As part of coronavirus measures, short-time work benefits have been provided to employers and employees for an extended period. However, as the pandemic continues and this period is prolonged, various issues may arise regarding short-time work. Addressing common questions about short-time work can therefore be useful.
Full-Time Work Is Not Permitted
One of the most frequent questions about the short-time work allowance is whether an employee receiving the allowance can be required to work full time. Employees covered by the allowance cannot be employed full time at their workplaces. The weekly working hours must be reduced by at least one third — for example, working 20 days and not working 10 days — for eligibility to the short-time work allowance. If the employer both benefits from the allowance and forces the employee to work full time instead of applying the reduced schedule, the employer must pay wages and social security contributions for the days actually worked.
Failure to pay wages and contributions for days worked gives the employee the right to justifiably terminate the employment contract. In such a case the employee should first request payment for the days worked; if the employer refuses, a formal warning by notary should be sent and then mediation should be sought. If the employee is dismissed, severance pay must also be paid. If the employee’s claim is upheld, the employer may also lose access to premium incentives for one year due to employing a worker without proper insurance.
What Can an Employee Do Who Works Full Shifts During Short-Time Work?
Can Unpaid Leave Be Taken After the Short-Time Work Allowance?
Previously, 120 days of continuous prior employment were required to benefit from unemployment insurance and the short-time work allowance. Following a legal amendment made in January of last year, it became sufficient to have an employment contract within the last 120 days, so employees whose contracts are temporarily suspended can also qualify. Workplaces that applied for the pandemic short-time work allowance by June 30, 2020, remain eligible. Workplaces that return to normal operations after receiving the allowance may later re-enter short-time work. There is no barrier to returning to short-time work, and under extended regulations this practice continued until October 31, 2020; further extensions up to December 31 were also anticipated.
Under the cash wage support program for those who cannot benefit from the short-time work allowance and for employees placed on unpaid leave during the dismissal ban period, payments are made without a separate application in many cases. After the short-time work allowance period ends, if the employer notifies the Social Security Institution of pandemic-related unpaid leave, employees may be eligible for cash wage support.
Can an Employee Be Made to Work Full Shifts While Receiving the Short-Time Work Allowance?
Is Family Allowance (AGI) Paid During Short-Time Work?
The relevant circular indicates that employees under short-time work can benefit from the family allowance (AGI) in certain cases. It is possible to claim AGI for a spouse who does not work and has no other income. A spouse who earns a salary is not considered under the category “non-working or no-income spouse.” Those without salary income are evaluated as non-working or no-income spouses for AGI purposes.
An employee whose spouse is on unpaid leave for childbirth for six months is considered a non-working spouse during the paid leave period, and therefore AGI may be claimed. If children under 18 are declared, they can also be considered for AGI during short-time work.
Effect of Short-Time Work Allowance on Severance Pay
Periods covered by the short-time work allowance are regarded as time worked for annual leave and severance pay calculations. Therefore, even if social security contributions were not fully paid during short-time work, those days are counted toward severance pay and should not lead to underpayment of severance entitlements.
Missing Day Codes in Short-Time Work Allowance