FAQ COVID-19

Basic information for entrepreneurs and employees.

In this FAQ we compile all information and resources on legal issues related to the COVID 19 pandemic, which we continuously add to and update. They complement our own analyses and assessments, which we publish (as before) in our NEWS.

This FAQ does not constitute legal advice and is only intended to provide quick information to those affected.

Update: Last updated 28 March 2020, 09:00h.

 

LATEST NEWST

Wage replacement for the self-employed: forms available online

Update Mon 23.03.2020, 10:00h

The forms for the Corona income compensation for self-employed persons are now available online.

The payment of the new compensation for loss of earnings due to the corona crisis runs through the AHV compensation funds. You can find information here:

Update Mon 23.03.2020, 07:30h

The AHV compensation funds have announced that they will make online forms and information available to those affected by the Corona crisis on Monday. This should enable the self-employed in particular to obtain wage replacement quickly and easily.

Haveclaim :

  • Self-employed persons who cannot claim short-time work compensation;

  • Parents who have to interrupt their work due to school closures to look after their children;

  • Persons in medically ordered quarantine.

The compensation funds expect that funds can start flowing in mid-April .

To support those affected, information material and an online application form will be available on the internet from Monday. Some insurance funds have also strengthened their counselling team for telephone calls.

An information sheet on the temporary waiver of interest on arrears will also be posted. The collection of AHV contributions will be adjusted accordingly due to the measures of the Federal Council.

The Confederation estimates that over 160,000 affected persons could come forward. The compensation funds assume - in the case of a three-month economic restriction - payments amounting to CHF 1.5 billion.

FOUNDATIONS

Federal legal basis

Official information (federal government)

As the responsible federal office, the FOPH has published the following explanatory principles:

Official information (cantons)

  • At the cantonal level, the command staffs are active and the cantons publish their own measures on an ongoing basis. An overview of the cantonal competent bodies can be found here: Information and contacts in the cantons.

  • Canton of Zurich

    • The announcements of the Health Directorate of the Canton ZH (GD ZH) can be found HERE.

Contacts with authorities

Information for companies
SECO Infoline for companies
+41 58 462 00 66
Monday to Friday from 07:00 to 20:00.
Contact form "New Coronavirus"
E-mail: coronavirus@seco.admin.ch

General information for the population
Infoline Coronavirus
+41 58 463 00 00
24 hours a day

Infoline for persons wishing to enter Switzerland
+41 58 464 44 88

Economic package of measures of the BR of 20.03.2020

  • On 20.03.2020, the Federal Council approved a package of measures amounting to CHF 32 billion.

  • The measures apply immediately and retroactively to 17 March 2020. They are limited to six months.

  • The package includes the following liquidity support measures for companies(SECO overview):

    • Emergency aid by means of guaranteed COVID bridging loans
      To enable affected SMEs (sole proprietorships, partnerships, legal entities) to obtain bridging loans from the banks, the Federal Council will launch a guarantee programme worth CHF 20 billion. This programme is to build on existing structures of the guarantee organisations. Affected companies are to receive credit amounts of up to 10% of turnover or a maximum of CHF 20 million quickly and without complications. Amounts up to CHF 0.5 million are to be paid out immediately by the banks and 100% guaranteed by the Confederation. Amounts exceeding this are to be 85% guaranteed by the Confederation and subject to a short bank check. The loan amounts up to CHF 0.5 million are expected to cover over 90% of the companies affected by COVID. The Federal Council expects that bridging loans of up to CHF 20 billion will be guaranteed by the Confederation through this vehicle and will propose a corresponding urgent commitment credit to the Federal Assembly. This will be submitted to the Finance Delegation of the Federal Assembly for approval in the next few days. The necessary key points will be laid down in an emergency ordinance, which will be adopted and published in the middle of next week. Questions from those concerned about the modalities for submitting these applications can only be answered from then on.

    • Deferred payment of social insurance contributions
      Companies affected by the crisis can be granted a temporary, interest-free deferral of payment of social insurance contributions (AHV/IV/EO/ALV). The companies also have the option of having the amount of the regular contributions on account to the AHV/IV/EO/ALV adjusted if the sum of their wages has fallen significantly. The same applies to self-employed persons whose turnover has slumped. The AHV compensation funds are responsible for checking the deferral of payments and the reduction of the contributions on account.

