Between March 2020 and February 2021, the government spent a total of €985.3 million on partial unemployment.
Minister Kersch provided further insight into the government measure, while simultaneously presenting the new plans for short-term employment, which will come into effect in May: “Partial unemployment has helped a number of businesses stay afloat, but there is no guarantee that it will still be the case in 2021.”
Before the pandemic, an average of 18 businesses benefitted from the partial unemployment programme per month, with costs ranging around €635,000. Since the beginning of the crisis, 15,380 businesses have applied for short-term employment, out of which most are in retail, construction, or the hospitality sector.
At the moment, sectors that are not considered vulnerable are eligible to have up to 15% of working hours compensated. This will however change in May, Minister Kersch announced: “The covered amount of working hours will be reduced to 10% in invulnerable sectors. Furthermore, vulnerable businesses from the hospitality sector, event management, and tourism will only have 50% of their working hours compensated via partial unemployment, under the condition that no employees are let go.”
Nevertheless, there are a number of exceptions: “These conditions may be rebutted if a company introduces a redundancy programme, a recovery plan, or an inter-professional agreement.”
Minister Kersch stated that these changes are designed to help as many businesses as possible avoid bankruptcy, save jobs, and provide time to prepare for the new situation ahead. Until June 2021, partial unemployment will be guaranteed by the government, the LSAP politician further underlined. He also conveyed that he believes the measure might remain in place even beyond said date: “It may become more selective and goal-oriented than it is today. But it will surely remain a powerful tool, which can protect our economy.”
Partial unemployment benefits are paid out within two to four weeks, if the required conditions are fulfilled. However, in many cases there are significant documents missing in the first application, which eventually causes delays in the process, Minister Kersch emphasised.
