Germany: the Grand Coalition adopts new partial unemployment measures

Whereas, in December, the number of jobseekers went back over the 3 million bar, the Grand Coalition agreed, within the framework of its second revival plan adopted on January 12, 2009 (see our dispatch No. 090037), to make partial unemployment measures even more attractive to help businesses keep their employees through the downturn. This decision was unanimously welcomed by unions and employers. (Ref. 090040)
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Thus, after
postponing, on January 1, 2009, the legal duration of partial unemployment from
12 to 18 months (see
our dispatch No. 090001
), Chancellor Angela Merkel announced that the
Federal Employment Agency (BA) would pay, in 2009 and 2010, for half of social contributions which were until then only paid by employers for partial
unemployment measures. The Agency will even reimburse all of employers’ social contributions if the employees sent
to partial unemployment attend continuous training

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