Short-time work compensation for monthly wage earners: vacation and public holiday compensation

The Lucerne court has ruled that the current handling of short-time compensation for monthly wage earners by the State Secretariat for Economic Affairs SECO is against the law.


After the outbreak of the Corona pandemic, the Federal Council decided to introduce a summary procedure for the settlement of short-time work compensation in order to reduce the administrative burden on companies and unemployment funds. In contrast to the regular procedure, this procedure does not take into account vacation and public holiday compensation for employees on a monthly salary. The Lucerne Cantonal Court ruled on February 26, 2021 that this practice is against the law.


However, the State Secretariat for Economic Affairs SECO is maintaining its directives according to which employees on a monthly salary are currently not entitled to vacation and public holiday compensation and intends to appeal the decision together with the relevant unemployment insurance fund. Until the legal situation is finally clarified, the State Secretariat for Economic Affairs SECO asks companies not to submit any such applications and, referring to the ongoing proceedings, states that it will not comment further on the matter.


As an immediate measure, we recommend that affected companies request a contestable ruling from the responsible unemployment insurance fund for short-time work compensation already received or, if a ruling already exists, submit a request for reconsideration. At the same time, the unemployment insurance fund should be asked to suspend the procedure for issuing a ruling or the request for reconsideration until the legal situation has been clarified and a legally binding ruling has been issued. It is also advisable to claim vacation and public holiday compensation in future settlements.


We will support you with the necessary formalities and the assertion of vacation and vacation compensation. Please get in touch with us.


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Philipp Gisler, 9 April 2021


Keywords: short-time work compensation, short-time work