Breaking News: Short-Time Work Allowance Extended. The extension of the short-time work allowance has been approved by Parliament. A new announcement has been issued regarding the short-time work allowance provided during the coronavirus pandemic. Due to the novel coronavirus, the President’s request to extend short-time work was reviewed and approved on the parliamentary agenda. President Recep Tayyip Erdoğan announced after a recent cabinet meeting that the short-time work allowance would be extended.
The Ministry of Family, Labour and Social Services has extended the duration of the short-time work allowance it administers. The recently decided extension can be applied sector by sector or as a whole. Accordingly, for those in the private sector benefiting from short-time work allowance or cash wage support because of coronavirus-related force majeure, if they return to their regular weekly working hours, both the employee and employer insurance contributions will be covered from the Unemployment Insurance Fund for three months, up to 31 December 2020.
How Long Was the Short-Time Work Allowance Extended?
The President’s authority to extend the short-time work allowance has been broadened, allowing an extension through 31 December 2020 due to the novel coronavirus outbreak. Under this authority, the President may extend the allowance period by sector or across the board, provided the end date does not exceed 31 December 2020. The proposal submitted to Parliament includes measures intended to encourage employers and employees to resume normal weekly working hours as the economy begins to normalize.
If private-sector workplaces that have been receiving the short-time work allowance or cash wage support return to normal weekly working hours, the full social security contributions for employees and employers will be paid from the Unemployment Insurance Fund for up to three months, provided this does not exceed 31 December 2020. The monthly support provided to an employer cannot exceed the average number of days per month that beneficiaries received the short-time work allowance, and for those receiving cash wage support, it cannot exceed the monthly average number of days they received that support.
If it is determined that the short-time work allowance was claimed improperly, or if a suitability assessment for the short-time work application has a negative result, the following procedure will apply: the workplace will lose eligibility for the support defined under the regulation or will be deemed to have received the support unjustly. In cases where unjust enrichment is identified, the amount received will be recovered from the employer together with late-payment penalties and interest.