April 19, 2013

Effective May 15, 2013, foreign nationals employed by a company having its registration in an EU/EFTA-member State* must make advance declaration of a seconded employees’ salary with the Federal Department of Justice and Police.

What’s Changed?

On April 17, 2013, the Swiss Federal Council amended regulations concerning the free movement of persons (Personenfreizügigkeit).  The federal law for adjustment of flanking measures (Bundesgestz zur Anpassung der flankierenden Massnahmen) is now being implemented to revise freedom of movement requirements for nationals of and companies registered in the EU/EFTA.

The Swiss Parliament has also has decided to reinforce measures for the free movement of persons and to amend the Secondment Act (Entsendgesetzt, EntsG) to include the control measures for deceptive self-employment by individuals from EU/EFTA-member states.

As a result, Parliament has decided that the salary of foreign employees employed by a company registered in an EU/EFTA-member country must also be declared in advance of the employee performing work in Switzerland.  The Swiss Federal Council has now applied the declaration of salary rule to the Assignment Regulation, as specified in the Secondment Act (Entsendeverodnung, EntsV).

ACTION ITEMS FOR EMPLOYERS

The agreement on free movement of labor between Switzerland and the EU/EFTA liberalizes the temporary, cross-border employment for a maximum period of 90 days per calendar year.

Employees assigned for a maximum of 90 days by an employer with a registered office within the EU/EFTA-zone are obligated to register but do not require a work permit.

Under the new regulation, EU/EFTA-registered employers are now obligated make advance declaration, under the notification procedure, the hourly gross earnings paid in Switzerland for every employee that they have assigned to Switzerland.

For companies registered in the EU/EFTA-member states, and for those individuals who are nationals of EU/EFTA-memberstates, are recommended to review with their Swiss immigration supplier the specifics for working in Switzerland for less than 90 days and/or for advance salary reporting requirements.

It is anticipated that this will enable the responsible Swiss regulatory body to conduct targeted inspections in the Swiss labor market and identify foreign workers paid less than the prevailing national wages.

Caveat Lector | Warning to Reader

This is provided as informational only and does not substitute for actual legal advice based on the specific circumstances of a matter. Readers are reminded that Immigration laws are fluid and can change a moment’s notice without any warning. Please reach out to your local Pro-Link GLOBAL specialist should you require any additional clarification. This alert was prepared by Glenn Faulk, Senior Manager, Knowledge Management. Pro-Link GLOBAL worked with our PLG | KGNM Correspondent Office in Switzerland to provide you this update.

*EU/EFTA-Member States:  Austria, Belgium, Bulgaria, Croatia (July 1, 2013), Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland (Republic of), Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom.

Information contained in this Global Brief is prepared using information obtained from various media outlets, government publications and our KGNM network of immigration professionals. Written permission from the copyright owner and any other rights holders must be obtained for any reuse of any content posted or published by Pro-Link GLOBAL that extends beyond fair use or other statutory exemptions. Furthermore, responsibility for the determination of the copyright status and securing permission rests with those persons wishing to reuse the materials. Interested parties are welcome to contact the Knowledge Management Department (km@pro-linkglobal.com) with any additional requests for information or to request reproduction of this material.