New information on short-time work in connection with the Corona-Crisis

In the view of the Federal Council, the epidemiological situation in Switzerland is stabilizing at a high level. In addition, the numbers have been rising again in recent days. As a result, the Federal Council has announced further restrictions for Switzerland. Thus, from an economic perspective, there is still no sign of improvement. Among other things, this puts short-time work and its continuation in the new year once again in the foreground. This article explains the updated regulations on short-time work and lists possible points of contact.

The Federal Council’s amended short-time work regulations concerning the simplified prior notification procedure and the summary settlement procedure for short-time work compensation will lose their legal force on 31 December 2020. This means that from 1 January 2021 there will still be an entitlement to short-time work, but the advance notification will be handled differently. The justification for short-time work in the advance notification must be formulated more extensively from the new year. Where up to now a mere prima facie case was sufficient as justification, a much more detailed and adequate causal connection to the coronavirus or to the closures triggered by the virus must now be justified. In addition, the general scope of the justification will increase.

Already on 1 September 2020, a large part of the extraordinary restrictions in Switzerland were lifted. This was also followed by a return to the old regulation of short-time work. This means that the maximum authorisation period for short-time work was reduced again to three months. However, the maximum period of entitlement to short-time work compensation is now 18 months and the maximum period of entitlement to short-time work compensation in the event of a loss of more than 85% of working hours is four months. In addition, on 1 September 2020, the Federal Council reduced the regular waiting period from two to three days to one day. This means that the wage costs for one day per month must be borne by the employee. Furthermore, existing overtime must also be reduced from January 2020 before short-time work can be drawn.

Furthermore, employee consent is required for the advance notification of short-time work, and a ten-day advance notification period applies for the application of short-time work.

The following section explains how and under what conditions short-time work compensation can be applied for.

It is possible to claim short-time work compensation under the following conditions:

• The loss of work has occurred due to official measures
• The loss of work is unavoidable for economic reasons
• The loss of work was caused by a decline in demand or turnover due to economic or structural reasons.

Further requirements for the application are

• An employment relationship that has not been terminated
• The work stoppage is temporary
• Jobs can be maintained through short-time work
• Controllable working time
• The loss of working hours accounts for at least 10% of the working hours per accounting period.
• The loss of working hours cannot be justified on the basis of normal operating risk

As mentioned above, short-time compensation is paid after a one-day waiting period. Short-time work compensation amounts to 80% of the loss of earnings attributable to the lost working hours. Short-time allowance is always paid in the following month. The employee must be paid 80% of the loss of earnings as wages; this must be done properly and on time. In addition, social security contributions must be paid on the full wage. The employer’s contributions are reimbursed by the short-time allowance.

In the appendix you will find important links for applying for short-time work as well as to further information that you can consult if necessary.

Application for short-time work, Canton St. Gallen: 

https://www.sg.ch/wirtschaft-arbeit/arbeitgebende/kurzarbeit-anmelden.html

Contact point, Canton of St. Gallen:

Office for Economy and Labour

Davidstrasse 35

9001 St.Gallen

+41 58 229 48 85

info.vdawa@sg.ch

Contact point, Canton of Zurich:

Office for Economy and Labour

Stampfenbachstrasse 32, 8090 Zurich

Information on short-time work in general: 

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

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