Short-time work: How to apply for the insolvency benefit and how to calculate the short-time work benefit

Who is eligible?

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 work benefits (Kug). Your company needs a written decision from the employment agency stating that the requirements for the granting of insolvency money according to §§ 96 Para. 1, 97 SGB III are met. One of these requirements 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 to work subject to unemployment insurance after you have been notified of the loss of work or if you are forced to start such a job after completing your vocational training. If you were previously employed in a temporary employment relationship that is to be continued, the entitlement also applies. It also applies if your employment relationship has not been terminated or terminated by a termination agreement.

You will also receive the insolvency benefit if you no longer have any income due to the loss of work. The possibility of short-time work must be noted in your employment contract and, if necessary, agreed with the internal works council. Any social security contributions incurred will be reimbursed as a lump sum. Companies in which working time fluctuations are agreed must refrain from building up negative balances on working time accounts. If you are employed as a temporary worker, you can also go on short-time work and are entitled to short-time work benefits. Short-time work does not have to be introduced for the entire company, it can also be limited to a specific department.

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