Covid-19 effects on recruitment: MLL’s analysis

The current Covid-19 crisis is having a serious impact on all branches of the Swiss economy. Various businesses in a wide range of industries had to shut down their businesses or face a rapid decline in demand and/or revenue. It’s important to point out that this crisis not only affects the existing workforce of the companies concerned, but also their recruitment. And in particular there are effects on recruitment processes, short-time work allowance, termination before taking up employment and effects on the trial period and home office. Concerning all these points, MLL answered some clients questions. Here we have selected a summary:

  • As for new employee residing abroad, Federal Council has decided to restrict entry into Switzerland to a large extent, therefore all foreign nationals who do not have a valid residence or work permit are denied entry.
  • Employees are entitled to short-time work allowance from the first day of taking up a job which, according to Swiss unemployment insurance, results in a contribution, provided the general conditions for this allowance are met.
  • Foreign workers with a place of work in Switzerland are also entitled to short-time compensation regardless of their place of residence and residence status, as long as they are subject to the Swiss social security system.
  • Termination is also permitted before the contractually agreed start of the job. According to prevailing teaching, the notice period applicable during the trial period should apply. Unless the parties have agreed otherwise, this is usually seven days.