In Brief
02. Dec 2024

Short-time working allowance - Apply in due time as it cannot be granted retroactively

According to Section 99(2) sentence 1 of the German Social Code Book III, the short-time working allowance will be granted from the month in which the Federal Employment Agency receives the notification. However, according to a recent decision by the Higher Social Court (Landessozialgericht, LSG) of North Rhine-Westphalia, sending the application by post harbours the risk of a delayed delivery.

The LSG of North Rhine-Westphalia, in its ruling of 13.5.2024 (case reference: L 20 AL 201/22) provided a decision on a company where the criteria for short-time working had been demonstrably met since April 2020. On 23.4.2020, the company brought the application for the short-time working allowance to the post office as a not signed-for recorded delivery. However, as the letter did not arrive at the Federal Employment Agency until 2.5.2020 the short-time working allowance was only authorised for May and not retroactively for April. Neither the Federal Employment Agency nor the Higher Social Court found in favour of the company.

Please note

Employers have the option of submitting the notification to the Federal Employment Agency electronically or in person. However, if they decide to use the post and do not check that the application is received in due time then the employer will have to bear the responsibility for the negative consequences ensuing from delayed delivery and the application not arriving until the following month.