Temporary unemployment (economic unemployment)

With insufficient work, your employer can temporarily suspend your contract instead of dismissing you. You then receive a benefit (65 percent of your capped gross pay) plus a mandatory company supplement of at least 2 euros per day, and you remain employed.

How does it work?

Economic unemployment is a temporary suspension of your employment contract due to lack of work. For blue-collar workers the scheme is long-standing and flexible (full or partial suspension, with maximum durations per type); for white-collar staff conditions are stricter: the company must be recognised as in difficulty and there must be a collective agreement or company plan. Your employer must notify the days in advance to the employment office and to you; your union or payroll provider supplies the necessary forms.

What do you earn?

The employment office pays 65 percent of your capped gross pay (so with a ceiling, which means a serious drop for higher wages). On top of that, since 2020 your employer or the sector fund must pay a supplement of at least 2 euros per day; many industrial sectors add considerably more in their agreements. You continue building seniority during the suspension, and the period counts towards holiday rights and pension.

What does it mean for you?

Temporary unemployment is not dismissal: your contract continues and you return to work as soon as there is work again. Still, it is a signal worth reading: structurally low occupancy in a company can point to deeper problems. If you recognise that, feel free to browse our technical vacancies without obligation; most industrial employers are actively hiring. Also see guaranteed pay for the difference with illness.