CoronavirusGeneral Fields

General enquiries: Coronavirus – Can administrators of a corporation (SA) or limited liability company receive unemployment benefits?

The impact of coronavirus on companies no longer needs to be described. Many have to slow down or even cease their activity in order to comply with the containment measures ordered by the Federal Council. Employees will receive unemployment benefits, but will this also be the case for the administrators of a corporation or limited liability company? We answer this question here. 

First of all, this article explains what an administrator is in more detail. 

Swiss law states the following: “Anyone who has considerable influence on company decisions is, in principle, not entitled to unemployment benefits.”

This rule is in effect because a director can decide on the stability of his or her employment, unlike an employee. 

Thus, all those who play a role similar to that of an employer (shareholders, partners, directors, members of a governing body) will not receive unemployment benefits. 

However, each situation will be examined by the unemployment fund. 

It is obvious that in this coronavirus crisis, employers and administrator are not at fault for the cessation of their professional activity. However, the law does not provide for extraordinary cases. 

The Confederation has consulted on this matter. On Friday, 20 March 2020, the Federal Council announced financial support of 40 billion Swiss francs to support the industry.

Faced with this unprecedented case, the Confederation decided to compensate business leaders in the form of a loss of earnings allowance (the allowance offered during maternity leave or military service).

The directors will therefore receive state support. The details of this are not yet known, but you can without further ado entrust this research to one of our lawyers!

There are, however, private bodies at the cantonal level that offer compensation mechanisms to SMEs in need of liquidity. In Geneva, there is the Fondation d’Aide aux Entreprises (FAE), which offers direct loans with interest, to be repaid over 7 years. Our lawyers can examine these options for you!

Are you an administrator and would like to receive unemployment benefits? Our specialist lawyers will assess your situation and help you to be compensated! Lawrence offers a 50% discount on the price of its services in these difficult times. 


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