Employees, general information
1.) As an employee, may you stay home because you fear catching the virus at work?
No, employees may only stay away from work if they are actually unable to work. Unexcused absence from work can trigger consequences under employment law.
2.) May employees stay away from work because schools and daycare centres are closed?
Under § 616 BGB, this is possible for a short period with continued normal payment of wages. However, it must first be carefully examined whether another form of childcare is available. A look at the employment contract or collective bargaining agreement is very important here, because § 616 BGB may be excluded therein. If that is the case, employees cannot rely on § 616 BGB. In such a case, employees must use their vacation days or take unpaid leave.
We hope this provides you with an initial overview.
Important additional information on short-time work allowance (Kurzarbeitergeld):
The amount of the short-time work allowance depends on the employee's tax deduction features. As a general rule, around 60% of the lost net wage is paid.
If at least one child lives in the employee's household who is to be taken into account for tax purposes under § 32 Abs. 1, 3 to 5 EStG (= entry of a child allowance on the tax card), the short-time work allowance amounts to approximately 67% of the lost net wage.
For a child who has reached the age of 18, under certain conditions (e.g. vocational training), upon application, the tax office may enter the child allowance on the electronic wage tax card.
Attention: Child allowances are only entered for tax classes I, II, III and IV.
IMPORTANT: Employees with tax class V or VI!!!
The higher benefit rate 1 (short-time work allowance of 67%) may also be granted if the existence of a child within the meaning of § 32 Abs. 1, 3 to 5 EStG has been verified by a corresponding certificate from the Federal Employment Agency (Agentur für Arbeit). The issuance of such a certificate by the Agentur für Arbeit may be applied for informally by either the employer or the employee. The necessary information must be provided in this application.
The following documents must be enclosed:
• Employees with wage tax class V:
Extract from the spouse's electronic wage tax card or a certificate from the tax office or the employer confirming the entry of child allowances on the spouse's electronic wage tax card.
• Employees with wage tax class VI:
Extract from the electronic wage tax card (tax class I, II, III or IV).
• Employees whose children reside abroad:
If possible, a certificate from the tax office confirming that a tax allowance is being granted for the support of at least one child within the meaning of § 32 Abs. 1, 4 and 5 EStG.
If the 60% rate is "erroneously" applied once, this cannot be remedied retroactively!
For details, please contact the payroll department directly.
26 March 2020 – Current information from our Rechtsanwältin (German Attorney-at-Law) Kerstin Steffen, Fachanwältin (German Specialist Attorney) for employment law, on financial assistance for parents
see also: https://www.steffen-recht.de/corona-pandemie-finanzielle-hilfe-fuer-eltern/
The Bundestag has resolved that families in which the parents are unable to work due to school and daycare closures may, under certain conditions, receive financial assistance.
Under employment law, employees must continue to perform their work even if schools and daycare centres are closed. Pursuant to § 616 BGB, the employer is in principle required to pay wages for up to 5 days even if employees are unable to work due to childcare obligations, but only if § 616 BGB has not been excluded in the employment contract or collective bargaining agreement.
Many parents who do not work in a systemically relevant profession and therefore have no entitlement to emergency childcare now face a financial crisis.
To address this problem, the Bundestag has now resolved that in such cases the state will step in and at least partially compensate for the loss of earnings. The amended version of the Infection Protection Act (Infektionsschutzgesetz) provides for compensation of the loss of earnings of those who have to stay home due to a lack of childcare and are therefore unable to work. Under the amended version, 67 percent of net income is to be replaced, for a maximum duration of 6 weeks and up to a maximum of €2,016 per month. The loss of earnings will not be paid during school holidays and is limited to parents of children under 12 years of age.
The following conditions must be met for the entitlement to compensation for loss of earnings:
- There must be no entitlement to emergency childcare
- It must be credibly affirmed that the parents are otherwise unable to ensure childcare (families in which one partner does not work are therefore not entitled)
- Overtime credit on a working time account must first be used up
- Working from home is not reasonable (this is presumably the case when smaller children need to be looked after).
The loss of earnings will initially be compensated by employers, who in turn can reclaim the money from the state. Self-employed persons must submit an application to obtain the money. The federal states will yet determine which authorities are responsible for processing the applications.
As soon as further information becomes available, we will report on it immediately.
Protection against termination of leases
Tenants who are unable to pay their rent between 1 April and 30 June 2020 are given special protection. This means that landlords may not terminate their leases until 30 September 2022!
Construction loans of landlords
Since landlords may temporarily encounter liquidity difficulties due to short-term rental shortfalls in the near future, construction loans of such landlords may initially be deferred, i.e. as a landlord you do not have to make any interest or principal payments for the time being.
Consumer loans / construction loans
If money becomes tight for you:
Loans from the bank and consumer loans that fall due between 1 April and 30 March 2020 do not have to be paid within the next six months. They may therefore be settled later.
Basic services = rent, gas / electricity / water, insurance, telephone, …
If, as an employee, you have run into payment difficulties here too as a result of the coronavirus crisis, you may suspend payments for the time being, and basic service providers will continue to provide their services.
According to Schufa, no entry will be made for the time being if such amounts have not been paid.
Tradesman invoices, etc.
Attention: One-off invoices, such as tradesman invoices, remain IMMEDIATELY due!
Frequently asked questions
Frequently asked questions
Are employees allowed to stay away from work out of fear of infection?
No. Employees may only stay away from work if they are actually unable to work. A mere fear of possible infection at the workplace is not sufficient. Unexcused absence may result in employment law consequences such as a formal warning or termination.
How much is Kurzarbeitergeld (short-time work allowance) and what role do children play?
Kurzarbeitergeld generally amounts to around 60% of the lost net pay. If at least one child eligible for tax consideration within the meaning of § 32 Abs. 1, 3 to 5 EStG lives in the household, Kurzarbeitergeld increases to around 67%. As a rule, a registered child allowance (Kinderfreibetrag) on the income tax card is required.
How can employees in tax class V or VI obtain the increased short-time work allowance (Kurzarbeitergeld)?
In tax classes V and VI, no child allowance is normally entered on the tax card. The increased rate of 67% can still be granted if the child is verified by a certificate from the Agentur für Arbeit (Federal Employment Agency). Either the employer or the employee may file an informal application, attaching, for example, an extract of the spouse's tax card (for class V) or the employee's additional tax card (for class VI). A payment incorrectly settled at 60% cannot be corrected retroactively.
What compensation do parents receive for loss of earnings due to school or daycare closures?
Under the revised Infection Protection Act, affected parents receive 67% of their net income, capped at €2,016 per month and for a maximum of 6 weeks. Eligible are parents of children under 12, provided no emergency care is available, working from home is not reasonable, and overtime has already been used up. No payment is made during school holidays.
What protection against termination applies to tenants with rent arrears due to Corona?
Tenants who are unable to pay their rent between 01.04. and 30.06.2020 due to Corona enjoy special protection. Landlords may not terminate their leases on the basis of these rent arrears until 30.09.2022. However, the rent remains owed and must be paid in arrears at a later date.
Can consumer and home construction loans be deferred during the coronavirus crisis?
Yes. Consumer loans and home construction loans with installments due within a defined period can be deferred for up to six months. Payments need not be made during this time but can be settled later. Landlords facing liquidity problems due to rental losses can also temporarily defer their construction loans without paying interest or principal.