    • Liquidity buffer in the tax area and for suppliers of the Confederation
      Companies are to have the option of extending payment periods without having to pay interest on arrears. For this reason, the interest rate will be reduced to 0.0 per cent for VAT, customs duties, special excise duties and incentive taxes in the period from 21 March 2020 to 31 December 2020. No interest on arrears will be charged during this period. The same regulation will apply to direct federal tax from 1 March 2020 to 31 December 2020. Finally, the Federal Finance Administration has instructed the federal administrative units to check accounts payable invoices quickly and pay them as soon as possible, without taking advantage of payment deadlines. This will strengthen the liquidity of the Confederation's suppliers.

    • Legal standstill according to the Federal Debt Collection and Bankruptcy Act (SchkG)
      From 19 March to 4 April 2020, debtors throughout Switzerland may not be enforced. The Federal Council ordered the so-called legal standstill in the debt collection system at its meeting on 18 March 2020.

LABOUR LAW

Occupational pandemic preparedness

For all questions concerning occupational pandemic preparedness, SECO has published a comprehensive FAQ Pandemic and Operations (current edition of 11.03.2020), which also covers various legal issues. However, due to recent legislation, additional restrictions may exist.

The FOPH has published the following information and resources on occupational health protection with reference to the coronavirus:

In the event that the Federal Office of Public Health classifies the situation as special or exceptional (Art. 6 and 7 EpG), employers are required to take further protective measures and draw up a pandemic plan. In October 2019, the FOPH, together with the influenza working group, published a manual for workplace preparation for an influenza pandemic, which is also valid in the current situation.

The aim of a pandemic plan is to ensure the protection of employees and at the same time to be able to ensure the operation of the company. A pandemic plan includes, for example, the training of hygiene measures, the use of protective clothing or material as necessary, measures to increase hygiene (disinfection of workplaces, distribution of disinfectants), measures to organise workplaces (e.g. video conferencing and virtualisation of meetings, instead of travelling, etc.). Workplace pandemic plans are sector-specific and must be developed and implemented accordingly. Pandemic plans must also be drawn up by non-profit organisations, as the obligations under labour law as an employer and the organisational considerations for occupational pensions are valid regardless of whether the organisation is for-profit or otherwise. If there are branches abroad, they should prepare their pandemic plans on their own and according to the law applicable at the location.

The employer is obliged to provide adequate protection for his employees during work(Ordinance 3 to the Labour Act (ArGV 3; Health Protection) with SECO guidance on the individual articles). This may well involve the company providing masks and similar protective materials. It is recommended to follow the recommendations of the FOPH (duty of care).

In return, the employee is obliged to provide information about any illnesses (duty of loyalty). A compulsory vaccination cannot be imposed. The cantonal medical officer is responsible for placing a business under quarantine or closing it. The entrepreneurial risk remains. There is no compensation for loss of turnover or income. Liability issues in pandemic cases are regulated according to cantonal law (Art. 71 EpG). The canton of Zurich, for example, has no corresponding liability obligation. However, there is insolvency compensation, which can cover loss of wages in the event of the employer's inability to pay.

Employer's duty of care and right to issue instructions

Due to the duty of care (OR 328 para. 2), the employer must take reasonable measures to protect the health of the employees. This also includes self-quarantine if an employee has returned from a risk area (China, Iran, Northern Italy, South Korea).

Based on the right to issue instructions (OR 321d), the employer may order telework or home office. In this case, employees must comply with such instructions. It is also possible to order that overtime or overtime be compensated or that holidays (OR 359c) be taken, whereby in the case of compulsory holidays the interests of the employee(s) must be taken into account by the employer. In such cases, the full salary is due (OR 324 para. 1). In the case of compensation for overtime and extra hours, the employee's consent is required. Working hours are generally in accordance with the law. In principle, the employer may also order a ban on holidays, as he/she can determine the time of the holidays. The employee must be consulted and his or her wishes must be taken into account. However, the postponement of already agreed holidays is only justified for serious reasons. A compulsion to take unpaid leave is null and void. Company holidays are also conceivable, but these must be announced in good time (at least 3 months) in advance. Of course, a mutual agreement can be reached at any time.

