COVID-19: Update on Swiss short-time working compensation (valid as of 1 June 2020)
The respective measures in place served to mitigate the negative effects the current pandemic and the official bans and orders under the Swiss Epidemics Act had on Swiss businesses. They contributed to safeguard jobs and income and guaranteed that affected businesses were helped in a non-bureaucratic way. With the current easement of economic restrictions, the Swiss Government ruled that these measures should also be gradually lifted.
The Swiss Government has decided in its meeting of 20 May 2020 on a gradual discontinuation from the COVID-19 short-time work compensation scheme.
From 1 June 2020, the following applies:
- Persons in an employer-like position as well as their spouse/partner will no longer be entitled to short-time work compensation.
- Apprentices will as well cease to be eligible for short-time work compensation.
- The notification period of 10 days will be re-established. This applies only to new requests but not to companies already in possession of a valid pre-notification. For new pre-notifications, the form has to be handed in 10 days before the date as of which short-time work compensation is applied for.
All other measures by the provisions of the COVID-19 Ordinance "Unemployment Insurance" (e.g. the eligibly of fixed-term, on call and temporary employees) will expire by 31 August 2020.
In addition, the Swiss Government has decided to submit to the Swiss Parliament a proposal for an extraordinary supplementary credit of CHF 14.2bn. This credit will cover the cost of short-time work compensation of the current year. Without the additional financing, it is estimated that the unemployment insurance will have debts of over CHF 16bn due to increase in short-time work.
The measures implemented in the course of the COVID-19 pandemic were always intended as preliminary. Thus, with businesses and facilities opening, it is justified that certain measures will be lifted. Nevertheless, companies can still benefit from short-term work where necessary.
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