Easy short-time work mapping: how companies can master planning and documentation digitally

in Germany to temporarily reduce their employees' working hours when orders, projects, or production volumes decline. Employees therefore work fewer hours but still receive a large portion of their salary because the loss of earnings is partially offset by the German Federal Employment Agency (Bundesagentur für Arbeit).

This instrument is particularly important for companies doing business in Germany, as it helps them maintain their workforce during temporary downturns and avoid layoffs.

Short-time work also does not necessarily mean zero work: often, only part of the regular weekly working hours are reduced (e.g., from 40 to 28 hours). However, so-called “zero short-time work” is also possible, in which no work is performed temporarily—typically when projects are completely suspended or supply chains are disrupted. Companies can spread the reduction continuously throughout the week (e.g., working shorter hours every day) or organize it in blocks (e.g., individual whole days/weeks). This allows the measure to be tailored to the needs of the business and the team.

Financially, short-time work works as follows: The employer pays the reduced wage for the hours actually worked. For the lost portion, employees receive short-time work compensation in accordance with legal requirements – a mechanism that cushions income losses while preserving the liquidity of the company. Employers can also pay voluntary supplements or use the phase for training measures to prepare employees for future requirements.

For short-time work to be legally valid, transparent agreements (e.g., works agreements or individual consent forms) and comprehensible documentation of target and actual working hours are required. In practical terms, this means that the planned scope of work is temporarily reduced and the hours actually worked are accurately recorded – as a basis for payroll accounting and audits. In many cases, it is also necessary to check whether time credits (e.g., overtime) must first be used up before short-time work can take effect.

Typical triggers for short-time work include declines in demand, project postponements, delivery bottlenecks, rule changes, or industry-wide shocks. Responding early and clearly communicating the measure avoids uncertainty within the team and creates predictability for the coming weeks.

Distinction: Short-time work is not part-time work (permanent contract change), not unpaid leave, and not a home office issue (place of work). It is a temporary reduction in working hours with state compensation—a crisis buffer, not a normal state of affairs.

Short-time work is now a well-established instrument of German labor market policy—and it has proven itself over decades as an effective tool in times of crisis. To understand how short-time work functions and why it can be used so flexibly, one must examine both its origins and the legal framework. History shows that short-time work comes to the fore primarily in exceptional economic situations, while the law sets the rules to prevent abuse and ensure fair implementation.

Since when has short-time work existed in Germany?

Short-time work is not a new concept, but has been used in Germany for many decades to cushion economic fluctuations. Its origins date back to the period after the Second World War, when the aim was to mitigate production bottlenecks, seasonal fluctuations, and economic upheavals without permanently losing valuable jobs.

Short-time work gained particular prominence during the financial and economic crisis of 2008/2009. At that time, short-time work programs in numerous industries—especially in the automotive and mechanical engineering sectors—prevented mass layoffs. Companies were able to retain their skilled workers even though demand temporarily slumped sharply.

An even clearer picture of its effectiveness emerged during the coronavirus pandemic from 2020 onwards: within a few weeks, hundreds of thousands of companies across all sectors – from manufacturing and service providers to IT and creative companies – registered for short-time work. Millions of employees were affected. The measure not only helped to mitigate the economic consequences of the lockdown, but also to maintain the functioning of entire sectors of the economy.

Then, as now, it has been shown that short-time work can be the decisive factor in securing jobs in the long term and avoiding layoffs. It acts as a buffer between economic uncertainty and the often drastic decisions that companies would otherwise have to make in times of crisis.

Historical highlights of short-time work

1950s/1960s: First legal regulations to provide support during seasonal fluctuations

1970s: Use during the oil crisis and economic upheavals

2008/2009: Key measure in the financial crisis

2020–2021: Massive use during the coronavirus pandemic

Legal basis (Section 95 ff. SGB III)

The legal basis for short-time work is laid down in the Third Book of the Social Code (SGB III). Sections 95 to 109 define precisely the conditions under which short-time work can be applied for, how the procedure works, and how short-time work compensation is calculated.

The most important points are:

Significant loss of work with loss of pay: At least 10% of employees must be affected by a loss of work of more than 10%. The loss must be temporary and unavoidable.

Notification to the Employment Agency: Before short-time work benefits can be paid, the loss of work must be officially reported to the responsible Employment Agency.

Consent of the employees affected or works agreement: Short-time work cannot be imposed unilaterally – it requires the consent of those affected or a corresponding agreement with the works council.

The law ensures that short-time work is only used when it is actually necessary and that the measure is implemented in a transparent and comprehensible manner. It also creates a clear framework for calculating benefits, giving both employers and employees planning security.

Short-time work is more than just an emergency measure—it is a strategic tool that keeps companies operational in difficult economic times. It helps to bridge short-term declines in orders or sales without losing valuable expertise and well-established teams.
For many companies, it is therefore a decisive factor for long-term stability and competitiveness.

Securing jobs

The primary goal of short-time work is to preserve jobs. Instead of laying off employees, companies can temporarily reduce their working hours. This not only protects the livelihoods of employees, but also protects the company from the high costs and risks associated with staff reductions—such as severance payments, damage to the company's image, or a subsequent shortage of skilled workers when the order situation picks up again.

