COVID-19 Update: loss of earnings insurance and insolvency
While the measures against the COVID-19 outbreak will gradually ease as from April 26, 2020, the Swiss Federal Council added new measures to those already presented in our April Newsletter (Newsletter - April 2020.pdf).
Loss of earnings insurance
On April 16, 2020, the Swiss Federal Council decided to extend the right to receive compensation for loss of earnings to self-employed persons indirectly impacted by the measures against the COVID-19 outbreak, provided that their annual income subject to social security contributions represents an amount between CHF 10'000 and CHF 90'000. They may benefit from daily allowances (capped at CHF 196 per day) for no more than 2 months, retroactively starting on March 17, 2020.
Measures in case of insolvency
On April 16, 2020, the Swiss Federal Council introduced a derogation to the duty to notify the judge in case of overindebtedness of the company, i.e. when the liabilities of a company are not covered by its assets, whether such assets are determined at going concern or liquidation values. The board of directors may decide not to notify the judge provided that such overindebtedness appeared after December 31, 2019, and there is a likelihood that such overindebtedness will end before December 31, 2020. The decision needs to be taken in writing and shall be substantiated and supported by evidence. This measure applies to companies limited by shares as well as limited liability companies, cooperatives and foundations.
Other measures were adopted to soften the rules relating to composition moratorium, especially by creating a "COVID-19 moratorium" to enable companies having an economic outlook to benefit from a quick and easy way to request a limited moratorium.Back