Source: Partially taken from the website of the Swiss Trade Association (as of 22.03.2020; 13:00h)

Obligation to continue to pay wages

If an employee falls ill, the company is obliged to continue paying wages (OR 324 para. 1). If the company has a daily sickness benefit insurance (KTG), this takes effect after the expiry of the contractually agreed waiting period (usually 30, 60 or 90 days). If the employer does not have a daily sickness benefit insurance, the duration of the continued payment of wages is based on the existing scales (Berner, Basler, Zürcher Skala). If the employer waives the employee's right to work, the agreed salary must continue to be paid. Many KTG insurances also provide for a reservation in the GCI or at least a right of adjustment in the GCI in the event of a pandemic. A look at the GCI is therefore indispensable. If there are many KTG notifications, there is a risk that the insurance company will adjust the benefits.

An ordered self-quarantine cannot be charged to the KTG if there is no case of illness. The same is the case if the competent authority should order a quarantine measure against an employee pursuant to Art. 35 para. 1 lit. a EpiG. If the employee wishes to be absent from work of his or her own accord, there shall be no entitlement to a salary for the period of absence.

Wages are also owed (for a limited period, OR 324a) in the following cases:

  • The employee falls ill during the holidays and is therefore unable to travel.

  • The employee falls ill with coronavirus during the holidays and is therefore unable to travel.

  • The operation has to be stopped due to delivery bottlenecks of the supplier.

  • The employee cares for a child suffering from coronavirus at home (Art. 36 ArG).

  • The employer sends the employee home or closes the company as a precaution.

  • The employer refuses to take protective measures and apply hygiene regulations.

  • Schools and kindergartens are closed by the authorities. The employee must take care of the children (ZGB 276).

  • The enterprise is closed by order of the authorities. However, the employee may be obliged to make up the "missed" working hours on the basis of his fiduciary duty.

Wages are not owed in the following cases:

  • The employee cannot return from the holiday because the authority responsible at the holiday destination does not allow the employee to leave or closes the border (force majeure).

  • The worker is a fearful person and refuses to work out of caution because he or she might be infected (refusal to work).

  • The employee cannot come to work because public transport is reduced or discontinued (take other means of transport). However, if the work can be done from home (telework), the wage is due.

  • The employee does not send his or her child to the crèche out of fear, but looks after it at home and therefore has to stay away from work.

  • The (entire) place of residence of the worker is quarantined.

Source: Partially taken from the website of the Swiss Trade Association (as of 22.03.2020; 13:00h)

Adaptations to the Labour Code for hospitals and clinics

Basics

Hospitals and clinics are particularly challenged in the current situation. Due to the extraordinary workload and scarce staff resources, it is not possible for them to deploy staff in such a way that all legal requirements are met. Therefore, they are given flexibility as far as possible with regard to working and rest times. However, the primary goal is still to ensure that the doctors, nurses, technical staff and all other persons who make their valuable and dedicated contribution to coping with this extraordinary situation are sufficiently protected.

Legal source: https://www.newsd.admin.ch/newsd/message/attachments/60712.pdf (integrated in COVID-19-VO-2/21.03.2020)

PROCESS LAW

Suspension of time limits in civil and administrative proceedings

Due to the extraordinary situation in connection with the coronavirus, the Federal Council published the Ordinance on the Standstill of Time Limits in Civil and Administrative Proceedings for the Maintenance of Justice in Connection with the Coronavirus (COVID-19) on 20 March 2020 and made use of its competence under Art. 185 of the Federal Constitution and ordered an extension of the court holidays in civil and administrative proceedings that were due to take place over the Easter period anyway. They will now last from 21 March to 19 April 2020, which applies to all proceedings under federal or cantonal law. Excluded are proceedings in which no court holidays are provided for today, namely in urgent matters and in criminal proceedings.

With this, the Federal Council wants to give the courts, the lawyers and the parties breathing space to prepare for a difficult time. This applies in all proceedings under federal or cantonal law. Excluded are proceedings in which there is already no provision for judicial holidays, namely in urgent matters as well as criminal proceedings.

