Short-time work allowance is sixty or sixty-seven percent of the income lost as a result of short-time work and is generally limited to six months; this period can be extended in special operational situations. If regular wages are barely enough, workers affected by short-time work want to bridge the work slack with a loan. However, applying for it is not always easy.
The bank loan with short-time allowance
Many commercial banks fundamentally reject the loan despite short-time work allowance because the work of the employment agency is only provided temporarily and the subsequent receipt of regular wages is not considered to be secure. In fact, ordering short-time work turned out to be the last unsuccessful attempt to ward off bankruptcy at some companies.
However, by far the most companies returned to normal working hours after the short-time working phase, so that the repayment of the loan is secured. If employees apply for a loan despite short-time allowance, they choose a bank that takes the specific individual case into account. A loan with a temporary repayment break is ideal, so that the payment of the loan installments only begins after the end of the short-time phase.
Alternatives to bank loans with short-time work benefits
If the total income from the remaining wages and short-time allowance is lower than the standard rate, short-time workers have a temporary entitlement to reform benefits. In individual cases, these entitle to an interest-free loan despite short-time allowance if urgently needed household appliances have to be purchased. In the retail sector, an installment payment agreement can also be made as a dedicated loan while receiving short-time work benefits, since income receipts hardly need to be presented. Installment payments can often be linked to a break in payment, so that the first installment is only due after the end of short-time work.
Loans can also be obtained through short-time work allowance via websites for arranging loans between private individuals. The members registered as lenders subscribe to credit inquiries from short-time workers for social reasons, since they are aware of the special situation of the workers concerned and have confidence in the continued employment and thus in the borrower’s repayment ability.