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Can I change my US colleagues to short-time work because of the Covid-19?
H. Roske & Associates LLP, March 23rd, 2020.
The attorney answer most hated is "it depends". Nevertheless, unfortunately it does matter here, because the answer depends on the type of employment contract. Many Americans, including executives, have no written contracts at all. A comparable high number have a so-called "at will" employment contracts. This is a written agreement (employment contract), but it does not specify a notice period. This, combined with the fact that no reason for termination is required in the USA, means that the employee can be dismissed overnight. True to the old advocate's motto "Argumentum a Maiore ad Minus", in both these cases it is possible to switch to short-time working unilaterally. This is the minus compared to the dismissal, i.e. if I may already give notice, then I definitely can pay even less and order short-time work.
If the employment contract has a notice period -- often 3 to 6 months for managers -- then I can only order short-time work after the same short-time work has expired.
An amicable, written agreement, which takes into account the Covid 19 circumstances, is possible in all 3 cases.
If the employment contract has a notice period -- often 3 to 6 months for managers -- then I can only order short-time work after the same short-time work has expired.
An amicable, written agreement, which takes into account the Covid 19 circumstances, is possible in all 3 cases.