The Federal Supreme Court issued a decision to this effect on 19.03.2020, which will be brought to the attention of lawyers.

Legal deadlock in debt collection proceedings

See also the news article on the legal standstill in the debt collection system.

From 19 March to 4 April 2020, debtors throughout Switzerland may not be enforced. The Federal Council ordered the so-called legal standstill in the debt collection system at its meeting on 18 March 2020.

Immediately thereafter, the statutory debt collection holidays begin until 19 April 2020.

This legal standstill is a legal benefit for the debtor and does not inhibit ongoing appeal periods. Applications for attachment can also be filed as before.

Legal source: https://www.admin.ch/opc/de/classified-compilation/20200804/index.html (integrated in COVID-19-VO-2/21.03.2020).

CIVIL LAW

General contract law

The general contract law according to OR applies unchanged and without restrictions. This also applies to the law of contract and the obligation of performance as well as the dunning procedure as long as there is no legal deadlock.

Meetings of legal entities held electronically or in writing

See the news article on electronic meetings of legal entities (companies and associations).

CURRENT WORK/KAE

Extension and simplification of short-time work/COE

The instrument of short-time work compensation ("KAE"; basic brochure of SECO from 2016 [no longer current]) makes it possible to compensate for temporary employment slumps and to preserve jobs. Due to the current exceptional economic situation, people who work on a fixed-term, temporary or employer-like basis, as well as people who are in an apprenticeship relationship, are also severely affected. For this reason, the entitlement to short-time work compensation is to be extended and the application process simplified:

  • Short-time work compensation can now also be paid to employees in fixed-term employment relationships and to persons in the service of a temporary work organisation.

  • Newly, the loss of work shall also be creditable for persons who are in an apprenticeship relationship.  

  • In addition, short-time work compensation can now also be paid to quasi-employees. Employer-like employees are, for example, partners of a limited company who work in the company as salaried employees in return for remuneration. Persons who work in the business of their spouse or registered partner can now also benefit from short-time work compensation. They are to be able to claim a lump sum of CHF 3320 as short-time work compensation for a full-time position.

  • The already lowered waiting period for short-time work compensation is abolished. This means that employers no longer have to contribute to the loss of work.

  • Workers no longer have to reduce their overtime before they can benefit from short-time work compensation.

  • In the area of processing applications and payments for short-time work, urgent simplifications were also made with the adoption of new provisions. This makes it possible, for example, to advance wage payments due via KAE.

General information on the KAE

  • Unlike unemployment compensation, benefits are paid to the employer. However, every employee has the right to refuse short-time work compensation. The employer must continue to pay these employees their full wages. However, employees are then at increased risk of being dismissed.

  • The claim for short-time work must be made by the employer. The employer must submit an advance notification to the competent cantonal office (KAST) at least 3 calendar days before the intended start of the compensation. The forms Pre-notification of Short-Time Work) and Consent to Short-Time Work) must be submitted.

  • Employees must agree to be sent on short-time work. The employer must clarify this beforehand.

  • In addition, the following conditions must be met for an employer to be entitled to KAE:

    • the employment relationship must not have been terminated (Art. 31 para. 1 let. c AVIG)

    • the loss of work is likely to be temporary and it may be expected that short-time work can preserve the jobs (Art. 31 para. 1 let. d AVIG)

    • the working time is controllable (Art. 31 para. 3 let. a AVIG)

    • the loss of work accounts for at least 10 per cent of the working hours per accounting period (Art. 32 para. 1 let. b AVIG)

    • the loss of work is not caused by circumstances that are part of the normal operating risk (Art. 33 para. 1 let. a AVIG)

  • The KAST of the canton in which the head office of the company or the company department is located is responsible for processing the pre-registration. The KAST will also answer any questions regarding entitlement to short-time allowance.

Corona-related facilitation and SECO measures

  • The advance notification period for KAE has been reduced from 10 to 3 days, i.e. the company must still submit the advance notification to the competent cantonal office at least 3 days before the start of short-time work.

  • The justification for short-time work can be kept shorter in the preliminary notification as long as it is credible.

  • The settlement of the KAE is simplified (only one form, only five items of information required); thus, advances on KAE can also be simplified and paid out more quickly.

