Kurzarbeit is a system of support during short-time work that helps employers keep employees on during a period when they cannot assign work due to an external factor – a supply shortfall, a drop in demand, an emergency situation, or restricted operations. The state contributes towards the wage replacement of employees to whom work is not being assigned, so the company does not have to resort to lay-offs, which it would permanently lose once the situation improved. Entitlement arises when conditions relating to the extent of the restriction on activity are met, and it is tied to the insurance system to which employers contribute. The application carries an obligation to maintain the jobs for a set period after the support ends, together with a duty to keep records of obstacles to work. The conditions and the amount of support change over time, so it is worth verifying the current wording directly with the labour office before submitting an application.
See also: Wage subsidy, Agreements Outside an Employment Relationship, Employee turnover and exit costs.
