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.

Context on the Swiss job market helps frame any career decision in Switzerland. Our gross-to-net salary guide shows what Swiss gross salaries look like after AVS, LPP and tax deductions. The salary negotiation guide covers how to use market data in offer discussions and which arguments work with Swiss recruiters. Our guide to working in Switzerland as a foreigner covers entry conditions, permit categories and practical relocation steps. The work permit guide explains B, C, G and L permit categories and processing timelines. For cross-sector salary benchmarks, the Switzerland salary guide covers all major roles and cities.

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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.

Are employees on fixed-term contracts eligible for short-time work (KAE)?

No. Employees on fixed-term contracts whose contract is due to expire are explicitly excluded from KAE eligibility (AVIG Art. 31). Other excluded categories include: business owners and shareholders who significantly influence the company's decisions (Inhaber), apprentices, and employees who have already received notice of termination. The exclusion exists because KAE is designed to preserve employment relationships that would otherwise be terminated. For fixed-term workers, the contract expiry is the natural end of the relationship.

What is the 13th month salary in Switzerland?

The 13th month salary in Switzerland refers to an additional monthly salary paid once a year, typically in December. It is included in annual salary benchmarks as standard: when a Swiss employer quotes CHF 120,000 per year, this normally means 13 monthly payments of approximately CHF 9,231 each, not 12 payments of CHF 10,000. The 13th month is governed by the employment contract or collective agreement (GAV), not by statute. It is subject to social contributions (AHV/ALV) and income tax. Always clarify with a prospective employer whether a quoted annual figure includes or excludes the 13th month.