How can the covid-19 state aid package announced by the Federal Council be obtained? - Jonathan Bory et Florian Ducommun - Legal Factory
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How can the covid-19 state aid
package announced by the Federal
Council be obtained?
Jonathan Bory et Florian Ducommun
Legal Factory SA
Avenue Tissot 2bis
1006 Lausanne
1The aids at the disposal of companies and self-employed
workers are the following:
1. Extension of the right to short-time working compensation
2. Extension of compensation for the loss of earnings
3. Credit Facilities
4. Postponement of payment of social security contributions
21. Extension to the right of partial reduced hours
a. Am I eligible?
b. What are the conditions?
c. How do I submit my request? To whom do I send it?
3a. Am I eligible?
i. Spouse or registered partner employed in the business
ii. Persons making decisions or having an influence in the
company
iii. Persons with a definite duration contract; apprentices;
persons in the service of a temporary work
organisation.
4b. What are the conditions for eligibility?
i. Reduced work-hours due to coronavirus.
ii. Elimination of the grace period and the waiting period.
iii. Employees are no longer required to work overtime.
iv. Fast streamlining of claims processing and payment of
benefits.
5c. At what conditions? And what amounts?
i. Indemnity of 80% of the salary for employees
ii. Self-employed shall receive an indemnity of CHF 3’320.-
for a full-time position. There is therefore no need to
calculate the 80 % of this amount to determine the
indemnity.
6Some examples
i. A bakery (which remains open) but whose activity has
decreased
ii. The shareholders of an SME receiving a salary from the
company in the real estate sector
iii. A clothes shop (closed)
iv. Associates of a public notary
7c. How do I submit my request? To whom do I send it?
i. Simplified forms are available (see links) - Phase I-Notice and
Phase 2-Rationale
ii. Claiming compensation from the legal service of the cantonal
employment office (see links)
iii. Creation of the right in principle the day after filing - the question
of retroactivity is not clear
N.B : no more waiting period => the employer may directly ask to
the unemmployment fund (“Caisse de chômage”) the amount of
8
the indemnity.2. Compensation for loss of earnings for self-employed persons
a. Am i eligible?
b. What are the conditions?
c. From when am I entitled to have the allowance?
d. What is the amount of compensation?
e. How do I formulate my request? To who do I send it?
9Eligible persons: 1. Parents of children under the age of 12 who have to interrupt their income earning activity because the care of their children by third parties is no longer provided. 2. Persons placed in quarantine who have to interrupt their income earning activity. 3. Self-employed persons who suffer a loss of income as a result of the suspension of their activity ordered by the Federal Council or due to the prohibition of demonstrations. 4. Independent artists 10
What are the conditions?
1. Be compulsorily insured with the AHV
(this implies being domiciled or
employed) in Switzerland.
2. Engage in paid or self-employed
activities.
3. Not being able to tele-work
11Parents
The necessity to care for children must be caused by
measures to combat the coronavirus, e.g. the closure
of schools, nursery schools, crèches or where care is
made impossible because it was previously provided
by a person at risk (over 65 years of age, people with
chronic respiratory diseases, etc.).
Each eligible parent is entitled to the allowance.
However, only one allowance is paid per working
day, as only one parent can be responsible for the
care of the child.
12From when am I entitled to have the allowance? Entitlement begins on the fourth day on which all the conditions for entitlement are met, i.e. at the earliest on March, 19th 2020, as schools have been officially closed throughout Switzerland since March, 16th 2020. For parents who are self-employed, the entitlement ends when 30 daily allowances have been paid. 13
Quarantined individuals who have to interrupt their work activity. What conditions must I satisfy? Persons placed in quarantine who have to interrupt their income earning activity. A medical certificate is requested in the form. It is not clear whether self-quarantine is taken into consideration. The allowance is paid to the employer, if the 14 employer continues to pay the salary.
When does entitlement to the allowance arise?
Entitlement shall arise on the day on which all
the conditions for entitlement are fulfilled, at the
earliest on March 17th, 2020.
Entitlement ceases at the end of the quarantine,
but at the latest when ten daily allowances have
been paid.
15Allowance for self-employed/cross-border workers What are the conditions? To suffer a loss of earnings due to the cessation of their activity following the measures taken by the Federal Council (closure of the company and prohibition of demonstration under COVID-19 Ordinance). Self-employed individuals may request their reduced hours for their employees. They must also ask for APG for themselves. 16
• shops and markets
• restaurants, bars, discos, nightclubs and erotic
lounges
• entertainment and leisure establishments, including
museums, libraries, cinemas, concert halls, theatres,
casinos, sports and fitness centres, swimming pools,
wellness centres and ski areas, botanical and
zoological gardens and zoological parks
• service providers offering services involving physical
contact such as hairdressing, massage, tattooing or
beauty parlours
17For cross-border commuters, teleworking
during this period does not allow the
French authorities to consider that the
employee exercises more than 25% of his
working time in France; there is therefore
no submission to French social security
contributions.
18When does the right to an allowance arise?
In the event of the closure of the company, the
right shall arise on precisely the day on which all
the conditions for granting it are met, i.e. March
17th, 2020 at the earliest.
When does the right to the allowance expire?
The entitlement ends when the measures to
combat the coronavirus are lifted.
