Europe's news in English

COPY LINK

LUFTHANSA

Lufthansa puts 31,000 workers on shorter hours until September

German airline giant Lufthansa said Friday it would apply for government aid to place 31,000 workers on shorter hours until September, with carriers worldwide among the companies hardest hit by the coronavirus crisis.

Published: 27 March 2020 14:38 CET

Lufthansa puts 31,000 workers on shorter hours until September

Photo: DPA

The group “has applied for shorter hours for cabin and ground crew until 31
August” at its flagship airline, spokesman Jörg Waber told AFP.

“A solution is on the way for cockpit crew,” he added.

Thirty-one thousand workers represent almost one in four staff at the wider Lufthansa group, which also includes carriers Austrian and Brussels Airlines, Eurowings and Swiss.

Some 700 of Lufthansa's 763 aircraft are “temporarily parked” following massive reductions in its flight operations over the coming weeks.

READ ALSO: 'Exceptional crisis': Lufthansa to slash long-haul flights by up to 90 percent

Chief executive Carsten Spohr last week warned that “the longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid”.

The group's flight plan has been slashed back to levels not seen since the 1950s, Spohr said.

Around the world, the International Air Transport Association has said up to $200 billion could be needed to rescue airlines.

'Kurzarbeit'

Known in German as “Kurzarbeit”, Berlin's support for people placed on shorter hours tops up workers' pay from government coffers.

The scheme is widely credited with preserving thousands of jobs during the
financial crisis in the late 2000s.

Berlin extended access to the scheme as the coronavirus reached Europe's
top economy, allowing companies to apply for support when a threshold of 10
percent of workers is affected, rather than 33 percent as before.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

Reader Question: Can I have a freelance side gig as an employee in Germany?

Whether it’s to try out freelancing or simply to earn a bit of extra money, many people in Germany may have thought about trying out a side gig – or a nebenberufliche Tätigkeit – while they still have a job. It might be an especially attractive option for part-time workers looking to try out a new project as well.

Germany generally allows this, provided that your employment contract doesn’t prohibit it explicitly.

That’s why the first thing you should do if you’re thinking about starting a side hustle is to read your employment contract.

At first, you’re looking to see if side gigs are explicitly prohibited. If there’s no explicit mention of it being prohibited, the next thing to look for is whether you need to seek the company’s permission – possibly through their HR department – to take up your side gig. If you do, this will be explicitly spelled out in your contract.

Once you do that, you need to check and see whether your side gig falls under the Trade Act (Gewerbeordnung). If it does, you will have to apply for the corresponding business license. If it doesn’t, you can be classed as a Freiberufler – or freelancer – and won’t need a special licence to start your business.

You’ll need to do some homework on what kind of business you are – and you’ll need to register with the tax office. Photo: picture alliance/dpa/dpa-tmn | Benjamin Nolte

However in both cases, you will still have to register with your local tax office (Finanzamt).

In Germany, some professions will require you to have a Befähigungsnachweis – “certificate of competence” – proving you have expertise in your area and are appropriately accredited. These include regulated trades like working as a financial advisor or real estate agent.

Other trades, like marketing services and hospitality, won’t need such a certificate, but you might still be classed as a Gewerbe – which brings some different rules with it. Those who belong to the so-called “new self-employed”, such as artists, writers and journalists, are Freiberufler and don’t need a trade licence.

READ ALSO: Everything you need to know about becoming a freelancer in Germany

Do I need extra insurance?

For your job as an employee, you already will have the necessary health, care and pension insurance – with your contributions from your income there getting taken off your payslip.

If you have a side gig, you remain insured through your main job and don’t need to take out additional insurance. Your contributions – based on the income from your main job – will remain the same.

This changes if your side hustle becomes your main hustle – measured by your working hours. As long as the number of working hours you spend on your side hustle amount to less than your main job, you don’t need extra insurance.

In most cases, having a side hustle in Germany won’t impact your health insurance eligibility or contributions. Photo: thirdman /Pexels

The exception to this is if you take on an employee who works more hours than a mini-jobber. Hiring a mini-jobber is still fine.

If your side hustle does become your main hustle and you’re publicly insured, you need to advise your Krankenkasse.

KSK: How creative freelancers can pay less for German health insurance

What income tax do I have to pay?

First up, Germany has a tax class basically designed for second jobs. It’s called Tax Class 6 and it exists alongside your other tax class. That means that the income from your main job will be taxed according to the rules of one of five different tax classes. Which one you belong to in this case depends on family variables like your marital status or whether you’re a single parent.

Tax class 6, however, doesn’t take any of these variables into account and exists only for your side income. As such, your main employment income will never be taxed according to tax class 6 and your side income won’t receive the breaks and credits that your main income will if you normally belong to a tax class that gives you any advantages.

Tax class 6 will apply to any income you earn on your side hustle above €538 a month. Anything you earn up to this amount though is exempt from additional tax.

It’s important to note that if you do earn more than the monthly €538 minimum on your side hustle and thus have income subject to Tax class 6, you’ll need to file a tax return.

EXPLAINED: What German tax class are you in?

Do I have to charge VAT?

If your side hustle is earning you €22,000 a year or less, you can class yourself as a “small firm” or Kleinunternehmer – and you don’t need to charge VAT on your invoices. This is also the case if you earn above this amount but your income is earned abroad or from foreign clients.

If you earn above that amount and work with German clients, then you will need to charge VAT and submit VAT returns to the Finanzamt. There can be advantages in doing this though, as it’s through these returns that you can get VAT back that you spend on legitimate business expenses.

EXPLAINED: What are the best bank accounts in Germany for freelancers?

Url copied to clipboard!