Press Release Cross-border workers: Double taxation off the table following union protest

Frankfurt am Main – Cross-border commuters in the German-French region will soon no longer face tax disadvantages. Affected employees who were on short-time work can now even hope for retroactive payments in some cases.

One year after a ruling by the Federal Social Court, cross-border commuters in both France and Germany will no longer be subject to double taxation on their short-time work benefits. Federal Labor Minister Hubertus Heil has now confirmed this to the IG Metall union.

Hans-Jürgen Urban, executive board member of IG Metall: “Justice is finally being served for thousands of cross-border commuters. Thanks to successful pressure from IG Metall and cross-border commuter organizations, they can now hope for back payments and legal certainty in the future.”

The reason for the previous injustice is that tax is already factored into German short-time work benefits. However, employees living in France had to pay tax on this income a second time. At a metal and electrical manufacturing company, this cost them up to 20 percent of their short-time work benefits.

Federal Labor Minister Hubertus Heil has now promised IG Metall that the Federal Employment Agency will change this practice. Starting in December, short-time work benefit notices sent to cross-border workers in 2021 and 2022 will be reviewed and corrected.

Affected employees do not need to take any action themselves. They will receive their back pay via their pay stubs. IG Metall members can contact their regional offices for advice.