Will Short-Time Work Return After Post-Pandemic Normalization?

The global coronavirus pandemic continues to affect economies and workers worldwide. As countries move toward normalization, questions arise about workers who previously received short-time working allowance and whether they can return to that scheme after resuming normal work.

How Long Can You Receive Short-Time Working Allowance?

Workers included within the short-time working allowance scheme who have already transitioned back to normal working conditions are generally not eligible to receive the allowance again. During the pandemic, the short-time working allowance was ordinarily limited to three months, but the eligibility period was extended to October 31, 2020. The President has the authority to extend this period until the end of the year, and if the pandemic situation does not improve, it is likely that the deadline will be extended through year-end.

Can Part-Time Workers Receive Severance Pay?

Employers who applied for the extension period by June 30, 2020 were eligible to benefit from further short-time working support. For the workers covered by those applications, the right to extend their period of support remains in effect. Some employees in a workplace may be transitioned back to full-time work during the normalization phase while others continue on short-time working. If necessary after returning to normal work, the same employees may, under certain conditions, be eligible again for short-time working allowance.

Short-Time Working Allowance Under Relevant Legislation

To determine whether workers can be re-enrolled in the short-time working allowance after the normalization period, one must review the legal basis. The relevant guidance is found in Social Security Institution’s General Communiqué No. 35, issued on August 27, 2020, which outlines employer premium support provided for those who returned to normal work after receiving short-time working allowance. The communiqué provides the following example:

Is the Employer Responsible if a Worker Contracts Coronavirus?

For a worker whose short-time work period began on April 20, 2020 and ended on July 20, 2020, with an average of 22 working days per month, it is possible to benefit from the three-month support for August, September and October 2020. If the worker benefits from support for August and September 2020 and then, as of October 1, 2020, is determined to be eligible for short-time working allowance again (in other words, the worker returns to short-time work), the support for October 2020 is suspended. If short-time working allowance ends on October 30, 2020 and the employer requests support again for November 2020, the remaining one-month support can be granted. In other words, support provided during the specified periods and subsequent temporary return to normal work is limited to those periods; after those periods end, requalification for the allowance is not automatically granted.

Unpaid Leave Is Different

Short-time working allowance and unpaid leave are distinct measures, so workers and employers must treat them differently. While short-time working support can be extended at most until December 31, 2020, the ban on dismissals and the unpaid leave arrangement may be extended until June 30, 2021. Consequently, as long as the short-time working allowance remains in effect, employees may receive that support. After that support ends, employers may place workers on unpaid leave, allowing them to benefit from cash wage support measures linked to unpaid leave.

Precedent Ruling on Short-Time Working Allowance