Short-time working compensation (KAE COVID-19)
On 12 August 2020, the Federal Council decided to retain the simplified procedure for the advance notification of short-time work and the summary procedure for the settlement of short-time working compensation (KAE) until the end of December 2020. Therefore, until 31 December 2020, only the "Process KAE COVID-19" will apply to the settlement of KAE and only the "COVID-19 forms" will be used for KAE, regardless of the justification of KAE.
- From 1 September 2020, the majority of the extraordinary measures (expansion of the stakeholder groups, additional financial relief for companies) will cease to apply and there will be a return to the original system of KAE.
- From 1 September 2020, the maximum duration of short-time work will be limited to three months. Consequently, permits that are more than three months old at this point in time will lose their validity. Companies that are still dependent on short-time work as of 1 September 2020 must submit a new advance notification of short-time work (observe the 10-day advance notification period).
- The simplified procedure for advance notification and the summary procedure for settlement will continue to apply until the end of December 2020.
In addition, on 26 August 2020 the Federal Council decided on the following adjustments to the Unemployment Insurance Ordinance (AVIV):
- The additional hours accumulated outside the short-time work phase will still not need to be deducted.
- Income from interim employment will still not be deducted from short-time working compensation.
These regulations apply until the end of 2020.
On 28 October 2020, the Federal Council decided to amend the COVID-19 Ordinance on Unemployment Insurance. The amendment means that employees on call are entitled to short-time working compensation under certain conditions. The amendment takes effect retroactively as of 1 September 2020. The regulation provides for an entitlement to short-time working compensation for employees on call who have been employed for at least 6 months on a permanent contract or on a fixed-term contract with a contractual termination option. The changes will come into force retroactively as of 1 September 2020. They ensure that those affected are now entitled without interruption since March 2020. They are entitled until 30 June 2021.
During its meeting on 18 November 2020, the Federal Council decided to propose that the winter session of Parliament urgently debate ad hoc adjustments to the COVID-19 Act. This would enable a swifter reaction to ongoing developments during the second wave of the COVID-19 pandemic. The proposal includes that short-time working compensation payments should be extended. To secure jobs and avoid COVID-related redundancies, a renewed, targeted expansion of unemployment benefits should take place in the area of short-time working compensation. A number of the unemployment insurance-related measures introduced in spring under emergency law should be transferred into the COVID-19 Act. In particular, the entitlement to short-time working compensation should be extended to cover fixed-term employment relationships, and the grace period should be abolished.
Applying for short-time work
Step 1: Pre-registration Cantonal Office for Unemployment Insurance (KAST)
Please submit the following form "Voranmeldung zur Kurzarbeit" (Pre-registration for short-time work” – only available in German) by mail (see contact box on the right) or by e-mail to KAST, firstname.lastname@example.org. KAST will then review your application and inform you of the decision in writing.
Step 2: Applying to the Public Unemployment Fund (OeAK)
To do so, please use the forms attached at the end of this paragraph and send them by e-mail to email@example.com. For each subsequent month, please resubmit the relevant application form to OeAK.
“Antrag und Abrechnung von Kurzarbeitsentschädigung - Abrechnungsperioden März bis August 2020” (Application and Settlement of Short-Time Working Compensation - Accounting Periods March to August 2020 – only available in German)
“Antrag und Abrechnung von Kurzarbeitsentschädigung - Abrechnungsperioden September bis Dezember 2020” (Application and Settlement of Short-Time Working Compensation - Accounting Periods September to December 2020 – only available in German)
The OeAK will do its utmost to transfer the compensation you are entitled to as soon as possible to the payment details you have provided.
New: Online forms for short-time working compensation
With immediate effect it the Covid-19 advance notification of short-time work and the application for short-time working compensation can be submitted online.
Please note that…
- the monthly application must be submitted within three months; otherwise the claim will be forfeited.
- your account details are correct.
- you sign the application.
- the required enclosures are attached to the application.
- the current payment is an advance payment. This means that we will make the final settlement at a later date and then make any subsequent payments or reclaims. If we are missing documents or information for the final settlement, we will get in touch with you. At present, our priority is ensuring that the companies applying for financial support receive appropriate financial support as quickly as possible. We would very much appreciate your administrative support if you submitted your application by post.
- the unemployment insurance funds will only settle short-time work compensation with the simplified COVID form until 31 December 2020. You will find them on the SECO website: www.arbeit.swiss (Forms - short-time working compensation: Geltendmachung bei der Kasse (German) – Exercice du droit auprès de la caisse (French) – Esercizio del diritto presso la cassa (Italian)