The Kuzarbeit procedure, whereby employers can reduce the working hours of employees due to reduced activity and receive 75% of the employee’s basic salary for the hours of reduced working hours, has been extended until the end of 2022, according to EMERGENCY ORDINANCE 73 supplementing EMERGENCY ORDINANCE No. 132. /2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as for stimulating an increase in employment, which was published in the Official Gazette (Part I) No. 536 of 31 May 2022.
Another change brought by the EMERGENCY ORDINANCE 73/2022 is that the reason for the application of the procedure can be the decrease in production by at least 10%, in addition to the decrease in turnover, as originally foreseen in EMERGENCY ORDINANCE 132.
Companies that have not applied so far must follow the next procedure:
- reduction of working time of not more than 80% of the daily, weekly or monthly working hours of employees must be made, by a decision, at least five days before the actual application;
- the measure must concern at least 10% of the number of employees of the establishment;
- the reduction in activity is justified by a decrease in production in the month for which the measure is requested or, at the latest, in the month preceding the month prior to that month, by at least 10% compared to the same month or compared to the average monthly production in 2019.
- subsequently, employers must submit the following documents to the territorial employment agencies:
- a copy of the decision on the reduction of working hours and proof of its notification to the employees;
- the employer’s own declaration (current form to be published);
- copy of the agreement concluded with the trade unions or, where applicable, proof of information to the employees where there is no trade union;
- the list of persons who are to receive the Kurzarbeit allowance;
- copy of the salary payment documents, showing the payment of the allowance.
The employer will pay the allowance of 75% for reduced working hours from the personnel costs budget, together with 100% of the salary for the hours actually worked by the employee on the date of the salary.
Subsequently, by the 25th of the month for the payment of the allowance for the previous month, the employer shall submit the above-mentioned documents to the territorial labour agencies.
Provided the documents are correct, the agencies issue a settlement decision within five days and the allowance is transferred to the bank accounts opened by the employer.
For wages and allowances paid to employees during the Kurzarbeit period, employers are liable to pay labour insurance contributions and must withhold income tax and compulsory social security contributions.