Companies can generally claim KAE for eligible working time lost, provided the conditions for entitlement under the Unemployment Insurance Act are met. This applies to working time lost as a result of massively increased energy prices or in the event of a shortage of energy when official action is taken.
KAE in connection with massively increased energy prices:
If an application is made for short-time working in connection with increased energy prices, this fact on its own is insufficient.
The official body will also review the following three dimensions:
- The energy intensity of the company (e.g. how large is energy as an input factor in production, and in the sector in general?)
- For companies that procure electricity/energy on the open market, what is their contracted position? (fixed-price or variable contract, and for how long?)
- The ability to pass on higher energy costs (can they be passed on to customers in the form of higher prices? What are margins like in the industry?)
These points are not examined in isolation, but put in the overall context of the company. Simply reducing production voluntarily or for reasons of profitability does not constitute acceptable grounds.
If your company is being hit hard by energy prices, we recommend working through the questions above in detail so you are able to submit sufficiently strong grounds to the authority.
KAE in connection with a shortage of energy when official action is taken.
This is a much simpler situation and the only requirement is that production has to be cut due to official action, e.g. rationing.
The relevant authorities will provide information about the possibility of claiming KAE at the appropriate time if this occurs.
