Information on short-time working

Information on short-time working
08/2020
Salvatore Fasciana
Update of August 2020 and March 2020 on short-time working compensation.

August 2020 update: short-time working compensation

On 12 August 2020, the Federal Council decided to retain the simplified procedure for the advance notification of short-time working and the summary procedure for the settlement of short-time working compensation (KAE) until the end of December 2020.

Therefore, only the COVID 19 forms are to be used for KAE until 31 December 2020, irrespective of the justification given by KAE.
From 1 September 2020, the maximum duration of short-time work of 3 months applies again. Consequently, all short-time work permits that are older than 3 months at this point in time (i.e. that were granted before 1 June 2020) will lose their validity as of 31 August 2020. The companies concerned that continue to rely on short-time work from 1 September 2020 onwards must submit a new advance notification. This must be submitted to the cantonal office at least 10 days before the start or continuation of short-time work.
Further important information can be found at SECO at https://www.arbeit.swiss/secoalv/de/home/menue/unternehmen/versicherungsleistungen/kurzarbeit-covid-19.html.

If you have any questions, please contact us at any time.

Update: March 2020: Information on short-time working

Below you will find our updated article on the possible introduction of short-time working.
The latest changes are shown underlined.

Who is entitled to benefits?

Employers for employees who

  • have completed compulsory education.
  • but have not yet reached the AHV retirement age
  • are in an employment relationship which has not been terminated.

In addition, the following employees are also entitled to benefits:

  • Employees who are unable to carry out their work as a result of a ban on operations imposed due to the coronavirus.
  • Workers quarantined due to coronavirus
  • Employees who are paid by the hour.

The following employees are also entitled to benefits:

  • Persons with authoritative decision-making powers and their spouses (AHV wage total maximum CHF 3,320.00 for full-time employees)
  • Employees on fixed-term contracts, temporary work and apprentices
  • Employees do not have to reduce their overtime first before they can benefit from short-time work compensation.

Employees who cannot perform their work for personal reasons, such as illness, fear of infection or family obligations (e.g. caring for a family member in case of illness, looking after children when schools or after-school care centres are closed) are not entitled to short-time work compensation (KAE).

Further information on this can be found in the document Compensation for loss of earnings, which was published by the Federal Social Insurance Office FSIO on 20.03.2020.

How much salary must the employer pay for short-time work and what support can he expect?

  • 80% of the loss of earnings must be paid on the payment date (including the contractually agreed regular allowances).
  • The hours worked must be paid at 100%.
  • The unemployment insurance fund subsequently compensates the company for 80% of the lost hours. The employer's contribution to AHV-IV, EO and ALV for the lost hours is reimbursed by the unemployment insurance fund.
  • However, the employer is obliged to pay the social security contributions always on the wage that would have been paid without the short-time work.

How can holidays be taken during short-time work?

  • Holiday cover is possible.
  • However, the holidays must be paid 100% by the employer and cannot be accounted for as short-time work.

Waiting period

  • The waiting days (at the employer's expense) do not apply.
  • The accounting period is one calendar month.

Maximum term of subscription

  • Principle: KAE is paid for a maximum of 12 months within a 2-year period.
  • Companies with a loss of working hours of more than 85% can receive KAE for a maximum of 4 months.

Procedure

  1. Pre-registration apply for short-time work
  • Questions 1-8 must be answered individually.
  • For question 7, it is essential to choose the competent unemployment insurance fund.
  • Summary answers to questions 9a (company's field of activity), 11a (justification) and 11c (postponement of contract deadlines).
    Question 10b (monthly turnover in the last two years) no longer needs to be answered.

In the case of the justification "coronavirus", the pre-notification period is 3 days instead of the usual 10 days.

  • No answer to the remaining questions in paragraphs 9-12.
  • The extract from the commercial register does not have to be submitted.
  • The form "Consent to short-time work" does not have to be submitted, but the employer must confirm in writing in advance that all employees affected by short-time work agree to the introduction of short-time work.
  • The sales figures are no longer required.
  1. Submission
  • By e-mail to rechtsdienst.ava@be.ch
  • By post to the Unemployment Insurance Office, Legal Service, Lagerhausweg 10, 3018 Berne
  1. Apply
  • form must be submitted to the competent unemployment insurance fund within 3 months of the end of the accounting period.
  • The following documents must be submitted with the completed application for short-time work compensation for coronavirus:
  • Payroll for short-time work.
  • Hourly reports must be kept so that the economically induced lost hours can be determined.
  • The details of the target hours, the economically induced lost hours and the wage total must be documented, for example, by suitable documents such as time sheets and payroll journals.
  • Enclosures: operational documentation on the
  • Target hours.
  • economically induced lost hours and
  • to the payroll.
  • There are additional simplifications. The following forms do not need to be enclosed:
  • Settlement of short-time work (form 716.303)
  • Reports on economically induced lost hours (form 716.307)

Further answers are provided by the information on short-time work compensation for employers. In addition, please read the FAQ on compensation for loss of earnings in the event of measures against Corona (short-time work) and the overview of the package of measures to cushion the economic consequences.

Information on short-time working
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