  • The waiting period for the receipt of KAE has been abolished (companies no longer bear a deductible).

  • The entitlement to short-time allowance is extended to persons in fixed-term employment, apprenticeships or in the service of a temporary work organisation.

  • The entitlement to short-time work is also extended to persons who are in a position similar to an employer or who work in the business of the spouse or registered partner.

  • Existing overtime and holiday credits no longer have to be reduced before the KAE is drawn.

  • The employer can make a claim for those employees who have completed compulsory schooling and have not yet reached the AHV retirement age. In addition, the employees must be in an employment relationship that has not been terminated.

  • Employees who are not entitled to ...

    • who are in a terminated employment relationship;

    • who do not agree with the short-time work;

    • whose working time is not sufficiently controllable (e.g. on-call employment).

  • Short-time work compensation is paid to the employer after the waiting period. It amounts to 80% of the loss of earnings attributable to the lost working hours.

  • The short-time allowance is paid for a maximum of 12 months within a period of 2 years; a monthly loss of working hours of more than 85% is only eligible for a maximum of 4 months.

  • The ALV also pays the employer's contribution to the AHV/IV/EO/ALV in the case of short-time work compensation (cf. Info-Service brochures and accounting forms). The employer's contribution to AHV/IV/EO/ALV is 6.225%.

Questions and answers on Corona-related short-time work/KAE

Sources

What does "normal operating risk" mean in the context of coronavirus?

SECO considers the unexpected occurrence of the new coronavirus and its effects not to be part of the normal operational risk.

Can all companies therefore apply for KAE with reference to the coronavirus?

No. The general reference to the new coronavirus is not sufficient to establish a claim to KAE. Rather, employers must continue to credibly demonstrate why the work absences to be expected in their company are due to the occurrence of the coronavirus. The loss of work must therefore have an adequate causal connection with the occurrence of the virus.

Has the waiting period been reduced?

The Federal Council is free to determine the amount of the waiting period, which may not exceed three days per month. On 20 March 2020, it abolished the waiting period for the receipt of KAE. This means that companies are entitled to the KAE immediately, without having to bear the loss of work for a certain number of days per month. The Unemployment Insurance Ordinance (AVIV) was amended accordingly.

Are hourly-paid workers entitled to KAE?

Yes, provided that all requirements are met. The same eligibility requirements apply to hourly-paid workers as to monthly-paid workers.

Are persons in fixed-term employment and temporary employees entitled to KAE?

Yes, the entitlement to short-time allowance has been extended by the Federal Council to persons in fixed-term employment, in apprenticeships or in the service of a temporary work organisation.

Are on-call workers entitled to KAE?

No, if the average workload varies by more than 20%. These persons cannot count on a regular number of working hours guaranteed by their employment contract. The loss of working hours is therefore not determinable.

Are staff leasing agencies/recruitment agencies entitled to KAE?

Yes, provided the employees concerned have a permanent employment contract and all other requirements are met.

Are apprentices entitled to KAE?

Yes, the entitlement to short-time allowance has been extended by the Federal Council to persons in fixed-term employment, in apprenticeships or in the service of a temporary work organisation.

Is there a risk that cantons will handle prior notification differently?

The conditions for entitlement to KAE are laid down in the Unemployment Insurance Act (AVIG) or the Unemployment Insurance Ordinance (AVIV). The cantons must examine the conditions to the same extent. This means that unequal treatment is prohibited. SECO assumes a control function here in that it randomly checks the legality of the corresponding preliminary applications for KAE.

Source: Partially taken from the website arbeit.swiss (as of 22.03.2020; 13:00h)

Cantonal regulations and directives on short-time work/KAE

Canton of Zurich

  • The Canton of Zurich "asks for patience"(LINK)

    • According to the AWA, only the following formalities must be complied with (those regarding the form Pre-notification of Short-Time Work):

      Due to the simplifications decided by the Federal Council for the advance notification for short-time work in connection with the coronavirus, the submission was simplified.

      • The pre-registration must reach us 3 days before the start of the planned short-time work.

