FIS Corona

Project lead
Prof. Dr. Deborah Jackwerth-Rice

Project staff
Malte Simon

Third-party funding provider
Federal Ministry of Labour and Social Affairs
Part of the interdisciplinary social policy research funding network

Project duration
September 2020 – August 2021

The research project was funded by the Interdisciplinary Social Policy Research Funding Network (FIS) of the Federal Ministry of Labour and Social Affairs (BMAS). Structural gaps in the claiming of short-time work benefits (Kurzarbeitergeld - KUG) during the Corona pandemic were examined as well as the resulting economic and social issues. Telephone interviews in five cities were conducted with standardised questionnaires on the topic of causes and consequences of not claiming the so-called KUG in hairdressing salons and dental practices. Recommendations were compiled as to how to increase the KUG claimed by small and medium-sized companies.

During the first lockdown (March-May 2020) 29% of all dental practices and 19% of all hairdressing salons announced they were reducing their working hours. (Only) at the dentists was this partly due to a low level of absenteeism; otherwise, the most common reason, according to our study, for not claiming benefits for the reduced working times were: 

• A lack of knowledge in terms of whether you could actually claim the benefits (KUG) (especially hairdressing salons)
• In solidarity with the employees (especially hairdressing salons) and with society (especially dental practices) respectively
• Incorrect advice from tax advisors/payroll offices (especially hairdressing salons) and associations of medical practitioners (especially dental practices) respectively
• Too much work involved in claiming KUG (especially dental practices).

Across sectors, most companies which did not claim KUG during the first lockdown reported a loss of income (in the hairdressing industry, this was often connected to a critical financial situation) as well as the mental pressure on business owners and employees.
 
So as to make the claiming of benefits more accessible especially for small business owners who do not have a professional accountant in the future, there are the following recommendations during time of crisis:

• to further extend communication between the BA and trade associations, e.g. the German Chamber of Tax Advisors and tax advisory services respectively, on a national, regional and local level;
• to inform especially the smallest businesses immediately and as easily as possible as to where they can obtain information on claiming KUG as well as find supportive tools like the chatbot UDO - or through an informative campaign.