The Effect of Coronavirus on Employment in Switzerland

Frequently Asked Questions (updated 29th October 2020)

Switzerland has an increasing number of new infections, and deaths from COVID-19. The Swiss federal government, has decreed that masks must be worn on public transport,  in shops, restaurants and all other public areas both indoors and outdoors (the latter wherever separation is not possible) throughout Switzerland. Further restrictions apply in some cantons. Those entering from high risk countries must quarantine for 10 days, and Switzerland is now considered a high risk by many other countries.

How does the Coronavirus affect you as an employer or employee in Switzerland? What are your legal rights and how do you stay healthy while avoiding financial or legal pitfalls?

This FAQ answers the most important questions arising and will be updated as things develop, so you are welcome to bookmark and follow us on linkedin or facebook. Please note due to the rapidly developing situation we are not responsible for the correctness of this content.

Can employees come into Switzerland in order to work, and are work permits being issued?

Switzerland’s borders are currently open in general. Work permit applications are being processed in the same way as before the COVID-19 pandemic.

However for those arriving from countries on the high risk list (even if they enter via an intermediate country not of high risk) quarantine of 10 days is required. Here is the current Swiss list of COVID-19 high risk countries.

Additionally. foreign nationals from COVID-19 high risk countries outside the EU/EFTA area and UK will only be admitted into the country if they have a work or residence permit – Schengen tourist visas are not being issued to them for other than exceptional reasons.

Who is to come to work and who is to stay home?

Businesses are still open in Switzerland but subject to restrictions.

Employees can come to work as long as social distancing and hygiene rules are observed but should work from home where possible and if in the office wear a mask unless they are alone. Anyone returning from a country regarded by the Swiss authorities as a COVID-19 high risk country must quarantine for 10 days before returning to the office.

Are employees allowed to stay away from work to avoid catching the virus?

No. Absence from work without official agreement of the employer is regarded as unauthorised absence: the employee is not entitled to be paid for this time off. They even risk dismissal without notice. However the employer must adhere to the current rules for social distancing, hygiene, and the maximum number in any gatherings.

Exceptionally, people in a high risk group (65 year old or over, or with health conditions that would endanger them from catching the virus) may be permitted to stay home and isolate, either working (where possible) or not, and their time must be paid (not compensated with overtime or their holiday entitlement). However they can be required to go to work where their presence is necessary.

Can an employer prevent an employee from travelling privately to a high risk area.

No, and this cannot be a reason for dismissal. However the employee may not be covered for work they cannot perform due to any resulting quarantine. (See the appropriate question in this FAQ).

Must an employer pay an employee if they are caught in a quarantine while away from work, for example on holiday?

If the employee is quarantined at home while in Switzerland by order of the authorities for example due to contact tracing, this is beyond their control and they cannot work from home, they are entitled to a special loss of work compensation. This compensation amounts to 80 percent of the income based on the AHV salary that was earned before entitlement to compensation began, up to a maximum of CHF 196 per day. The maximum daily allowance is paid to employees with a monthly salary of CHF 7350 (7350 X 0.8 / 30 days = CHF 196 per day), or self-employed persons with an income subject to AHV of CHF 88 200 (88 200 x 0.8 / 360 days = CHF 196 per day). There is no minimum level of compensation. In the event of partial loss of income, compensation amounts to 80% of the corresponding loss of income and is paid for the entire period.

If the employee has the virus, then the sickness insurance will pay for work lost during the quarantine and recovery period unless a waiting period has been agreed in the insurance contract.

If the employee is quarantined when returning from a high risk area that is on the Swiss government list of high risk countries, they do not have the right to payment by the employer for lost work time, unless they were on official business, or unless they are able to work effectively from home while in isolation.

The employee may then however qualify for government compensation if the country they are returning from was not on the high risk list (and not announced as going on the list) when they went to it. In this case they need to apply to the appropriate OASI compensation office.

Please note that not quarantining is an offence under the Epidemie Act, even if a COVID-19 test is negative, and even if the employee entered Switzerland by transiting through a country not on the high-risk list. Details for travellers are here.

Can an employer still lay off an employee or terminate their employment during the Coronavirus lock down?

The notice period and rules for termination by employer or employee remain unchanged due to Coronavirus. A fixed term employment contract ends on the pre-determined end date unless extended. An employee cannot be served notice while off sick, but this has not been extended to also apply to someone who is not sick but just quarantined.

The employer can likewise only lay employees off or cut their work weighting by serving notice respecting the above mentioned notice periods. An exception can be made if the employer applies for “Short term working” (furlough) for a given department due to economic adversity. In this case they can partly or completely lay off relevant workers for a short period and the workers will be compensated in the same way as unemployed but the employee has to agree to the Short Term working (this is usually in their interest).

Is there special financial help for employees terminated due to Coronavirus?

Anyone who loses their job, regardless of nationality and work contract can receive benefit at 80% salary as long as they have worked in Switzerland or the EU/EFTA/UK for a minimum qualifying period. In the first instance you need to contact your local employment office. In Zürich a good place to start is

Can an employer claim short-time work (furlough) compensation for employees as a consequence of the current situation.

Compensation for short-time working (furloughing) is still supported but from 1 September the special COVID-19 rules no longer entirely apply:

  • the simplified application and settlement procedure that was established during the COVID-19 period will be retained until 31 December 2020.
  • the maximum period over which short time work can be claimed will be 18 months.
  • the maximum period which can be applied for will be 3 months, after which new advanced notification (1 day) must be resubmitted.

The essential rules for this cover are as follows:

  • There has to be a shortfall of at least 10% work hours collectively for employees in a given operational unit.
  • There must be a valid reason which is identifiable as a consequence of the pandemic. This could be that the work requires physical presence which is not possible under the federal rules, that the work depends on external suppliers or services that are not available, or that there is no demand for the work as a consequence of the virus.
  • The application must be made in advance of the work being curtailed.
  • People of a pensionable age (65 for men, 64 for women) are not eligible.
  • The employee cannot be under notice of termination.

The compensation takes the following form:

  • 80% of the gross salary (up to a gross salary limit of CHF 12’350 per month) payable based on the shortfall, plus the employer charges on this amount for social premiums (AHV/IV/ALV)
  • The remaining 20% salary does not have to be covered by the employer, but the social premiums on the full 100% salary (AHV Salary) have to be covered by the employer. This will include any insurance and pension premiums on the 100% salary.
  • The family allowance, pension premiums, accident/sickness insurances on the salary have to be covered by the employer
  • Holiday continues to be earned based on full salary. Holiday taken is not Short term work and is covered 100% by the employer.
  • Compensation can be paid for up to 18 months in any 2 years, although there is a 4 month limit on compensating more than 85%.

How are business trips being regulated?

All travel is to be kept to a minimum. Social distancing is to be adhered to. Essentially only undertake business trips if absolutely necessary and subject to the general requirements regarding employees elsewhere in this FAQ.
If an employee is prevented from returning to work as a result of quarantine whilst on a business trip the employer has to pay them for the time not being worked.

Where can I find more information on the Coronavirus in Switzerland?

This FAQ is compiled based on facts from the following sources:

Federal Ordinance on COVID-19
Centre Patronal
State Secretariat for Migration

If you have further questions feel free to contact us.

If you have any further questions please don’t hesitate to contact us. We are always interested to know what people are concerned about regarding Swiss employment.

Please note the above information is provided without guarantee or warranty. Employment, tax and pension laws are dependent on your specific situation and can change quickly. To be sure of the facts always contact us directly for a verified up to date answer.