      • Use a separate sheet to answer questions 9 to 12. You only have to answer the following questions:
        9 a) Field of activity of your company
        10 b) Monthly turnover / fee amounts in the last 2 years
        11 a) Reason for the short-time work (connection between the work losses in your company and the occurrence of the coronavirus)
        11 c) Have order dates been postponed, if so, why? Type and scope of the postponed orders

      • You do not need to submit the following for the advance notification: the "Consent to short-time work" form and a copy of the current extract from the commercial register (in accordance with the simplifications decided by the Federal Council).

      Submit your pre-registration in one of the following ways:

      • ALV letterbox
        Monday to Friday 6.00 a.m. to 7.00 p.m.
        ALV, Stampfenbachstrasse 32, Zurich
        Letterbox in the entrance hall on the ground floor

        Letterbox Cantonal Administration Zurich
        Monday to Friday 7.00 p.m. to 6.00 a.m. and Saturday / Sunday
        Grey letterbox at Walcheplatz 2 (in the passageway) 

      • By postOffice of Economic Affairs and Employment
        Unemployment insurance
        Short-time work
        Stampfenbachstrasse 32
        8090 Zurich

      • By e-mail to alvhotline@vd.zh.ch

What do I have to do in concrete terms regarding short-time work/KAE?

CONCRETE means that

  • The necessary forms for registering short-time work can be found HERE . There are special forms for coronavirus-related short-time work.

  • A justification must still be given, but with reduced requirements (prima facie evidence of the influence of the coronavirus is sufficient).

  • Consent of employees is still required.

  • KAE can now also be paid to employees with a position similar to that of an employer, in fixed-term employment relationships.

  • There is no longer a grace period.

  • Registration period reduced to three days.

  • Simplifications in processing.

  • Holidays and ÜZ do not have to be dismantled first.

LOSS OF WORKING HOURS/EO

General information on compensation for loss of earnings due to measures against the coronavirus

SECO FAQ "Compensation for loss of earnings in the event of measures against the coronavirus".

  • The measures were decided on 20 March 2020. The measures apply immediately and retroactively to 17 March 2020. They are limited to six months.

  • The Federal Social Insurance Office and the AHV compensation funds are in the process of organising the procedure for registration, clarification and payment. This work is being carried out at full speed.

  • However, it should be early to mid-April 2020 before the system is fully operational.

  • Until then, the claim for loss of earnings cannot yet be registered and compensation cannot yet be paid out. We ask those affected for their understanding and patience.

  • Updated information will be posted on this website and made available by the compensation offices on an ongoing basis and as early as possible.

Compensation for loss of earnings for employees

SECO FAQ "Compensation for loss of earnings in the event of measures against the coronavirus". 

Parents who have to interrupt their gainful employment due to school closures in order to look after their children are entitled to compensation. Parents who have to interrupt their work due to school closures in order to look after their children are also entitled to compensation if they have to interrupt their work due to a quarantine prescribed by a doctor.

As is the case for the self-employed, loss of earnings is regulated on the basis of the compensation for loss of earnings ordinance (EO; compensation for loss of earnings in the event of service or maternity) and paid as a daily allowance.

This corresponds to 80 per cent of the income and amounts to a maximum of 196 francs per day.

Compensation is limited to 10 daily allowances for persons in quarantine measures.

Compensation for loss of earnings for self-employed persons

More information HERE. SECO FAQ "Compensation for loss of earnings in the event of measures against the coronavirus". In addition, the general remarks.

Self-employed persons who suffer loss of earnings due to official measures to combat the coronavirus shall be compensated, unless compensation or insurance benefits already exist. Compensation is provided for the following cases:

  • School closures

  • Medically prescribed quarantine

  • Closure of an independently run business open to the public

The regulation also applies to freelance artists who suffer an interruption in their income because their engagements are cancelled due to the measures against the corona virus or because they have to cancel an event of their own.

Compensation is regulated on the basis of the income replacement regulations and is paid as a daily allowance. This corresponds to 80 per cent of the income and amounts to a maximum of 196 Swiss francs per day.

The number of daily allowances for self-employed persons in quarantine or with care responsibilities is limited to 10 and 30 respectively.

The verification of the claim and the payment of the benefit is carried out by the AHV compensation funds.

Other topics:

  • Immediately adjust the expected annual income and adjust the bills on account(Canton ZH)

  • An interest-free deferral of payment of social insurance contributions (AHV/IV/EO/ALV) is also intended to relieve the burden on companies. For this reason, the SVA Zurich will not charge interest on late payments until further notice.

