Under normal circumstances, the conditions for temporary unemployment for white collar workers are stricter than for blue collar workers. Due to the corona crisis, however, an adaptation of the collective bargaining agreement number 147 of March 18, 2020 was implemented. This makes it easier for companies that do not have a collective bargaining agreement to apply for support as a company in difficulty.
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[close]The European Trade Union Confederation (ETUC) launched a special website tracking the responses of its national affiliates to the COVID-19 crisis. In addition to collective agreements concluded in order to protect workers across the EU, the website contains the ETUC’s briefing note providing an overview of national crisis-related measures covering issues such as short-time work, collective/individual redundancies, sick pay and social protection, and the protection of non-standard workers and the self-employed.
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[close]The Chancellor of the Exchequer announced that the government would help to pay wages of companies as part of a programme of support for working, self-employed and unemployed people, as well as businesses. The government will cover 80% of the salary of workers who would otherwise be laid off to a total amount of £2,500 (€ 2,832) a month.
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[close]The European Commission has approved three French state aid schemes to support the economy in the context of the coronavirus outbreak. Two schemes enable the public investment bank Bpifrance to provide state guarantees on commercial loans and credit lines, respectively, for enterprises with up to 5,000 employees. Another scheme provides state guarantees to banks on portfolios of new loans for all types of companies. This is direct aid to the companies that will enable banks to quickly provide liquidity to any company that needs it.
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[close]The government has announced a support package worth some €15 billion to support businesses and individuals as the economy enters a downturn. The broad range of measures aim to assist people and businesses suffering from the financial downturn due to the coronavirus pandemic. As part of the package the notice period for temporary lay-offs will be shortened from fourteen to five days, saving firms salary costs as they cut back. Workers laid off can claim unemployment compensation, provided they are a member of an unemployment fund. The waiting period before people can claim unemployment benefits will be eliminated, and freelancers will be allowed to claim unemployment benefits without shutting down their businesses.
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[close]The social partners have jointly submitted a proposal to the government to reduce the cost of employment, improve the flexibility of labour legislation and improve social security for workers who have become unemployed or been laid off. Their proposal includes a temporary reduction of employers’ pension contributions, postponement of payment of earnings-related insurance contributions, a temporary increase of labour law flexibility, and improvement of income security for the unemployed.
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[close]A uniform and simplified procedure has been put in place until 30 June for temporary unemployment applications, in order to better preserve jobs amid the restrictions on business resulting from efforts to combat the coronavirus pandemic.
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[close]The government is to introduce a package of economic measures of €2 billion aimed at mitigating the effects of the coronavirus. The state will also temporarily halt contributions to the second pillar pension fund. In order to prevent layoffs at businesses that are undergoing difficulties, the unemployment insurance fund will cover 70% of workers’ incomes for two months.
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[close]The government announced an additional CHF 32 billion (€30 billion) for the labour market, including tourism, culture and sports. This package is in addition to the CHF 10 (€ 9.5 billion) billion announced earlier to cushion the expected downturn caused by the virus. These measures are intended to safeguard jobs, guarantee wages and support the self-employed. The right to compensation in the event of a reduction in work will be extended to temporary workers and for people in an apprenticeship. Parents who have had to interrupt their work to care for their children after schools closed can claim compensation.
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[close]Due to the COVID-19 pandemic many employees cannot work. Employees who have been quarantined receive sickness benefits, which account for 60% of their daily earnings, based on an average. Trade unions are striving to increase them, so far without a concrete result.
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