Short-Time Work (Kurzarbeit) in Switzerland

How KAE Works

The employer submits a KAE application to the cantonal employment authority before reducing hours. If approved, the ALV pays 80% of the insured wage for the hours not worked. The employer pays 100% for hours actually worked. A waiting period (Karenztage) of 2–3 days per month must be borne by the employer without ALV reimbursement. Workers cannot apply for KAE themselves, it is always an employer request.

Who Qualifies?

Eligible employees: regular employees with an employment contract, AHV-contributing, and available for work. Not eligible: business owners or shareholders who significantly influence the company, employees on fixed-term contracts due to expire, apprentices. Employees who refuse short-time work when it is contractually allowable risk losing their employment relationship. Part-time employees qualify on the same basis as full-time.

Maximum Duration and End of Scheme

Maximum KAE period: 24 months within a 2-year reference period. After 24 months, the company must either return to normal operations, implement structural adjustments (restructuring, layoffs), or wait before reapplying. During KAE, normal dismissal rules apply, an employer can still terminate employment. The ALV then switches the worker to individual unemployment benefit.

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Frequently Asked Questions

Does my employer need my agreement to put me on short-time work?

If the employment contract or GAV allows for unilateral work reduction, agreement is not strictly required. Without such a clause, the employer needs your consent or must issue a change-notice. In practice, KAE is usually agreed between employer and employee.

How much will I earn during short-time work?

The employer pays full wages for hours worked. The ALV pays 80% of the insured wage for hours not worked. In practice, most workers receive 85–95% of their normal salary, depending on how many hours are reduced.

Can I take on another job during short-time work?

Yes, but you must declare the income to the ALV. Earnings from additional employment reduce the KAE payment proportionally. You remain obligated to your primary employer and must be available for work if hours are restored.