Thanks to the short-time working compensation, unemployment insurance (UI) covers employers affected by short-time working for a proportion of their salary costs and offers an alternative to the risk of redundancies.
Definition
Short-time working refers to a temporary reduction or complete suspension of work at a company, whereby the contractual employment relationship remains in place. This is usually for financial reasons.
Purpose
Unemployment insurance (UI) covers employers affected by short-time working for a proportion of their salary costs for a certain period. The aim is to prevent redundancies being announced as a result of unavoidable, short-term work stoppages.
In contrast to unemployment benefits, the benefits are paid to the employer. However, each employee has the right to not accept the short-term working compensation. The employer must continue to pay these employees their full salaries. However, there is then an increased risk of employees being made redundant.
Procedure
- The employer must submit an application for short-time working. He/She must submit an advance notification to the responsible cantonal employment office.
- If the cantonal employment office authorises the short-time working, the employer must submit the additional applications to the selected fund. The fund checks the application requirements in detail and in the event of a positive decision, it then reimburses the short-time working compensation.
Amount
The short-time working compensation is paid to the employer after the waiting period. It amounts to 80% of the loss of earnings attributable to the reduction in working hours. With short-time working compensation, the UI also reimburses the employer contributions for OASI/UI/LE/UI.
Duration
On June 19, 2024, the Federal Council decided to extend the maximum duration for receiving short-time working compensation from 12 to 18 months. The amendment to the ordinance will come into force on August 1, 2024, and remain in force until July 31, 2025.
The website Work.swiss offers further information on this subject.
Source: www.work.swiss
