The corona-crisis has played havoc with our lives – and strongly affected the world of finance and the people who work in the market. The crisis isn't over and it also has an impact on people's holiday plans.
Working from home, video-conferencing, client-visiting over the phone – much of what was frowned upon a couple of months ago has become the norm by force majeure, so to speak. The virus known as Covid-19 has washed over our working lives and the financial market, drowning or altering beyond recognition habits and procedures that have been with us for as long as we care to remember.
And, as we are about to find out, this is affecting not only the world of work, but also the world off work, i.e. our holidays.
Postponing Isn't On
Credit Suisse for instance has told staff to use up half of their 2020 holiday credits by the end of August, according to a report by «efinancialcareers» last week.
A spokesman confirmed: «We have asked employees to use at least half of the annual holiday credits by the end of August this year.» In the current situation, it was more important than ever to take time out and fill your batteries, he added. And, of course: «We want to ensure that not too much of the holidays are kept until the end of the year, because it might not be possible to take them all at the same time.»
At bigger rival UBS, the situation is not too dissimilar, or as a spokeswoman said: «Managers and members of staff/teams are coordinating this – if possible, the wishes of staff are considered, as long as they are compatible with the needs of the business.»
Planning for the Whole Year
It isn't just banking where holiday planning has been turned upside down. A spokesman for Zurich insurance group said: «We encourage our staff to make holiday plans for the whole year in consideration with managers and the team to ensure both an optimal relaxation and also business continuity.»
Deloitte said that the company was monitoring the situation, focusing on the protection of staff, the support of clients and the resilience of the business: «As any other organization in the current situation, Deloitte is evaluating potential measures continuously – including the compensation of overtime and the orderly use of holidays.»
And this applies to more than just the company: Deloitte in April asked 1,500 people working and living in Switzerland how the virus was affecting their lives. The conclusion was: «About a third of staff in Switzerland had to cut their working hours; and as many are reducing holiday credits and overtime.»
Relevant for Balance Sheet Purposes
To reduce the number of holiday credits and overtime at a time when there is little work to do makes sense, not least because it helps the employer alleviate the balance sheet.
For holidays and overtime not taken by year-end, companies have to put money aside to cover for these at the going rate, because it is a debt toward the employee. Depending on the number of staff and the total of days outstanding, the money set aside can reach a very substantial amount.
The Civil Service Does It Differently
The story published by the «Tamedia» newspapers about the rules in the civil service may come as a surprise, given the mechanisms described. Government staff is allowed to move back holidays they have planned to take if they can't actually go on their holiday. The personnel administration of the civil service decided that the holidays currently didn't serve their dedicated aim of allowing people relax and recover, because traveling for the purpose of leisure wasn't possible. Naturally, the staff also had to take the business of the service into account.
On this background, managers at the government in Bern worry that they may not have enough staff at hand in the autumn to maintain the level of service required. The decision by the administration to allow staff to delay their holidays had prompted a lot of the employees to demand such delays.
