Author
Listed:
- Weber, Enzo
(Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Regensburg)
- Yilmaz, Yasemin
(Institute for Employment Research (IAB), Nuremberg, Germany)
Abstract
"In the course of the COVID-19 pandemic, short-time work has once again proven to be an effective instrument to stabilise employment. However, the mass and fluctuating use that this effort entailed encountered an instrument based on individual eligibility. The complete processing of all cases in Germany will take years, with corresponding strains and uncertainties for firms and labour administration. Against this background, this article discusses various possible approaches of a mass use directive for short-time work. A glance at European countries indicates that a simplification of short-time work, which is necessary in view of exorbitant case numbers, could be achieved by using the legal instrument of force majeure. If this is declared for certain sectors of the economy, these will have access to short-time work with simplified criteria and procedures. This is the context against which such simplifications are proposed for Germany. Given various examples on international level, an even more far-reaching variant would no longer consider the loss of individual working hours, but would provide for subsidies on the total wage costs. These should depend on the lost revenue. However, layoffs would have to be excluded in order to preserve the benefits of direct job retention while simplifying matters considerably. For the sake of not restricting flexibility too much, a basic level of layoffs could be made possible or the subsidy could be reduced proportionately in the case of redundancies due to operational reasons. In view of the lower precision, the more far-reaching variant may be considered if there are extensive economic shortfalls in certain sectors. A mass use directive is distinct from other targeted economic assistance independent of the principle of short-time work or job retention. Such assistance can be applied additionally if further measures beyond the compensation of labour costs are required to secure liquidity in a crisis. Furthermore, targeted economic assistance is the more appropriate instrument when it comes to avoiding production downtimes rather than cushioning them. Particularly in the case of mass use of short-time work, the connection with qualification becomes important. In order to cope with conditions of uncertainty and organisational difficulties, a concept with flexibly applicable, modular, also online-based further training formats, incentives and counselling services is essential. Finally, preconditions for the phase-out of the mass use scheme have to be outlined. This is because the performance of short-time work may deteriorate severely if it continues beyond the crisis phase. The exceptional situation would have to be officially ended - or extended - at an appropriate time with sufficient notice. As a guideline, objective criteria could refer to the revenue development in the affected sectors, the utilisation of the mass use provision and the withdrawal of state-ordered restrictions. Subsequent schemes may provide for transition to regular short-time work, a gradual reduction of wage subsidies and liquidity support." (Author's abstract, IAB-Doku) ((en))
Suggested Citation
Weber, Enzo & Yilmaz, Yasemin, 2022.
"Ausgestaltung von Kurzarbeit bei massenhafter Nutzung,"
IAB-Forschungsbericht
202210 (de), Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
Handle:
RePEc:iab:iabfob:202210(de)
DOI: 10.48720/IAB.FB.2210
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