Coronavirus: extension of reduced work measures
The Federal Council has decided to extend the simplified procedure concerning the ILR until June 30, 2021 and voted the abolition of the waiting period
On March 19, 2021, the Federal Council of the Swiss Confederation decided to extend the simplified procedure concerning the compensation for short-time work (ILR) until June 30, 2021 and the abolition of the waiting period.
The corresponding amendments to the Unemployment Insurance Ordinance COVID-19 will enter into force on April 1, 2021.
Reduced work is used to preserve jobs that are temporarily threatened.
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From spring 2020, the use of ILR will follow the development of the epidemiological situation and the measures taken by the authorities to contain the COVID19 pandemic.
Given the measures in place at the national level, the demand for ILR is still high and is expected to remain so after 31 March 2021.
For this reason, the simplified procedure for ILR is being extended by three months.
This means that companies and enforcement agencies can still benefit from relief.
No deduction for accumulated redundant hours
With the extension of the simplified procedure, the current provisions will continue to apply: accumulated redundant hours outside of the reduced work phase will not be deducted and income earned from temporary occupations will not be counted in the ILR.
The elimination of the waiting period is also extended until June 30, 2021. This measure was originally adopted by the Federal Council in January 2021 (based on Article 17 of the COVID-19 Act).
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The abolition of the waiting period, which is an exemption for employers, removes a barrier to the use of ILR, improves the liquidity of companies introducing reduced work, and thus further reduces the likelihood of layoffs.
Given the current restrictions on economic activity, an extension of this measure is also warranted.
The three-month extension for the two measures will go into effect on April 1, 2021.
The Federal Council has adopted the necessary amendments to the COVID-19 ordinance after consultation with Parliament, the social partners and the cantons.
