Further details of short-time work after 11 May 2020

Closed businesses may also continue to receive short-time work compensation – under certain circumstances.

The Federal Council has confirmed that it will still be possible to receive short-time work compensation from 11 May 2020 onwards even if a business remains closed. The following must be noted:

Based on the principle of damage mitigation, any company applying for short-time work compensation for its employees must be able to demonstrate that it has taken all reasonable measures to reduce the damage suffered by the unemployment insurance and to allow work to continue (which means that it would normally have to recommence its business operations as soon as permission had been given to reopen).

Companies that remain closed may continue to claim short-time work compensation after 11 May 2020 if they can (plausibly) demonstrate that reopening the business would entail losses and lead to an increased risk of redundancies or permanent closure.

Furthermore, it is also possible to remain closed for the following reasons: if complying with the required hygiene measures is objectively impossible or if access to the business is restricted (because it is only served by a means of transport that must itself remain closed).

Entitlement to short-time work compensation may also continue to be claimed if a business can only open to a limited extent for economic reasons (e.g. restricted opening hours, limited offering). Short-time work compensation will thus continue be paid for employees who are still unable to be assigned work.


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