19How much is the amount of the allowance? The compensation amounts to 80% of the average gross income from remunerated activity before the start of the entitlement, but not more than CHF 196 per day. The maximum daily allowance is reached for an employee with an average monthly salary of CHF 7,350 (7,350 x 0.8 / 30 days = CHF 196/day). For the calculation of the allowance, the AHV 2019 income converted into daily earnings is decisive. 20
How do i obtain the compensation
Have the person concerned fill in the
following form:
https://www.ahv-iv.ch/Portals/0/adam/Co
ntent/LBIktL6xxEKdNmpn9xncag/Text/For
mulaire_Corona_Allocation_F_web.pdf
To be attached:
- Salary statements for the last three
months
- Medical certificate (quarantine)
Send as a pdf to your AVS fund
Cover letter: www.legalfactory.ch
213. Credit Facilities
a. Am I eligbile?
b. To what type of credits?
c. What are the conditions?
d. How do I make the request? When do I send it?
22a. Am i eligible?
i. Are eligible for a credit the sole proprietorships,
partnerships or legal entities having their registered
address in Switzerland (Art. 3 para. 1 of the Ordinance on
the Granting of Loans and Joint Guarantees in Connection
with Coronavirus[RS 951.261]).
ii. Entry in force and possibility to ask for a credit: March
23
26 , 2020.
thb. What are the type of credits? Covid-19 Loan: the banks pay out amounts of up to CHF 0.5 million per counterparty through a simple procedure, and these loans benefit from a 100 % federal government guarantee via the guarantee organisations. The current interest rate is 0 % (Art. 3 of the Ordinance on the Granting of Loans and Joint Guarantees in Connection with Coronavirus[RS 951.261]) Covid-19 Loan Plus: amounts above CHF 0.5 million and up to CHF 20 million benefit from an 85 % federal government guarantee via the guarantee organisations. These require the bank to review the application first. The maximum credit facility per counterparty is CHF 20 million. The interest rate on the federally guaranteed loan is currently 0.5 % (Art. 4of the Ordinance on the Granting of Loans and Joint Guarantees in Connection with Coronavirus[RS 951.261]). 24
c. What are the conditions?
i. The Vaud Cantonal Government releases 100 million
for interest-free loans (conditions to be clarified)
ii. The Federal Council 20 billion in transitional credits
(the Finance delegation (Findel) approved this
amount on March 23rd, 2020).
25c. What are the conditions?
Are eligible for a credit the sole proprietorships, partnerships or legal entities having their
registered address in Switzerland and who declare that:
i. they were founded before March 1st, 2020;
ii. they are not bankrupt, in debt restructuring proceedings or in liquidation at the time the
application is filed;
iii. they are substantially affected economically as a result of the Covid-10 pandemic
situation, in particular with regard to their turnover; and
iv. they have not already obtained liquidity guarantees under the rules of emergency law
applicable to the fields of sport and culture at the time the application is submitted.
26c. What are the conditions? And what amounts?
Covid-19 Loan: credit limit = 10 % of the turnover,
but in any case a maximum of 500’000.-.
i. Simple procedure, and these loans benefit from a
100 % federal government guarantee via the
guarantee organisations.
ii. The current interest rate is 0 % (Art. 13 para. 3 let.
a of the Ordinance on the Granting of Loans and
Joint Guarantees in Connection with Coronavirus[RS
951.261]) 27c. What are the conditions? And what amounts?
Covid-19 Loan: credit limit = above 500’000.- but in
any case a maximum of 20 millions.
i. Banking review the application first.
ii. The interest rate is currently 0.5 % (Art. 13 para. 3
let. b of the Ordinance on the Granting of Loans and
Joint Guarantees in Connection with Coronavirus[RS
951.261]).
28c. What are the conditions? And what amounts?
Note: the credit may exceptionally be increased to an
appropriate extent beyond CHF 20 millions if the
applicant is faced with very harsh consequences. The
increase must be approved by the The Federal
Department of Economic Affairs, Education and
Research (EAER) after discussion with the The Federal
Department of Finance (FDF) (Art. 4 para. 2 let. b of
the Ordinance on the Granting of Loans and Joint
Guarantees in Connection with the Coronavirus).
29d. How do I formulate my request and who do I send it to?
i. Fill in the CREDIT-COVID-19 form (Credit Agreement) available
at the following address: https://covid19.easygov.swiss/wp-
content/uploads/2020/03/COVID-19-KREDIT-
Kreditvereinbarung_V1.0_FR_20200324.pdf.
ii. Sign the form and send it scanned by e-mail or post to the
selected bank. For contact details, please refer to the list of
banks at https://covid19.easygov.swiss/fr/banques/.
304. Payment of AVS/AI/APG/AF contributions
Can I request an adjustment to my social insurance
bills?
- Employers and self-employed persons can request an
adjustment of the instalments of contributions;
To do so, you must inform your compensation fund of
the new amount of the annual payroll or annual income.
Also ask for a deadline for the payment of contributions
31In the case of payment by instalments, the
compensation funds shall waive interest on
arrears immediately and for six months.
No more reminders for unpaid contributions shall
be sent out. This measure shall apply with
immediate effect and until the end of June 2020.
32Other measures
- Asking your landlord to defer the payment of the
rent
- Claiming a rent reduction for default of the rented
thing (controversial)
- Request an extension of the deadline for
submitting the statement of account and paying
the tax:
https://www.moa.estv.admin.ch/moa/#/home
- Suspension of debt collection proceedings
33Thank you for your attention
Jonathan Bory et Florian Ducommun
Legal Factory
Avenue Tissot 2bis 34
1006 LausanneYou can also read
