Terms and conditions for RHT in COVID-19 time
Terms and conditions for RHT in COVID-19 time
"I have just received a decision from the Geneva Employment Office granting my company compensation for reduced working hours. However, I'm surprised to learn that my application is considered late because it was made after 31 March 2020 and that, as a result, its effects cannot be backdated to 17 March 2020. I am concerned about the future and would like to know more. "
B, Geneva
The measure relating to the conditions for granting short-time working is now one of the best known of the measures taken by the Federal Council to alleviate the serious economic consequences of the COVID-19 crisis.
As a reminder, short-time working allows a company to receive unemployment insurance compensation in the event of a reduction in working hours (RHT). A loss of work is deemed to exist when it amounts to at least 10%, is due to economic factors and is unavoidable.
Under normal circumstances, the Federal Law on Unemployment Insurance (LACI) stipulates that an employer intending to claim compensation for his employees must notify the competent authority in writing at least 10 days before the start of the RHT. In particular, the employer must state how many workers are affected and how long the RHT is likely to last. The notice must be renewed if the RHT lasts more than three months.
In response to the extraordinary threat of COVID-19, the government was forced to derogate from the LACI by ordinance of 20 March 2020. These derogations include waiving the notice period, which means that the employer does not have to comply with the aforementioned time limit when appealing to the authority. They can even simply make their request by telephone.
Another consequence of the pandemic addressed by the emergency ordinance is the change to the waiting period. Normally, three days are deducted from the loss of work to be taken into account for each calculation period; this period has now also been abolished.
The State Secretariat for Economic Affairs (SECO) has introduced a practice whereby any application submitted to the authorities before 31 March 2020 is deemed to have been submitted on 17 March 2020 if the company concerned has closed down as a result of the containment measures imposed since that date. However, such a practice seems controversial at cantonal level, and many constituents find it difficult to understand why companies that tried to wait before applying for state aid would be penalised.
That said, the decisions of the Geneva OCE and other cantonal authorities in this area may be challenged within 30 days of receipt. It is to be hoped that the courts will set a precedent that will lead the authorities to clarify and justify their practice.
