Companies will have to apply digitally for Kurzarbeitergeld (short-time work allowance) once the relevant legislation comes into force. As at 18 August 2026, this requirement does not yet apply because the proposal is still going through the legislative process. There is therefore no confirmed start date yet. Nevertheless, businesses should already review their access, responsibilities and payroll software.

When will companies have to apply digitally for Kurzarbeitergeld?

The requirement is to be introduced through the planned Gesetz zur Modernisierung und Digitalisierung der Arbeitsförderung (Act to Modernise and Digitalise Employment Support). However, it will apply only once the parliamentary process has been completed and the relevant provision comes into force.

According to the Bundesregierung (German federal government), the Bundeskabinett (Federal Cabinet) approved the draft legislation on 15 July 2026. Under the draft, electronic applications will become mandatory for companies. At present, they are just one of several possible submission methods.

According to the information published on 18 August 2026 by the Bundesministerium für Arbeit und Soziales (Federal Ministry of Labour and Social Affairs), the legislation is still going through the legislative process. Its content and the date on which it comes into force may therefore still change.

For companies, this means that paper, email and separate PDF-based processes should no longer be treated as a permanent solution. An immediate change is not yet legally required. However, businesses that may need Kurzarbeit (short-time working) at short notice following a fall in orders should not wait until the first payroll calculation to set up the digital process.

Which digital submission methods does the Bundesagentur für Arbeit offer?

The Bundesagentur für Arbeit (Federal Employment Agency) already provides BA eService, a direct upload service and KEA. KEA is a procedure that transfers data directly from certified payroll software.

With BA eService, companies manage the process through the Bundesagentur für Arbeit’s online service. The upload service allows the required documents to be submitted electronically. Both options may be suitable for businesses that only rarely process short-time work or whose payroll software does not support KEA.

According to the Bundesagentur für Arbeit, KEA automatically submits the application and payroll calculation list. It supports Kurzarbeitergeld, Saison-Kurzarbeitergeld (seasonal short-time work allowance) and Transferkurzarbeitergeld (transfer short-time work allowance). This reduces manual data transfers, but does not remove the need for companies to check their payroll data.

The most suitable method depends on the number of employees, the software in use and how responsibilities are allocated. If payroll is handled by an external payroll provider, companies should clarify in writing who submits the application, who answers questions from the Bundesagentur für Arbeit and who monitors the deadline.

What should businesses check in their payroll software?

The key question is whether the payroll software in use is certified for KEA and supports the current data record. Having a digital payroll system does not automatically mean that data can be submitted via KEA.

According to the Bundesagentur für Arbeit, data record version 1.0.2 has been available since 9 October 2025. According to the same source, the previous data record 7.02 could only be used until 30 June 2026. Businesses should therefore ask their software provider which version is installed and whether an update is required.

You should also check which information needs to be brought together from time recording, staff scheduling and payroll. Typical data includes contracted hours, hours actually worked, periods of absence and pay figures. If this information is currently transferred from several Excel files or handwritten lists, the risk of data entry errors increases.

Digitalising processes to replace paper and Excel can therefore make sense even before a specific case of short-time working arises. The existing process should be documented first. Only then can you decide whether BA eService is sufficient or whether KEA is better suited to the business.

Which deadlines still apply to digital applications?

Digital submission does not change the monthly application deadline. Kurzarbeitergeld must still be applied for separately for each payroll month.

According to the Bundesagentur für Arbeit, the application must be received no later than three months after the end of the relevant payroll month. For a payroll month ending on 30 June, this deadline generally runs until 30 September. Companies should set an earlier internal deadline so that queries or missing data do not cause them to miss the statutory deadline.

The Bundesagentur currently states average processing times of 12 to 16 working days for notifications and 7 to 12 working days for monthly payroll applications. These are average figures, not guaranteed payment periods. Processing may take longer if there are queries or documents are incomplete.

Companies should therefore allow a time buffer in their cash flow planning. Particularly for larger workforces, the amount that the company has to fund in advance can be considerable. The expected reimbursement should not be planned around a fixed payment date.

How can you prepare the digital process in practice?

Start by reviewing access, responsibilities and the internal flow of data. Do not submit a fictitious application. Check only the technical and organisational requirements.

If it is unclear which submission method is right for the business, start by assessing the current situation. Strategic advice on selecting and implementing the first steps can consider software, responsibilities and deadlines together, without introducing a new system prematurely.

ibx company advises small and medium-sized businesses in Hannover and the surrounding region on preparations of this kind. In a no-obligation initial consultation about your current process, you can establish which steps make sense now and which can wait until the legislative process has been completed.