Short-time working allowance

The short-time working allowance is a payment made from the Unemployment Insurance Fund to employees where weekly working time at a workplace is substantially reduced, or operations are suspended, due to a general economic, sectoral or regional crisis or force majeure.

The scheme starts with the employer's application and an eligibility assessment, and is limited to a statutory maximum period. Employees qualify if they meet the premium conditions applicable to unemployment benefit. The allowance is calculated as a statutory fraction of the wage subject to a ceiling, and general health insurance premiums are covered during the period.

The scheme was used extensively during the pandemic, with conditions temporarily relaxed. Audits concerning dismissal restrictions during short-time work and misuse of the allowance can later result in administrative sanctions and repayment claims.