Short-time work: Frequently asked questions and answers
Following the lockdown in Switzerland, many companies are faced with the question: short-time work or not? We have compiled some important questions and answers here.
The exceptional situation proclaimed by the Federal Council has an existential impact on many SMEs. The instrument of short-time work is provided for economically induced work stoppages - including those due to official measures.
What is the purpose of short-time work?
Short-time work is intended to prevent a company from having to continue to employ its employees rather than lay them off in the event of an economic emergency that is not the employer's own fault. Mass unemployment can thus be avoided in the medium term. Employees thus also retain social protection and gaps in contributions to the occupational pension scheme are avoided. Employers have the advantage that they can use short-time work to save on the costs of staff turnover and ensure the availability of their employees.
When may short-time work be applied for?
If a company has to introduce short-time work, the canton must be notified at least 10 days before the start of the short-time work. Due to current events, this deadline has now been shortened to 3 days. The canton then checks the legality of the request.
Who may apply for short-time work?
The application is made by the employer. Employees do not have to do anything themselves, but must usually sign a declaration of consent.
When is there no entitlement to short-time working compensation?
Short-time work does not include work stoppages that are not temporary. Also, work absences that are part of the normal operating risk or are necessary for operational reasons (such as interruptions to operations due to repair work, conversions, cleaning work or similar). Seasonal fluctuations in employment are also not eligible.
Temporary employees (who continue to receive full pay) or those in a terminated employment relationship are also not eligible. Owners, partners or other persons with a financial interest in the company are also not entitled to short-time working compensation.
Where do you have to report?
The relevant cantonal offices are the points of contact; as a rule, these are affiliated with the respective cantonal Directorate of Economic Affairs.
How much is the short-time compensation?
Compensation is based on the amount of the employer's reduced workload. Thus, if a 100 percent position is reduced to 50 percent, the short-time compensation amounts to 80 percent of the lost salary (Calculation example). The AHV/IV/ALV/EO contributions continue to be paid equally by the employer and the employee; the insured salary is decisive.
If you fall ill during short-time working: What salary does the daily sickness benefits insurance pay?
If an employee becomes ill during the reduced workload, the daily sickness benefits insurers have different regulations. In most cases, benefits are based on the reduced salary plus the lost compensation from unemployment insurance. Information on this can be found in the GCI of the daily sickness benefit insurer.
Further information is available here
