COVID19: Compensation for short-time work

The introduction of short-time work is intended to compensate for temporary decreases in workload and to preserve jobs. With the short-time work compensation, the unemployment insurance offers employers an alternative to threatened terminations.

If the monthly off hours amount to more than 10% of the contractual target time, employers are entitled to short-time work compensation. This applies to both permanent and fixed-term employment relationships. Employees must be in an employment relationship without notice of termination.

In addition, the following administrative simplifications were introduced:

1. no need to compensate overtime first
2. business owners can apply for compensation in the amount of CHF 3'320
3. no waiting period / waiting days
4. the 10-day period for pre-notification has been cancelled
5. signed declaration of agreement of the employees no longer has to be submitted with the pre-registration (employees must still agree)

https://www.seco.admin.ch/seco/de/home/Arbeit/neues_coronavirus/kurzarbeit.html

Compensation for employers and employees

In contrast to unemployment compensation, benefits are paid to employers. However, all employees have the right to refuse short-time work compensation. Employers must continue to pay these employees their full salaries.

The short-time work compensation is limited to a gross salary of CHF 12,350 per month. The application for short-time work compensation must be submitted to the local employment office.

https://www.arbeit.swiss/secoalv/de/home/menue/unternehmen.html

Short-time work compensation for self-employed individuals

The compensation amounts to 80 percent of the average income liable to AHV/ALV that was earned before the start of compensation, up to a maximum of CHF 196 per day. The maximum daily allowance is paid for an average monthly salary of CHF 7350 or more. This special measure compensates self-employed persons who are directly affected by the lockdown (e.g. restaurants, bars, etc.)

Those entitled to compensation must apply to the competent compensation fund for the compensation. The latter will then transfer the compensation directly to the person concerned. The application can be made using the following link:

https://form.ahv-iv.ch/orbeon/fr/AHV-IV/318_758_vers_20-03-2020/new

Self-employed persons who suffer a loss of earnings due to official measures shall be compensated, unless compensation or insurance benefits already exist. Such loss of earnings could be, for example:

• parents with children under 12 years of age who have to interrupt their employment because the care of their children is no longer guaranteed;
• persons who have to interrupt their employment because of a quarantine measures
• self-employed persons who suffer a loss of earnings due to the closure of a business or a ban on events ordered by federal law;
• self-employed cultural workers whose engagement was cancelled due to measures to combat coronavirus or who had to cancel an event of their own.

Conclusion & practice experience

Our experience has shown that the application for short-time work compensation is approved promptly and without complications. This allows affected companies to react quickly and flexibly to the decline in workload.

If you have any questions about short-time working compensation, our team will be glad to help you at any time.