Short-time work means that, in an unforeseen temporary economic crisis leading to a considerable loss of work, the working time in a company can be reduced for a limited period during which the employer receives wage subsidies to  pay to his or her employees. In this way, short time work helps companies to weather an economic crisis without having to dismiss employees, thus to secure their employment and operational know-how. Once the crisis is over, companies can immediately start again operating with their well-established teams. 

The national social partners, the Chamber of Economy (Wirtschaftskammer Österreich, WKÖ) on the employers’ side, and the ÖGB and the Federal Chamber of Labour (Arbeiterkammer, AK) on the workers’ side, agreed in March 2020 on a special COVID-19 short-time working scheme.  The agreement had an initial term of three months (1 March – 31 May).

According to this scheme:

• the working hours can be reduced between 10 and 90% of the regular working time (, the reduction can be temporarily up to 100% but on average it must not exceed 90% of the short time working period);
• in case of short time work up to three months, holidays from previous years or banking holidays of the current year need to be used; if short term extends, at least three weeks of the holidays from the current year need to be taken;
• the employer obtains from the public employment service (AMS) a short time work allowance (Kurzarbeitsbeihilfe) for the hours not worked which enables the payment of up to 80 – 90% of the regular salary to the workers;
• apprentices continue to receive 100% of their wages;
• the employer must not dismiss workers during the short time work period and up to one month after it.

The concrete scheme used at the company level has to be requested by means of application under Section 37 b/c of the AMS Act to the public employment service (Arbeitmarktservice, AMS), containing:

• a brief explanation in writing of the economic difficulties (reference to COVID19 and its aftermath);
• the social partner agreement of the scheme at the company level, signed by the employer and either the works’ councils, or with all employees concerned.

The scheme can be requested for duration of 3 months and then extended for further 3  months.

The request then has to be presented to the social partners, who have to approve or refuse it within 48 hours.

Social security contribution continued to be paid as if no reduction on working time was operating; the difference was reimbursed by the AMS.

On 25 May 2020, the social partners agreed on a prolongation for another three months (1 June – 31 August). At the end of June, negotiations on a further prolongation have started. It is estimated that to date, thanks to the COVID-19 short time working scheme, some 1.3 million jobs were safeguarded.

The President of the Employers’ Association Industriellenvereinigung (IV), Georg Kapsch and Secretary General Christoph Neumayer expressed their appreciation for the agreements stating that “We are currently in a very challenging phase of rebooting the Austrian business. We need suitable framework conditions in every respect. With the agreement on short-time working that has now been reached, an important step has been taken in this regard”.