Part-time unemployed individuals must have income from part-time employment counted as interim earnings

Facts

The Cantonal Unemployment Insurance Fund of St. Gallen wrongfully demanded the repayment of CHF 5,842.40 in unemployment benefits received by the opposing party [M.] for the period from July 2008 to February 2009. This was because [M.] had a part-time job at company [X.] in addition to his main employment at company [S. AG] . The Federal Supreme Court confirmed that the income from this part-time employment must be counted as interim earnings, even though [M.] was partially unemployed. The lower court had rightly annulled the repayment order and remanded the case to the Unemployment Insurance Fund for a recalculation of the daily allowance for the mentioned months.

Considerations

The Federal Supreme Court stated that according to the applicable case law, the part-time activity continued by partially unemployed persons within the meaning of Art. 10 para. 2 lit. b UIA must also be classified as interim earnings. This practice does not fully correspond to the systematics of the law, as it effectively turns the partially unemployed person into a fully unemployed person. However, in view of the clear legislative materials, the Federal Supreme Court saw no reason…