Covid-19 (Corona virus) – What to watch out for now?

The corona pandemic currently sweeping Europe has already led to massive cuts here. As a result, important sectors of the economy have to contend with significant losses, which in turn can have a negative impact on the workforce. The following is a brief outline of some of the possible effects on the employment relationship. If you are specifically affected, we will be happy to provide you with advice and support.

Disease
If you have Covid-19 yourself, the same rules apply as for other diseases. An employee continues to receive his or her remuneration under the Continued Remuneration Act if he or she is incapacitated for work through no fault of his or her own and the employment relationship has already existed for at least four weeks. The continued payment of wages by the employer is paid for up to six weeks. If the illness persists, there is usually an entitlement to sick pay.

Quarantine
When quarantine is ordered by the authorities due to Covid-19, claims under the Protection Against Infection Act are likely to be present if there are no other claims for continued pay. Here, too, loss of earnings is paid for a period of up to six weeks. Subsequently, the entitlement is reduced to the amount of sick pay. In the case of employees, the employer is responsible for the continued payment of wages during the first six weeks. The latter may have the amounts paid reimbursed by the competent health authority on application. Self-employed persons apply for compensation directly to the Office themselves.

Short-time work
Companies cannot unilaterally order short-time work. Certain requirements must be met in order to order short-time work, but these requirements have been lowered until Dec. 31, 2020, as a result of Covid-19. If the requirements are met and short-time work is ordered, the working hours to be performed will be reduced, which will be accompanied by a reduction in the remuneration entitlement. Short-time allowance is paid by the Federal Employment Agency for the difference between this amount and the other net pay, but only to the amount of 60% of the lost flat-rate net pay (67% if there is a child in the household). This at least mitigates the consequences of short-time working. The application is made by the employer.

This brief overview does not claim to be exhaustive. It provides only an initial orientation on some areas that may be affected.



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