Parliament’s Social Affairs Committee approves introduction of kurzarbeit

The Social Affairs Committee in the lower house of Parliament has approved the introduction of kurzarbeit - an agreement between the state, companies and employees under which firms in financial straits could put workers on part-time work rather than affecting major lay-offs. Employees on part time work would receive 70 percent of their wages with 50 percent paid by their employer and 20 percent covered by the state. The introduction of kurzarbeit was proposed by the government in connection with the economic crisis and the sanctions against Russia which have hurt selected companies. Individual applications for state support would be decided by the government.