On the draft of an Act to Secure Employment in the wake of the COVID-19 pandemic. Statement of the IAB on the public hearing in the Committee for Labour and Social Affairs of the German Bundestag on 16 November 2020

Abstract

"On 16 November 2020, the hearing took place in the Committee for Labour and Social Affairs of the German Bundestag on the ”Draft of an Act to Secure Employment in the wake of the COVID19 pandemic (Beschäftigungssicherungsgesetz – BeschSiG)” and on the motion ”To extend the special provision for Unemployment Benefit I in addition to the special provision for short-time work and to introduce a further training allowance”. In its statement, the IAB covers the extension of the amount and the entitlement period to the short-time work allowance, further training and the further training allowance, the reimbursement of social security contributions and the extension of the entitlement period to unemployment benefit. In the opinion of the IAB, extending the period of entitlement to the short-time working allowance is instrumental in stabilising the general economic situation for companies and employees; it is therefore appropriate that the increase in the short-time working allowance also be extended. However, the provision for increasing the short-time working allowance in the case of lengthy, extensive short-time work would in itself serve little purpose from a distributional perspective and could lead to misguided incentives. It would be advisable to make obtaining further training during long periods of short-time work mandatory where possible. The IAB does not view any significant undue incentive in excessive recourse to short-time work, and subsequent termination of employees, that would have to be removes by a repayment obligation. There may be arguments in favour of extending unemployment benefits, yet measures to encourage further recruitment and employees’ further training are, however, the primary concern." (Author's abstract, IAB-Doku) ((en))

Cite article

Weber, E. & Fitzenberger, B. (2020): Zum Entwurf eines Gesetzes zur Beschäftigungssicherung infolge der COVID-19-Pandemie. Stellungnahme des IAB zur öffentlichen Anhörung im Ausschuss für Arbeit und Soziales des Deutschen Bundestags am 16.11.2020. (IAB-Stellungnahme 13/2020), Nürnberg, 9 p.