Another advantage is that employees retain their operational knowledge and remain involved in ongoing processes. In project-oriented environments in particular, this means that teams can continue to work seamlessly as soon as new orders come in or existing projects pick up speed again.

Example: A software company experiences a decline in orders in a specific product area. Instead of laying off developers, the working hours in this team are reduced to 60% for three months. As soon as a new major customer comes on board, the team can immediately get back to work at full capacity – without lengthy recruitment and training phases.

Bridging order slumps

In many industries, fluctuations in capacity utilization are part of everyday life. Seasonal differences, project delays, or external crises can mean that there is not enough work for all full-time employees at times. Short-time work makes it possible to bridge these lean periods until new orders come in or existing projects start up again.

This is particularly valuable for project-based companies – such as many of Projektron's customers: projects can continue to be planned in the background while operational tasks are reduced. The time gained can be used to improve internal processes, promote further training, or develop new product ideas.

Practical advantages:

Preserve liquidity: Labor costs are reduced without having to disband the team

Flexibly adjust capacity: Working hours can be increased or reduced depending on the order situation

Ensure responsiveness: Full commitment is possible again immediately when new projects come in

Flexibility for companies and employees

Short-time work is obviously not an advantageous situation for employees: it means real loss of income, uncertainty about future employment, and often psychological stress due to unclear prospects. Short-time work is therefore not a “benefit,” but a crisis tool that serves primarily to secure jobs—not to improve working conditions.

In order to at least ensure flexibility for companies and employees in this difficult situation, the instrument of short-time work is highly adaptable. Companies can individually determine by how many hours working hours are reduced and whether this is done evenly (e.g., shorter working hours every day) or in blocks (e.g., whole days or weeks off). This flexibility makes it possible to structure short-time work in a way that best suits the nature of the business and the needs of the employees.

For employees, this means planning security – they know exactly which days or at what times they will be working and can use their free time for further training, side projects, or private commitments. At the same time, short-time work compensation ensures that the loss of income is cushioned.

Short-time work is not just a question of decision-making, but also of correct implementation. It cannot be introduced arbitrarily. The legislator has laid down clear rules to ensure that short-time work is only used in justified cases and to prevent abuse.

For employers, this means that anyone planning short-time work must check whether the requirements are met and carry out the procedure correctly.

For many companies, the biggest challenge is documenting changes in working hours transparently and providing reliable evidence to the employment agency. With software such as Projektron BCS, these steps can be efficiently mapped digitally – from adjusting target working hours to audit-proof time documentation.

When can I apply for short-time work?

Short-time work may only be introduced if certain legal conditions are met. The most important hurdle: At least 10% of employees must be affected by a loss of work of more than 10% of their gross salary.

The loss of work must be temporary and unavoidable – this means that all other means must first be exhausted in order to maintain employment.

Possible triggers for short-time work:

Decline in orders: e.g., project cancellations or delayed orders

Supply bottlenecks: lack of materials prevents the completion of products or projects

Natural disasters: floods, storm damage, or other catastrophes

Crisis situations: economic crises, pandemics, or geopolitical events

Before applying for short-time work, companies must check whether time credits (e.g., overtime) or remaining vacation can be used up. Only when these options have been exhausted is the loss of work considered unavoidable within the meaning of the law.

Reporting procedure to the Employment Agency

The application for short-time work is made in two steps—and this order must be strictly adhered to:

Notification of the loss of work

Employers must report the loss of work in writing or online to the responsible Employment Agency.

The short-time work notification form is used for this purpose, which contains detailed information on the scope and expected duration of the measure.

The notification must be received no later than the month in which short-time work begins.

Monthly accounting and application for short-time work allowance

At the end of each month, the employer determines how many hours have actually been lost.

This data is entered in the application for short-time work allowance and submitted to the agency together with the time sheets.

The agency checks the documents and pays the short-time work allowance to the employer, who then passes it on to the employees.

The role of the time sheet

The time sheet is the key document when it comes to correctly accounting for short-time work to the Employment Agency. It documents how many hours an employee has actually worked and how many have been lost due to short-time work. Without complete and transparent documentation, there is a risk that applications will be processed late or even rejected.

Why time recording is so important

Short-time work compensation is not paid as a lump sum, but is based monthly on the hours actually lost. Employers must therefore document the following precisely:

Planned target working hours

Hours actually worked

Hours lost due to short-time work

The clearer this information is, the fewer queries there will be from the agency – and the faster the short-time work compensation will be paid out.

Requirements of the Employment Agency

The agency attaches great importance to completeness, traceability, and accuracy. Time sheets must:

Be kept promptly (preferably on a daily basis)

Be complete (no gaps)

Clearly distinguish between regular working hours, overtime, vacation, and short-time work

With a digital solution such as Projektron BCS, target and actual working hours can be automatically compared and exported as audit-proof time sheets. This saves time, reduces sources of error, and reliably meets the requirements of the Employment Agency.

