Austria: health crisis related short time working altered slightly and extended until March 2021

Austria’s short time working allowance, one of Europe’s most generous, in so far as it covers between 80% and 90% of the employee’s latest net salary, will be extended beyond the initially planned end date of 01 October 2020. As such, companies can, until March 2021, continue filing applications for a maximum of 6 months. Following two earlier extensions of the short-time working provision, each of which was for three months, the government and the social partners agreed at the end of July on this latest extension until March 2021, albeit this time it is accompanied by some minor modifications compared to the previous versions. Thus in order for a company’s employees to benefit from the new allowance called ‘Short-Time Unemployment III’ (Kurzarbeit III), they will have to be working within the narrower 30% – 80% (max) range of regular normal working time, compared with wider 10% – 90% range previously. Only a company agreement with the social partners will enable them to work fewer hours. Compensation levels remain unchanged. The new formula introduces an obligation for recipients to undertake any training courses that employers may organize and in the event of any interruptions, to complete their training programs within 18 months of the measure.