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.
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