The sanitary crisis that we are experiencing has led to a drastic drop in the volume of activity for numerous companies, and even their complete closure, forcing them to put their employees on partial or full unemployment. Faced with this exceptional situation arising from the Covid-19 pandemic, companies may request indemnities. As regards RWH (RHT) and CSW (APG), we would like to help you understand them better.
[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.
The Reduction of Working Hours (RWH) is a temporary reduction or a complete interruption of the company’s activity due either to a decision on the part of the authorities or for economic reasons.
The RWH engenders the right to compensation over a certain time span (max. 12 months; the decision framework is valid for 6 months in the case of Covid-19*) which is covered by unemployment insurance (AC).
Therefore, 80% of the payroll costs are taken into consideration for employees whose normal working hours are reduced. The goal is to halt redundancies due to decreased activity.
* If the reduction in working hours is greater than 85%, the measure is valid for a maximum of 4 months.
The employer must fulfil the following conditions:
The “classic” beneficiaries, mentioned in Art. 31 LACI, are the employees:
Cross-border employees are also covered by this measure.
Within the framework of the exceptional measures taken by the Confederation due to Covid-19, new categories of employees are eligible to receive indemnities:
The RWH is not valid for:
Each of the eligible employees has the right to refuse the indemnities when RWH occurs; the employer must then continue to pay the employee their full salary. However, this entails an increased risk of future loss of employment for this employee.
There is no obligation for a company to make up the RWH indemnities to 100% (meaning an additional 20%), however it has the right to do so. This has no influence on the unemployment insurance’s decision.
Those employees touched by the RWH measure must be informed and give their agreement with the introduction of reduced working hours. An RWH attestation or an e-mail confirming the employee’s agreement may be good practice.
Although the daily indemnities for RWH cover 80% of the salary, all the social security contributions remain due on 100% of the salary.
Within the framework of Covid-19, it is mandatory to report the hours actually worked.
A control of the hours worked is required to be able to prove the reduction of hours per employee to the SECO [State Secretariat for Economic Affairs] to justify the daily indemnities for RWH.
The compensatory allowance scheme for the reduction of working hours does not give rise to a suspension of the employment contract. The right to vacation days therefore continues during the period that the company receives indemnities for RWH.
N.B.: If an employee takes vacation days during the period in which their company receives indemnities for RWH, it will not receive indemnities for these vacation days. During this vacation time, the employee receives their full salary, as though the compensatory allowance scheme for RHT was not in place.
In order to provide simple and rapid support for employers who are encountering difficulties due to the novel coronavirus, the SECO has simplified the administrative steps linked to the notification of reduced working hours in relation to the coronavirus. A guide and the necessary forms are available by clicking on the following link (in French).
Please note: The Federal Council has abolished the notice and waiting periods.
To find out more: www.travail.swiss
Beneficiaries eligible for loss of income allowance are:
An employee who must assume the care of their child below the age of 12 years may, in principle, be eligible for loss of income indemnities if they fulfil the 2 following conditions:
Indemnities shall also continue to be received during school holidays.
Employees who are quarantined must contact their employer and declare themselves sick.
Please note: an employee quarantined by a doctor is eligible for daily indemnities, limited to 10 days.
Those who are sick or given permission to stay at home by their employer due to their vulnerability are not eligible for an allowance as, in this case, the employer must continue to pay their salary.
The indemnities are defined on the basis of the system of allowances for loss of income and paid in the form of daily indemnities. They correspond to 80% of the salary and are capped at 196 francs per day.
The allowance is not paid automatically. Those eligible must make the request themselves to the competent AVS compensation fund, who will then pay the allowance directly to the individual.
Employees must inform their employer if they have been close to someone who has Covid-19 or if they experience symptoms of the virus (a flu-like state, cough, fever). In any of these cases the employees must stay at home (self-isolation as recommended by the OFSP).
The employer must respect and pass on to their employees and customers the recommendations of the authorities (Federal Office of Public Health (OFSP), Federal Council, the State Council of the Canton involved) as regards hygiene, social distancing, the closure of establishments, etc.
Yes, according to the rules applicable in case of sickness. In the case of Covid-19, the authorities encourage employers to be flexible and require a medical certificate only after 5 to 10 days of absence. The Cantons of Vaud and Geneva require that a medical certificate should not be requested prior to the 10th day of absence.
Sources : SECO, OFAS, TRAVAIL.SWISS https://www.seco.admin.ch/ https://www.bsv.admin.ch/bsv/fr/home/assurances-sociales/eo-msv/grundlagen-und-gesetze/eo-corona.html https://www.arbeit.swiss/secoalv/fr/home/menue/unternehmen.html
In this time of pandemic with its important social, economic and financial impacts, we are at your side to help you and advise you on human resources. Our Caredesk, Payroll and Absences experts are teleworking and can therefore ensure the continuity of our services. They are at your disposal to answer any questions you may have.
Contact our experts by e-mail at: rhinfo@swissriskcare.ch
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