Context:
- The govt have unveiled various measures to address such concerns due to CoVid-19.
- One of the scheme is Kurzarbeit.
Kurzarbeit Scheme:
- The policy provides for a short-time work allowance, called kurzarbeitgeld, which partially compensates for lost earnings during uncertain economic situations.
- Kurzarbeit is German for “short-work”.
- The policy was rolled out during the 2008 economic crisis & World War I.
How it works?
- When companies face a loss of earnings due to unforeseen economic situations, they often need to cut back on their working hours or send some of their employees’ home.
- It aims to address workers who are impacted by the loss of income due to shortened work hours during such times.
- They can apply for short-term work benefits under the scheme, with the government stepping in to pay employees a part of their lost income.
Benefits:
- This scheme helps the companies retain their employees instead of laying them off, and allows the latter to sustain themselves for a period of up to 12 months.
