Austrian AMSG: short-time work rules updated on employer social-insurance duties and COVID clawback protection
Amendments to Austria's Labour Market Service Act (Arbeitsmarktservicegesetz – AMSG) clarify that employers must alone cover the social-insurance contribution gap during short-time work (Kurzarbeit) and confirm that subsidies for Kurzarbeit begun between 1 March and 31 May 2020 may not be reclaimed solely because a fully paid calendar month before start was missing.
What changed
During Kurzarbeit, social-insurance contributions are calculated on the last (higher) contribution basis before short-time work started. The employer must alone bear the employee's share of social-insurance contributions on the gap between that elevated basis and the current reduced basis. A new provision (§ 8) confirms that for Kurzarbeit begun between 1 March and 31 May 2020, the absence of a fully paid preceding calendar month is not grounds for demanding repayment of the subsidy.
Who is affected
Employers who apply for or use Kurzarbeit subsidies and the employees placed on reduced hours. Businesses that used COVID-19 Kurzarbeit in spring 2020 benefit directly from the new clawback protection.
What to look out for
Employers running Kurzarbeit should budget for the additional social-insurance costs arising from the contribution-basis gap. Employers who received COVID-19 Kurzarbeit subsidies for the March–May 2020 period and now face a repayment demand solely on the ground of a missing fully paid prior month do not owe repayment under § 8.