Answer to Question #311895 in Management for NDhar

Question

What is the impact of pandemic on labour laws in Germany w.r.t.?

a. Working hours and leaves

b. Protection measures and compensation 

Answer 1

Labor laws in Germany proposes an increase in short-time work compensation. For those employees who are on short-time work for at least 50 percent, the amount will rise to 70 percent from the fourth month of short-time. Employees with children will also receive an additional seven percent. From the seventh month of short-time work, the short-time work allowance will increase to 80 percent (or 87 percent for households with children). The law also extends the additional income opportunities for short-time workers, and from 1 May 2020, such individuals will be allowed to earn up to the full amount of their previous monthly income. Finally, the restriction to system-relevant occupations will be lifted. These regulations apply until the end of the year.

Changes have also been made to the parental allowance in order to prevent disadvantages arising in relation to COVID-19. Whilst parents in system-relevant professions are urgently needed at their workplace and are having to work more than planned, other employees are on leave of absence or short-time work and may fear that their reduced income will affect the receipt of parental allowance. Three main areas of regulation are therefore affected:

• Parents in system-relevant occupations can postpone their parental allowance months, and have the possibility to take them even after their child has reached the age of 14 months. Any postponed months must be taken no later than 30 June 2021.
• The additional benefit for mothers and fathers who both work part-time (partnership bonus) does not have to be repaid, or will not apply if parents work more or less than originally planned due to the COVID-19 pandemic.
• Months in which a lower income was earned due to the COVID-19 pandemic should be excluded from the calculation of parental allowance. In addition, income replacement benefits such as short-time work compensation will not reduce the amount of parental allowance. These changes apply to the period from 1 March to 31 December 2020