Wage replacement for self-employed persons: From Monday, 23.03.2020, the forms are available

Update Mon 23.03.2020, 07:30h

The forms for the Corona income compensation for self-employed persons are now available online.

The payment of the new compensation for loss of earnings due to the corona crisis runs through the AHV compensation funds. You can find information here:

Update Mon 23.03.2020, 07:30h

The AHV compensation funds have announced that they will make online forms and information available to those affected by the Corona crisis on Monday. This should enable the self-employed in particular to obtain wage replacement quickly and easily.

Haveclaim :

  • Self-employed persons who cannot claim short-time work compensation;

  • Parents who have to interrupt their work due to school closures to look after their children;

  • Persons in medically ordered quarantine.

The compensation funds expect that funds can start flowing in mid-April .

To support those affected, information material and an online application form will be available on the internet from Monday. Some insurance funds have also strengthened their counselling team for telephone calls.

An information sheet on the temporary waiver of interest on arrears will also be posted. The collection of AHV contributions will be adjusted accordingly due to the measures of the Federal Council.

The Confederation estimates that over 160,000 affected persons could come forward. The compensation funds assume - in the case of a three-month economic restriction - payments amounting to CHF 1.5 billion.

COVID-19-CREDITS

Guarantees for SME loans (COVID-19 SME guarantees)

  • More information can be found here: https://www.seco.admin.ch/seco/de/home/Standortfoerderung/KMU-Politik/Buergschaften_fuer_KMU.html

  • The Confederation provides up to CHF 20 billion in additional guarantee loans. These are also available to fundamentally healthy companies that run into Corona-related liquidity bottlenecks.

  • All enterprises except agriculture are entitled to submit applications

  • The Confederation covers 65% of the risk of loss, 35% is borne by the guarantee organisations themselves. The Confederation guarantees loans of up to CHF 1 million.

  • In addition, the Confederation reimburses all costs for the application review (enrolment fee and application review costs). It also reimburses the risk premium of 1.25% pa for new guarantees and existing guarantees for the year 2020.

  • According to the federal government's announcement, affected companies are to receive quick and uncomplicated credit amounts of up to 10% of turnover or a maximum of CHF 20 million. Amounts up to CHF 0.5 million are to be paid out immediately by the banks and 100% guaranteed by the federal government. Amounts exceeding this are to be guaranteed by the Confederation at 85% and require a short bank check. The loan amounts up to CHF 0.5 million should cover over 90% of the companies affected by COVID impacts.

  • The federal government plans to publish an emergency decree by the middle of the week of 23.03.2020

  • COVID 19 SME guarantees are processed through the structures laid down in the Federal Act on Financial Assistance to Guarantee Organisations for SMEs (SR 951.25) and the associated Ordinance (SR 951.251).

  • CONCRETE is the name:

AHV/BVG

Deferred payment of social security contributions

  • According to the package of measures 20.03.2020, companies affected by the crisis can be granted a temporary, interest-free deferral of payments for contributions to social insurance (AHV/IV/EO/ALV). The companies also have the option of having the amount of the regular contributions on account to the AHV/IV/EO/ALV adjusted if the sum of their wages has fallen significantly. The same applies to self-employed persons whose turnover has slumped. The AHV compensation funds are responsible for checking the deferral of payments and the reduction of the contributions on account.

  • The SVA ZH has announced: "Likewise, an interest-free deferral of payment of social insurance contributions (AHV/IV/EO/ALV) is intended to relieve the burden on companies. For this reason, the SVA Zurich is waiving the charging of interest on arrears until further notice."

  • CONCRETE is the name:

    • In the event of Liq difficulties, the SVA is to be contacted

INDIVIDUAL SECTORS

Emergency aid and compensation for losses in tourism and regional policy

Basics

Immediate measures have already been implemented since February 2020 within the framework of the tourism policy promotion instruments. The focus is on information and advisory activities as well as measures to bridge liquidity bottlenecks. The Confederation is strengthening its support by waiving the repayment of the remaining balance of the supplementary loan to the Schweizerische Gesellschaft für Hotelkredit SGH, which expired at the end of 2019. This makes an additional CHF 5.5 million available to the SGH for loans to retroactively finance investments by accommodation businesses that they have financed from cash flow in the past two years.

