Has your employer filed for short-time work on your behalf due to an acute economic crisis, but you’re not sure exactly what this means for you financially? Here, we’ll summarize the most important facts and try to explain briefly and simply how short-time work works.
What is short-time work compensation?
If a business finds itself in financial distress through no fault of its own, it may temporarily reduce its employees’ working hours or suspend operations entirely. If the loss of work exceeds 10%, this is referred to as short-time work. The primary goal of this measure is to secure and preserve jobs during times of crisis. In this way, your employer aims to secure your job for the future.
How much will I still be paid?
Short-time work compensation amounts to 80% of your regular salary, with the insurable wage capped at CHF 12,350 per month.
With regard to the extent of reduced working hours, the question arises as to whether—and, if so, how much—you can still work for your company, or, alternatively, how many hours you have lost that are directly related to the economic crisis.
100% loss of work
You are no longer able to work at all and are therefore on 100% short-time work. Your employer receives 80% of your gross salary from the compensation fund as short-time work compensation. Accordingly, you are entitled to 80% of your contractually agreed gross salary (minus the agreed social security deductions).
Loss of work less than 100%
Assuming that you can continue to work 2 days per week (40%), your employer will register you for 60% short-time work. Your gross pay will therefore consist of 40% of your regular salary and 60% short-time work compensation (which amounts to 80% of your contractually agreed-upon gross pay).
Example: A monthly salary of CHF 5,500 at 100%; 40% of that—CHF 2,200—is your regular salary, and for the remaining 60%—CHF 3,300—you receive 80% as short-time work compensation, amounting to CHF 2,640.
If your regular gross wage is CHF 5,500, it amounts to CHF 4,840 (2,200 + 2,640) in the case of 60% short-time work.
Social security deductions and insurance premiums based on 100% of wages
Total social security deductions (AHV, IV, ALV) of 6.375% and insurance premiums (pension fund, KTG, UVG) are payable on your regular salary and are therefore deducted in full despite the pay cut.
Can I quit my job while I’m on short-time work?
Yes, you may do so; however, please note that even in the event of reduced working hours, the notice period specified in your contract must be observed. During the notice period, you are not entitled to receive reduced working hours compensation; therefore, your employer is obligated to pay you your regular wages.
Can my employer register me for short-time work against my will?
No, you must agree to the reduced work schedule. However, we advise you to talk to your employer; in times of crisis, it is important to fully understand the company’s situation and the circumstances. As a more severe consequence, your employer could even terminate your employment, but that would not help either you or your employer.