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A Useful Tool for Global Employers

By John D. Shyer and Tobias Leder
November 27, 2012

While readers outside of Germany may not have heard of “short-time” work, within that country its use is on the rise again. With the economy facing yet another possible downturn, some large companies have publicly announced that they may reduce their employees' working hours in order to realize substantial salary savings. The legal tool to implement such a reduction of working time is known as “short-time work.” For the benefit of global companies with operations in Germany, this article explores how short-time work can be introduced, and which rules must be observed in order to qualify for associated government grants.

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