Within the framework of regional policy, federal loans amounting to around CHF 530 million are currently invested in projects, of which around 60 percent are in the tourism sector. The administration of federal loans is legally delegated to the cantons. In order to strengthen the liquidity of the borrowers, the federal government allows the cantons to handle the deferral options more flexibly. In this way, the mountain railway sector in particular can be supported in the short term, as here the amortisations are often due after the winter season.

Legal source: https://www.newsd.admin.ch/newsd/message/attachments/60724.pdf (integrated in COVID-19-VO-2/21.03.2020)

Emergency aid and compensation for losses in the cultural sector

SECO FAQ "Compensation for loss of earnings in the event of measures against the coronavirus".

The Federal Council wants to prevent lasting damage to the Swiss cultural landscape and preserve Switzerland's cultural diversity. By means of emergency aid and compensation, the economic impact of the event ban on the cultural sector (performing arts, design, film, visual arts, literature, music and museums) is to be cushioned.

In a first step, it is making CHF 280 million available for this purpose as a first tranche for two months.

During these two months, the Confederation will monitor further developments together with the cantons and cultural organisations.

The following measures are planned:  

  • Firstly, the Confederation makes funds available to provide emergency aid to cultural enterprises and cultural practitioners: non-profit cultural enterprises, for example foundations, can receive repayable interest-free loans to ensure their liquidity. Cultural workers can claim non-repayable emergency aid to cover their immediate living costs, insofar as this is not covered by the new compensation for loss of earnings based on the compensation for loss of earnings ordinance. This is handled by the cantons (for cultural enterprises) or Suisseculture Sociale (for cultural workers).

  • Secondly, cultural enterprises and cultural professionals can apply to the cantons for compensation for the financial damage caused by the cancellation or postponement of events or the closure of businesses. The compensation shall cover a maximum of 80 per cent of the financial loss. The Confederation shall bear half of the costs awarded by the cantons.

  • Thirdly, amateur associations in the fields of music and theatre can be supported with a financial contribution for the financial loss associated with the cancellation or postponement of events.

Emergency aid and compensation for losses in sport

Basis

In sport, clubs, associations and organisers face existential problems because events in popular and competitive sport or, for example, championship operations have to be cancelled. The Federal Council is providing the following financial cushions to ensure that the structures of the Swiss sporting landscape are not massively damaged:

  • CHF 50 million as repayable loans to bridge liquidity bottlenecks for organisations that are either active in a league of Swiss sport with predominantly professional playing operations or that organise competitions for professional competitive sport.

  • 50 million Swiss francs as subsidies in case of existential threat to organisations that are based on voluntary work and mainly promote grassroots sport.

The support is to be linked to an obligation on the part of leagues and federations to take measures to ensure liquidity in the event of a crisis. This obligation will be anchored in the annual performance agreement between the Confederation and Swiss Olympic.

Furthermore, the ordinance adopted today, which is valid for a limited period of six months, allows interruptions in training and further education to be dealt with in an accommodating manner in the Youth+Sport and Adult Sport promotion programmes. The same applies to sports studies at the Federal Institute of Sport in Magglingen.

Legal source: https://www.newsd.admin.ch/newsd/message/attachments/60713.pdf (integrated in COVID-19-VO-2/21.03.2020)

CERTAIN COMPANIES

Complementary medicine practice

See the news article regarding the continued operation of a TCM practice.

KITA, childcare facilities

Childcare services such as daycare centres are newly regulated according to COVID-19-VO-2/21.03.2020. In order to ensure the care of children, day care centres, day families and day structures may only be closed if other suitable care offers exist. The decision, as well as the guarantee of sufficient childcare provision, is the responsibility of the cantons.

The cantons have issued implementing directives:

MISCELLANEOUS

Official name of the virus and the viral disease

  • The virus is officially called Sars-CoV-2 (Sever Acute Respiratory Syndrome Coronavirus 2) or"coronavirus".

  • The disease caused by the new coronavirus is called Covid-19 (Corona Virus Disease 2019).