Germany: Government extends payment of short-time benefit

The German government announced in November 2008 an extension of the period during which employees who have had their working hours cut because of their employer’s economic difficulties may receive state short-time work benefit.

Under German law, where companies reduce the working hours of at least one-third of their employees, resulting in a loss of earnings of more than 10%, the employees may claim short-time work benefit (Kurzarbeitergeld) from the Federal Labour Agency (Agentur für Arbeit).