Germany: Short-time work benefit extended to head off unemployment rise

In an attempt to forestall a further increase in unemployment, the German Government, in agreement with trade unions and employers, decided in May 2009 to extend the duration of state short-time working benefit from 18 to 24 months.

Under the statutory short-time working scheme (Kurzarbeit), if companies reduce the working hours of their employees, resulting in a loss of earnings of more than 10%, employees may claim short-time work benefit (Kurzarbeitergeld) from the Federal Labour Agency (Agentur für Arbeit).