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Comparison legal structures & employment models during corona crisis

By lmoser, 20. April 2020

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How am I protected for my salary during the corona crisis? A lot of people do ask that question since the government’s decision to close shops, restaurants, etc. We would like to provide a transparent overview with the above table list. What legal structure, employment model does offer what kind of social coverage?

Employees of companies

The employed ones are protected the most in a crisis like corona compared to the other models.

  • Entitlement for short-time work compensation of max. 80% gross CHF 12’350.- per month (only if within an unterminated contract)
  • Entitlement for compensation of loss of earnings (EO)  (only in case of childcare or quarantine days)
  • Entitlement for unemployment benefits if the employer should terminate the contract (contribution time has to be fulfilled)

The employment therefore is crisis proofed and broadly supported and protected by state.

The short-time work compensation can only be applied for a max. salary of CHF 12’350.- per month. Therefore, you would get CHF 9’880.- max (80% of 12’350.-).

Owners of PLC/LLC

Less protected within a crisis are the owners of a PLC or LLC. They are employees of their own company even if they had to pay the full unemployment insurance contributions in the past (UI 2.2%). At the beginning of the crisis the state did not grant them any short-time work entitlement. Later on, the state decided to grant an all-in amount per month of CHF 3’320.-. This guarantee is only temporary during the corona crisis, no one knows how the future entitlement in a further state crisis will look like.

In comparison, an employee receives max. CHF 9’880.-  (80% of 12’350.- per month).

  • Entitlement for short-time work compensation is limited to net CHF 3’320.-  per month
  • Entitlement for compensation of loss of earnings (EO)  (only in case of childcare or quarantine days)
  • Entitlement for unemployment benefits is only given when the own company will be liquidated or the owner did leave the company as well as the supervisory board

Self-employed (sole-proprietors)

Completely different is the case for the sole-proprietors. A self-employed person who was accepted as such by the OASI, never has paid any unemployment insurance contribution in the past and therefore normally has not entitlement to government support and UI compensation. In succession of corona the state granted them the entitlement for a compensation of loss of earnings.

  • No entitlement for short-time work compensation is given
  • Entitlement for compensation of loss of earnings backwards to the 17.03.2020 for a max. of CHF 196.- per day and CHF 5’880.- gross per month. Requirement for the compensation is a OASI income between CHF 10’000-90’000 in 2019 year. If the self-employed person earned more than CHF 90’000, no entitlement and support by the state is given.  If there is no income statement of 2019, there will be a temporary order. This entitlement actually is valid till the 17.05.2020. Sole-proprietors which have to have a closed shop or are subjected to the restriction of the prohibition of events beyond 17.05.2020, are entitled further for the compensation.
  • Entitlement for unemployment benefits are not given as no contributions have been done in the past

“Self-employed” without the OASI-confirmation

A lot of  «self-employed» persons in Switzerland do not have a legal entity and are not properly registered with the authorities as self-employed. Therefore they do not contribute to the social institutions. It is irrelevant if they do that because a lack of knowledge, non-compliance or intention (illegal work).

These group of “self-employed” can not expect any governmental support in case of a crisis nor in case of accident, illness or disability.

The only thing left,  the walk to the social welfare office and private insolvency.

  • No entitlement for short-time work compensation is given
  • No entitlement for compensation of loss of earnings (EO)
  • Entitlement for unemployment benefits are not given as no contributions have been done in the past

In order to get a social protection in the future, they may use the employment models of PayrollPlus in the future. Invoicing through the unique online tool or a contract within staff leasing offers a broad range of protection. No matter which employment model is chosen, PayrollPlus takes care of the salary payment and they are on boarded to our collective insurance agreements.

Employment models of PayrollPlus

Since 30 year we are concerned with questions about flex work, contract, work law, etc. and added two new and innovative employment models to our offering.

We provide valuable alternatives to the own company and self-employment including the long called social protection.

No matter which of the three employment model you choose, staff leasing, PayrollPlusSmart or PayrollPlusFlex:

  • PayrollPlus pays the salary and the OASI-, social contributions
  • Instant acceptance into the insurances (accident, daily sickness allowance and pension fund) of PayrollPlus
  • Hourly-, daily-, monthly- or fixed rate is possible

Staff leasing

For freelancers and corporates, which use the conventional staff leasing model for the external staff.
The degree of work and the salary needs to be guaranteed and it has to be adhered to the staff leasing law (AVG).

Der Personalverleih existiert seit 1989. Im Zusammenhang mit der Corona-Krise eröffnete der Bund vorübergehend ebenfalls für Temporäre- und Personalverleihfirmen die Möglichkeit, die Mitarbeitenden für Kurzarbeit anzumelden.

  • Entitlement for short-time work compensation of max. 80% gross CHF 12’350.- per month (only if within an unterminated contract)
  • Entitlement for compensation of loss of earnings (EO)  (only in case of childcare or quarantine days)
  • Entitlement for unemployment benefits if the employer/staff leaser should terminate the contract (contribution time has to be fulfilled)

PayrollPlusSmart

For SMEsprivate household and Start-ups, which want to minimize their salary administration efforts and are looking for an easy all-in-one solution.

As the salary payments are transferred from our bank account, all the staff is automatically on-boarded (irrespective of its age) to our collective insurance agreements (daily sickness allowance, accident insurance, pension fund). On top PayrollPlus manages the OASI- declaration and all personnel administration needs.

You conclude the work contract directly with your staff. In a special agreement you instruct PayrollPlus with the management of the salary payments for your staff.

This employment model is crisis proofed. Employer and employee can count on normal compensation as given for employment.

  • Entitlement for short-time work compensation of max. 80% gross CHF 12’350.- per month (only if within an unterminated contract)
  • Entitlement for compensation of loss of earnings (EO)  (only in case of childcare or quarantine days)
  • Entitlement for unemployment benefits if the employer should terminate the contract (contribution time has to be fulfilled)

PayrollPlusFlex

For freelancers, who work commission based and are looking for an easy solution to invoice their clients and for corporates, which do not want to take the risk of freelancers or contractors being false self-employed.

Die Rechnungsstellung erfolgt vom Freelancer über das Onlinetool von PayrollPlus. Unternehmen können die Rechnungen sorgenfrei begleichen, da PayrollPlus AG (juristische Person) der Rechnungssteller ist und somit nie die Gefahr besteht, dass das Unternehmen zum Arbeitgeber wird oder eine Scheinselbständigkeit vorliegt.

Due to his flexibility this employment model is only limited proofed in times of crisis.

  • Entitlement for short-time work can only be applied for with fulfillment of special criterias (for salary received through PayrollPlus for the past 6 months)
  • Entitlement for compensation of loss of earnings (EO)  (only in case of childcare or quarantine days)
  • Entitlement for unemployment support is only given when certain criterias are met (for ex. contribution time has been give for the unemployment office)

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