Short-time allowance and leave

The instruction of the Federal Employment Agency provides information on the calculation of short-time allowance in 2021. It is interesting to note how leave is to be dealt with.

Residual leave from 2020

Employers who continue or are again affected by short-time work in 2021 must agree with their employees that they will take their remaining leave from 2020 during the work stoppage. Otherwise, the Federal Employment Agency will assume that the loss of work was avoidable to the extent of the days of leave, with the consequence that no short-time allowance will be paid for these days.

Holiday entitlements from 2021:

Furthermore, it is regulated that holiday entitlements for the current year are to be used as a matter of priority to avoid short-time work.

This means that holidays already planned must be taken and may not be postponed due to short-time work. Short-time allowance is not paid for holidays taken.

For holidays that have not been planned, the employer must set the date before the end of the year (provided that short-time work is continued until the end of 2021), so that the loss of work is reduced. The wishes of the employees must of course be taken into account.

In this difficult and ongoing situation, we recommend communicating transparently with the team and working together to find a good solution for all sides. 

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