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Christine Wahlig
Attorney at law
Editorial Management

Alice Tanke
Marketing Manager


Bundestag decides to increase short-time compensation


On May 14th2020, the Parliament adopted the German Government’s Act on social measures to combat the corona pandemic (Social Protection Package II).

We had already reported in our blog on the decision of the German Government of April 23th2020, on which this act is based.

The so-called Social Protection Package II includes, among other measures, an increase in the short-time allowance, limited until December 31st2020, to 70 percent (77 percent for employees with children living in the household) of the loss of wages from the fourth month of payment and to 80 percent (87 percent for employees with children living in the household) of the loss of wages from the seventh month of payment for those who receive short-time allowance for working hours reduced by at least 50 percent. 

In addition, the period for which unemployment benefits are paid will be extended by three months for the unemployed whose entitlement would end between May 1st2020 and December 31st2020. 

In addition, with the Social Protection Package II, the Parliament adopted parts of the draft of the Federal Ministry of Labour to change the Labour Court Act and other laws to ensure the functionality of the labour courts during the COVID 19 epidemic, which we had also reported on in our blog. The Parliament adopted the possibility of virtual hearings – limited until December 31st2020, but rejected the complete exclusion of the public from the hearings. The extension of the deadline for filing an action against unfair dismissal from three to five weeks is also no longer included in the adopted Act.

By Verena Braeckeler-Kogel, MAES (Basel) and Maren Sievert

Verena Braeckeler-Kogel
Verena Braeckeler-Kogel, MAES (Basel)

Verena Braeckeler-Kogel specializes in international employment law, restructurings, company closures and relocations as well as in business transfers with particular expertise in finance, banking and insurance industries.

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