What is short-time working compensation?

Short-time working is the temporary reduction or complete cessation of work in a company, whereby the contractual relationship under labour law is maintained. Short-time working is usually related to economic circumstances. Short-time working also includes work losses that are due to official measures or other circumstances for which the employer is not responsible. This also includes work loss due to weather-related customer defaults.

The introduction of short-time working is intended to compensate for temporary employment setbacks and secure jobs. With the short-time working compensation (KAE), the insurance company offers the employer an alternative to threatened redundancies.