Post no longer relevant due to relaxation of COVID measures, but still relevant for issues related to the past.
The rapid spread of the novel coronavirus has a strong impact on the profitability of numerous companies. From an employer perspective, measures to ensure the continuity of the company should be considered. One possibility is the implementation of short-time work. For this purpose, short-time work can be applied for with the cantonal employment office. If the conditions are met, the cantonal employment office gives its approval and the company can submit an application for short-time work compensation to the unemployment insurance fund. Cantonal employment offices have already issued numerous permits.
The temporary introduction of short-time work serves to compensate slumps in workforce numbers and to preserve jobs. In addition, the social security protection of employees during the period of short-time work and the avoidance of gaps in contribution towards the pension funds are guaranteed.
Employees whose regular working hours are reduced or completely suspended are entitled to short-time working compensation if:
- the employees are subject to OASI contributions or have not yet reached the minimum age for the obligation to contribute to the OASI;
- the employees are employed in a non-terminated employment contract;
- the stoppage is likely to be temporary and their jobs can be maintained through short-time work;
- the stoppage is eligible.
The stoppage is considered eligible if it is due to economic reasons and is unavoidable and amounts to one tenth of the total working hours which the employees would normally work under normal circumstances.
Employees are free to refuse short-time work and demand full pay instead. However, this may increase the risk of dismissal.
In connection with the coronavirus, the Federal Council decided in March 2020 on changes and simplifications with regard to the conditions for payment of the short-time working compensation ("STWC") and its settlement. The situation regarding STWC was therefore legally completely different than it is under other circumstances. Originally, these changes were only intended to apply until 31 August 2020. Now, the Federal Council decided to maintain some of the simplifications until 31 December 2020. The following points provide an overview of what needs to be considered from 1 September 2020:
- The time limit for pre-notification was reintroduced on 1 June 2020. Hence, the employer must notify the STWC at least ten (10) calendar days prior to the start of the intended use.
- The framework period for insured persons who were entitled to a maximum of 120 additional daily allowances between 1 March and 31 August 2020 will be extended by a maximum of six months.
- The approval period for short-time work will again be three months instead of six months.
- The justification for short-time work can be kept shorter in the pre-notification (however, "coronavirus" alone is not sufficient).
- The accounting for STWC remains simplified and is carried out in a summary procedure.
- The waiting period for the purchase of STWC (deductible of the company) is no longer abolished but is reduced from three to one day.
- The entitlement to STWC no longer applies to persons in temporary employment and persons in the services of an organization for temporary work.
- Employees on call who have been working for at least six months for an indefinite period of time at the company that is applying for short-time work are entitled to STWC. This modification was put into force by the Federal Council on 28 October 2020, with retroactive effect from 1 September 2020.
- For apprenticeship trainers who are responsible for the training of the apprentices, STWC can be applied for.
- The existing overtime of the previous six months must not be reduced before the STWC is obtained.
- The maximum period of entitlement to STWC for an 85% loss of working hours of four months will apply again, but accounting periods between 1 March 2020 and 31 August 2020 will not be taken into account.
- Intermediate employment is still not added towards the STWC.
- The maximum period for which STWC can be paid is extended from twelve to eighteen months.
The changes will apply from 1 September 2020. The majority of the changes, in particular the simplified registration and billing procedure, will remain in force until 31 December 2020. The amendment for on-call employees will remain in force until 30 June 2021 while some of the other changes will remain in force until 31 December 2022.
Our team of employment law experts will be happy to assist you in all clarifications in connection of short-time work. For all other concerns arising from the coronavirus from an employment law perspective, we would like to refer you to our magazin article "Coronavirus", which provides answers to numerous questions from the employer and employee perspective as well as to the FAQs on the subject of quarantine.
Further important information on the subject of short-time work can be found, for example, on arbeit.swiss and on the websites of the individual cantonal offices. Please note that the normally relevant sources of information "AVIG-Praxis KAE" and Seco's information sheet "short-time working compensation" are not adapted to the specific circumstances of the Corona crisis and therefore do not contain all the latest information.
