GermanyEmploymentWhatfinancial supportis the governmentproviding tobusinesses and toindividuals onemploymentissues?Insolvency•Employers may choose to temporarily reduce the working time of their employees ifthe company is affected by the corona crisis (e.g. if a company is closed down or ifthere are difficulties in the company due to missing orders or supplies). Theremuneration of the employees will be reduced correspondingly. This measure shallavoid layoffs and enable companies to keep qualified workers during the crisis.•Affected employees can receive so-called "short-time working allowance". This benefitmust be applied for by the employer. If granted, the government will generally refund60% (employees without children) or 67% (employees with children) of the differencebetween the regular net income and the reduced net income. The Germangovernment has introduced legislation to increase the short-time working allowance to70% or 77% starting from the fourth month and to 80% or 87% starting from theseventh month. Due to new legislation, it is sufficient if at least 10% of the workforceare affected by short-time work.•FAQ short time work by corona.•The German government has passed legislation to facilitate access to the short-timeworking allowance. Also, the additional income opportunities during short-time workhave been extended.•Coronavirus: FAQ Employment Law Part 3.•In case the government orders a (regional) quarantine, the employer pays the regularsalary and the regional government will refund the money. After six weeks, theemployees will receive sick pay by the government.•Coronavirus: FAQ Employment Law.•Has thegovernment madeany changesto insolvency•legislation?54The statutory obligation to file for insolvency within three weeks, after a state ofinsolvency has been reached, has been suspended for certain companies until30 April 2021. The legislature’s goal is to ensure that disadvantages are avoidedfor creditors who generously granted deferrals during the Covid-19 pandemic.The temporary suspension shall assist companies that have applied forfinancial aid but have not received it yet. An application for financial aid musthave been filed between 1 November 2020 to 28 February 2021. In certaincases, the suspension also applies to companies if the application for financialaid has not been possible in the aforementioned period for legal or factualreasons. In addition, the application must have some prospect for success andthe financial aid must be suitable for eliminating insolvency. Also, insolvencyproceedings may not have been initiated up to 31 January 2021.•Payments made by the debtor under the above conditions shall be deemed notto be detrimental to creditors.•Suspension of the obligation to file for insolvency until the end of April 2021 ifgovernment aid is requested until the end of February 2021; protection againstcontestation in the event of deferrals.Government measures in key jurisdictions
It seems that your browser's pop-up blocker has prevented us from opening a new window/tab. Please click the button below to open the link manually.
