German State Aid – June Changes to Kurzarbeitergeld

On 22 June 2022 the German Federal Cabinet has – once again – extended the special rules and regulations for short-time work benefits („Kurzarbeit“) by three further months until 30 September 2022.

While the pure Corona related simplified regulations regarding short-time work benefits will expire on 30 June 2022 – as planned – short-time work benefits will continue to be available for companies if 10 percent of the staff of a company are affected by loss of work. The extended period under simplified access to Kurzarbeit must now be used by German companies to evaluate their business plans. It is key now to start preparing restructuring plans, including staff reductions to avoid being forced into tight insolvency rules once these simplified state aid rules will come to an end.

Our partners Michael Magotsch and Oliver Otto have described in the article below (mondaq.com) why employers need to be aware now.

Read the article here

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