Short-time Work Compensation (RHT), also known as partial unemployment or technical unemployment, is a measure provided for under the Federal Act on Compulsory Unemployment Insurance and Insolvency Compensation (LACI).
Nature and Conditions of RHT
Short-time work compensation (RHT) refers to a temporary reduction or complete suspension of a company's activity while maintaining the employment relationship. It is generally due to economic factors.
Currently, due to the coronavirus crisis, the Federal Council has taken extraordinary measures to mitigate the economic consequences faced by businesses (see the Ordinance on Measures in the Field of Unemployment Insurance Related to the Coronavirus (COVID-19), hereafter: O-COVID-19 AC).
Among these measures are adjustments to RHT (hereafter: RHT - COVID-19). It is intended for companies experiencing a partial or total reduction in their activity due to COVID-19 and aims to prevent layoffs. It should be noted that this measure does not apply to self-employed individuals.
Conditions for Entitlement to RHT-COVID-19 Benefits:
The usual conditions provided in Article 31 al. 1 LACI remain:
The worker must contribute to the unemployment insurance.
The loss of work must be at least 10% of working hours.
The employment relationship must not have been terminated.
The reduction in working hours must likely be temporary.
The worker’s agreement is necessary (Art. 33 al. 1 let. d LACI).
Under RHT-COVID-19, entitlement to compensation is extended to:
Individuals in a position comparable to that of an employer or who work in their spouse’s or registered partner’s company (Art. 1 and Art. 2 O-COVID-19 AC).
Workers on call (provided they have been employed for 6 months and their activity rate varies by a maximum of 20%) (Art. 8f al. 2 O-COVID-19 AC).
Individuals in temporary employment, apprentices, or those employed by temporary work agencies (Art. 4 O-COVID-19 AC).
Vulnerable individuals, specifically those suffering from high blood pressure, diabetes, cardiovascular diseases, chronic respiratory diseases, cancer, and immune system weaknesses due to illness (provided the employer cannot maintain sufficiently safe working conditions) (Art. 10c of Ordinance 2 on Measures to Combat Coronavirus).
Details of the Benefit:
As provided in Article 34 LACI, the compensation is 80% of the loss of earnings attributable to the lost working hours. (The maximum insurable income is CHF 148,200 per year).
For individuals in a position comparable to that of an employer or for the employer’s spouse or registered partner, a flat-rate compensation of CHF 3,320 is set for full-time employment (Art. 5 O-COVID-19 AC).
RHT compensation is paid for a duration of 6 months, renewable once, potentially extending over 2 years (compensation period).
It should be noted that companies benefiting from RHT must continue to pay the full social insurance contributions as if working hours were normal (100%). The employer is allowed to deduct from the employees' salaries the full amount of the contributions they are responsible for, unless otherwise agreed (Art. 37 let. c LACI).
Procedure:
To provide quick support, the procedure has been simplified.
When an employer intends to request RHT-COVID-19 compensation for their workers, they must submit a request to the unemployment insurance and explain the direct link between COVID-19 and the partial or total reduction in their activity.
The notice period has been removed; however, the employer must still notify the cantonal authority. This can be done by phone but must then be confirmed in writing without delay (Art. 8b O-COVID-19 AC).
Additionally, the waiting period has been removed. This means that companies will be entitled to compensation immediately once they meet the conditions.
If the cantonal office authorizes the payment of the benefit, the employer must submit their full claims for short-time work compensation to the unemployment fund of their choice. The benefits will then be paid to the employer.
If you wish to obtain more information on this matter, Valentin Legal Consultation would be pleased to welcome you to our offices at Rue du Valentin 1, 1004 Lausanne, to answer any questions you may have. We can also be reached by phone at 021 351 30 00 and by email at info@cjdv.ch.
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