Factsheet for measure
AT-2020-12/2457
–
Updated
– measures in Austria
Short-time working support
Kurzarbeitsbeihilfe
Background information
The measure covers all companies facing unpredictable and temporary economic difficulties due to external factors leading to a drop in production/supplies or sales/demand. The company must not be affected by economic difficulties due to seasonal variations. Difficulties must be temporary.
Before introducing short-time working support, other options need to be used. A social partner agreement must be established for each company. Additionally, the company has to seek advice from the Public Employment Service.
COVID-19 response
To cushion the labour market impact of COVID-19, the short-time working support has been adapted. Employers applying for the support have to show that their economic difficulties are caused by COVID-19.
The employer is obliged to maintain the employment level of the starting point of the short-time working period. Dismissals for economic reasons are possible on approval of the Public Employment Service, trade union and works council. Dismissals for personal reasons require the recruitment of another worker to maintain the total employment numbers.
Content of measure
Working hours under the short-time working arrangements were made more flexible during the recession, in that they could range from at least 10% to a maximum of 90% of normal working hours. In 2018, short-time working subsidies were limited to six months. If the overall situation of the company has not changed, the eligibility time can be extended for another six months. Overall the maximum is set to 24 months.
COVID-19 response
Between March 2020 and March 2021, a special
COVID-19 short-time work scheme
is operational. The reduced working hours must on average be between 10% and 90% of the collectively agreed standard working hours between March and September 2020, but can also temporarily be zero. From October 2020 to March 2021, the working time has to be between 30-80%.
The subsidy can be granted for 3 months, with a possible extension of another 3 months upon consultation of social partners.
Transition from the Covid-19 Model to a regular short-time working support model
In the current economic situation, only very specific individual cases of temporary and non-seasonal economic difficulties are granted short-time working support, if there are no other possible solutions. The duration of the granting of aid is limited to a maximum of six months and ends no later than 31 December 2022. The amount of aid is calculated from the rules applicable to Covid-19 short-time working support and a deduction of 15% is made. This means that 85% will be paid out.
Updates
The following updates to this measure have been made after it came into effect.
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03 October 2024
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On 01 October 2023, the switch was made to a short-time working model in which the AMS short-time working allowance for the lost working hours is based on the pro rata unemployment benefit, as was the case before coronavirus.
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03 October 2024
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Due to current events, the flood disaster of September 2024, the following regulations apply in connection with natural disasters:
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The regional office of the Public Employment Service Austria must be informed immediately after the event occurs.
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Consultation takes place with the involvement of the works council (if not present, the relevant trade union).
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The request can be made 3 weeks retroactively to the start of short-time work.
Note: This must be documented in the justification of the temporary economic difficulties.
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In view of the short-term nature and unpredictability, it may not be necessary to conclude a social partner agreement. In these cases, short-time work is handled on the basis of an agreement at company level (works agreement or agreement with the employees concerned).
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The provisions on the minimum and maximum proportion of lost working hours must be complied with.
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01 July 2022
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Transition from the Covid-19 Model to a regular short-time working support model
In the current economic situation, only very specific individual cases of temporary and non-seasonal economic difficulties are granted short-time working support, if there are no other possible solutions. The duration of the granting of aid is limited to a maximum of six months and ends no later than 31 December 2022. The amount of aid is calculated from the rules applicable to Covid-19 short-time working support and a deduction of 15% is made. This means that 85% will be paid out.
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Use of measure
For the COVID-19 short-time working support, a budget of €12 billion is available for 2020, an additional €1.5 billion are budgeted for 2021. As of 30 September 2020, the approved applications (including extensions) amount to €8.4 billion, and €4.8 billion have been paid. About one-third of the approved subsidy volume refers to manufacturing, 18% to trade, and between 6-8% (each) to construction, transport, hotel and restaurants, freelance, scientific and technical services as well as other business services.
As of 30 September 2020, about 168,000 applications (including extensions) have been received, and about 161,000 (96%) approved. About 1/5 of the approved applications are from the trade sector, around 10-15% from hotels and restaurants, freelance, scientific and technical services, construction and manufacturing, each.
The share of workforce covered by approved applications increased steadily from March to late May 2020, where it reached more than 1.3 million employees (about 37% of the workforce). Until late September, the numbers have been decreasing to about 300,000 (8% of the workforce).
Target groups
Actors and funding
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Actors
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Funding
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National government
Employers' organisations
Public employment service
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Employer
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
Unknown
Views and reactions
Unknown
Sources