In recent years, short-time work has become part of everyday working life for many companies. Numerous Projektron customers have also resorted to this tool during economically challenging times in order to remain flexible and secure jobs.

Project-oriented organizations in particular often feel the effects of order postponements or budget cuts very directly. If a planned project is put on hold or a customer pulls out at short notice, individual teams can quickly find themselves with nothing to do. Short-time work is an effective means of temporarily adjusting human resources without weakening the company in the long term.

Practical experience: Many companies had to register for short-time work

Whether during the coronavirus pandemic, supply chain problems, or economic fluctuations, numerous BCS customers have been forced to introduce short-time work in recent years. This ranged from selective adjustments—for example, for a single project team—to comprehensive reductions across entire divisions.

There was always one common denominator: the clearer the working hours were documented and the more transparently the changes were communicated, the smoother the settlement with the employment agency went. Many companies reported that manually managing short-time work in Excel quickly reached its limits, especially when target and actual working hours had to be adjusted frequently.

Challenges in implementation without suitable software

Without a suitable system, companies face several challenges:

• High administrative effort: Changes in target working hours must be manually updated for each person.
• Prone to errors: Incorrect or incomplete time sheets lead to queries or delays in payment.
• Lack of transparency: Employees often do not know exactly how their working hours will change during the short-time work phase.

Experience: Implementation of short-time work in Projektron BCS

Short-time work is not only a labor law issue, but also an organizational challenge. In practice, the existing functions and free configurability of Projektron BCS have proven to be particularly effective: They enable companies to map short-time work transparently, manage capacities flexibly, and adjust project plans realistically.

Our customers' experiences impressively demonstrate how different short-time work models – from uniform reductions in working hours to daily adjustments – can be successfully implemented. We are happy to share these testimonials here to provide guidance to other companies and highlight practical solutions.

At the same time, these reports are an incentive for us at Projektron: We want to help as many customers as possible to map their individual short-time work scenarios in the best possible way so that economically sustainable damage can be avoided.

Based on this experience, various approaches can be identified in practice that have proven particularly successful. Below, we present the three most common scenarios in which companies successfully map short-time work in Projektron BCS – from simple working time reduction to daily capacity control. These scenarios serve as a guide and show how the flexible configurability of BCS can be optimally utilized in practice.

Scenario A: Change in an employee's target working hours

The easiest way to map short-time work in Projektron BCS is to reduce the target working hours of the employees affected.

The reduced hours per weekday can be stored via internal changes. These adjustments can be made as often as desired – once at the beginning of short-time work or regularly, e.g., weekly.

Changes to the working time model may only be made by HR managers and must be agreed upon with the persons affected and, if applicable, the works council. Compliance with all legal requirements (e.g., regarding the accumulation of overtime) is also mandatory.

Scenario B: Target working time model remains unchanged

In some cases, it may be advisable or necessary to leave the working time model unchanged—e.g., because proof of target working time is an integral part of the performance records for the Employment Agency.

Possible approaches

Scenario C: Configurations

Various customers of Projektron GmbH have individually mapped their short-time working models in Projektron BCS. The implementations are as diverse as the organizations and their requirements. The following examples show how flexibly BCS can be adapted to different conditions:

Industrial automation company

This company planned to implement short-time work using a specially configured appointment type in Projektron BCS. It was particularly important for them that the various appointment types were listed separately in internal capacity planning – specifically in the capacity forecast. This allowed them to see in detail at any time which resources were available on a reduced basis due to short-time work.

International automotive supplier

This customer also set up its own appointment type for short-time work in order to clearly see in the calendar and in the capacity forecast which employees were affected in which period. The hourly model was not used for billing in BCS, as it was imported from a separate system via interfaces. Nevertheless, the configuration enabled valuable internal evaluations of the monthly reduction in capacity.

Small company in the automotive industry (approx. 20–25 employees)

This company is currently relying on scenario A – the adjustment of target working hours. Since no complex capacity planning is carried out via BCS and much is coordinated internally on a personal basis, this solution is sufficient for the time being. However, it is important for the company to create a daily record of working hours per employee in order to apply for short-time work benefits from the employment agency. Future implementation of these records directly in BCS is planned. Before this happens, the procedural requirements and the suitability of the report templates will be reviewed.

IT consulting company

This is where scenario B comes into play – the target working time model remains unchanged. In addition, a special report has been configured that is automatically generated at the end of each month. This report provides a condensed overview of the task distribution and working hours of the various employees. As a result, all relevant data for the application for short-time work benefits is automatically available in a complete and structured form.

Short-time work is not a sign of weakness, but rather an expression of responsible corporate management in economically challenging times. Those who plan early, communicate transparently, and document the necessary processes clearly build trust—both among employees and with the authorities.

Digital tools such as Projektron BCS help companies master this balancing act: They enable transparent planning of reduced working hours, audit-proof documentation, and efficient billing with the employment agency. As a result, short-time work does not become an administrative burden, but rather a controllable and fair instrument that secures jobs and maintains the ability to act.

Especially in times of economic uncertainty, structure beats hecticness – and transparency creates stability.