What is Kurzarbeit?
Kurzarbeit (short-time work) allows businesses to reduce working hours during a temporary loss of work instead of laying people off. Kurzarbeitergeld (short-time work allowance) partly compensates for the lost earnings.
Kurzarbeitergeld is generally 60% (67% with a child) of the lost net pay and is calculated and paid out through the employer.
In practice
When work falls away at a company, working hours are cut by 50%; for the lost hours the employees receive Kurzarbeitergeld through the payslip.