In recent months, the Confederation has taken various measures with the "COVID-19 Ordinance on Unemployment Insurance" to protect as many employers as possible from the economic consequences of COVID-19.
The "COVID-19 Ordinance on Unemployment Insurance" will be repealed as of the end of August 2020, meaning a resumption of many of the normal rules relating to the application of short-time work, i.e. those in force before 1 March 2020.
However, the simplified procedure for applying for short-time work compensation (SWC), which has been in force since March 2020, will continue to apply until the end of 2020. Companies can continue to use simplified COVID-19 forms for pre-registration or settlement. Further, additional working hours will still not have be taken into account until the end of 2020.
To be considered as of 1 September 2020
- The entitlement period is extended to 18 months
- The one-day waiting period is reintroduced
- The simplified procedure for pre-registration and application for compensation will probably remain applicable until the end of 2020 (special COVID-19 forms can still be used)
- Additional working hours still do not first need to be reduced before applying for SWC.
- Leased workers and workers on fixed-term contracts will no longer be entitled to short-time work compensation
- A monthly loss of working hours of more than 85% can only be credited during a maximum of 4 accounting periods
- Employees' income from interim employment will until the end of 2020 not be credited to the short-time working compensation
Regulations already in force since 1 June 2020
- When submitting a pre-registration, a 10-day advance notification period must be observed.
- Once a valid permit for short-time work has expired (e.g. in the case of permits limited to the date of dissolution of the COVID-19 Regulation on unemployment insurance, i.e. 31 August 2020), a new pre-registration must be made to continue short-time work, taking the pre-registration period into account.
- Employees in employer-like positions and apprentices are no longer entitled to compensation for short-time work.
SWC – we answer your common questions
What are the requirements for an application for short-time work compensation?
The loss of working hours must amount to at least 10% of the total working hours of the company or department concerned and must be due to governmental measures or other circumstances for which the employer is not responsible (e.g. loss of working hours due to COVID-19).
Can we apply for short-time work compensation for individual departments in our company?
Short-time work compensation can also be applied only for individual operating departments. An operating department is typically an organizational unit within the company that is under independent management or provides services that could also be provided by independent companies and offered on the market.
For example, a construction site or branch office could be such a department. It is advisable to assess on an individual basis if your unit meets the definition.