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Covid-19: Understanding Reduced Working Hours (RWH-RHT) and Compensation for Short-time Work (CSW-APG)
[Warning to readers] As the times we are living in are totally unprecedented, it is possible that certain information given here will be modified in accordance with measures taken by the authorities to answer the economic crisis. They will therefore be updated on a regular basis.
Reduced Working Hours (RWH) and Covid-19
What is RWH?
What conditions must the employer fulfil?
- The reduction must be due to economic reasons
- The loss of work is not due to corporate risk
- The loss must be at least 10% of the total hours normally worked in the company – an average of the whole company
- The reduction must be temporary
- The employment contract has not been cancelled
- The working hours must be controllable (a record kept of the hours worked)
Who is entitled to daily indemnities (IJ) for reduced working hours (RWH-RHT)?
- Whose normal working hours have been reduced or suspended
- Who have the obligation to contribute to the UI (AC) or have not yet reached the minimum age for contributing to the AVS
- Whose employment has not been terminated
- Apprentices under the age of 18 years, even if they have not yet reached the minimum age for contributing to the AVS.
- Business leaders: those who determine or have considerable influence over the decisions taken by the employer. N.B. for these persons, the RWH shall be calculated on the basis of a determining flat-rate monthly wage of a maximum of 3320 francs for full-time employment.
- Employees with a fixed-term contract and temporary employees (on assignment for a temporary employment agency)
Which categories are excluded from the RWH (RHT) procedure?
- Employees whose employment contracts have been terminated
- Employees absent with a medical certificate (who are covered by loss of earnings insurance)
- Employees who have reached retirement age (64/65 years old)
- Employees who do not accept the reduction in working hours
- Employees on maternity leave
- Employees on holiday
- Employees without a childcare solution: Cf. following § “Allowance for loss of earnings and Covid-19”
- Employees with an on-call contract
Can staff members eligible for RWH refuse to accept the daily RWH indemnities?
Is the company obligated to make up the salary to 100%?
Must the employer provide proof of the employee’s agreement?
What about social security payments?
Which hours must be reported?
Why is accounting for the hours actually worked compulsory?
Does the period of RWH entail a right to vacation days?
How should RWT (RHT) be declared and a request for indemnities submitted?
Some points to verify
- Correctly establish to causal connection between Covid-19 and the impact on the company in the notification
- Make no mistakes in the calculation bases
- It is compulsory to maintain an accounting of all the hours worked by each employee
- Send the request for reimbursement within a period of 3 months maximum, without which no indemnities may be claimed
Allowance for loss of income and Covid-19
Who is eligible for the loss of income for sickness allowance?
- The parents of children under the age of 12 who must give up their gainful employment because their children’s care can no longer be assumed by a third party (for further details, cf. the following question)
- Those who are placed in quarantine and must therefore give up their gainful employment (for further details, cf. the following question)
- Those who are self-employed and who suffer a loss of revenue (closure of their company or a ban on events ordered by the Federal Council).
- Employees who receive compensation for reduced working hours are not eligible to receive this allowance in addition.
Does an employee who must take care of their child also qualify for a loss of earnings allowance?
- They have no other solution for the care of their child: care by a third party (nursery, schools, grandparents who are over 65 years old and considered vulnerable, etc.) is no longer possible or authorized.
- Teleworking is not possible: being able to work from home does not engender a loss of income a priori. If there is a loss of income, it must be proved by a written attestation from the employer, for example.