In order to preserve jobs and enable the establishment to keep its trained workforce together, such employees are paid a short-time allowance from Federal Employment Service funds. This allowance amounts in principle to 63 per cent. or 68 per cent. (for employees with at least one child) of the net remuneration which they would have earned under normal circumstances in the hours not worked (Employment Protection Act && 63 ff.).
Owing to the special conditions prevailing in eastern Germany, for this region the maximum duration for payment of the short-time allowance has been extended for a stipulated period of 18 months. In addition, some collective agreements provide that, during short-time working, employers will make up pay to 92 per cent. of the original net remuneration. Some of the short-time workers in eastern Germany are employed in so-called job creation companies .
Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.