Corporate Immigration 2023

Last Updated June 27, 2023

Switzerland

Law and Practice

Authors



VISCHER AG has offices in Zurich, Basel and Geneva, where its attorneys, tax advisers and public notaries are organised under the direction of experienced partners in practice teams, covering all areas of commercial law. VISCHER's labour, employment and immigration law practice group provides the expertise of an employment and immigration law boutique with the service level of a large business law firm, and is noted for its combination of quality advice with real-world pragmatism. The employment and immigration law practice group currently comprises five lawyers, several junior associates and one paralegal.

Switzerland has a long tradition of immigration and a rather liberal immigration policy, at least for EU/EFTA nationals. Switzerland's immigration policy is indeed shaped very differently for EU/EFTA nationals and third-country nationals (generally including UK nationals since Brexit).

EU/EFTA Nationals

Switzerland is part of the Agreement of Free Movement of Persons (AFMP) with the EU and the EFTA. Under the AFMP, nationals of member states have the right to circulate freely and accordingly to work and settle within other member states' territory.

Third-Country Nationals

Third-country nationals, on the other hand, can only work or settle in Switzerland under relatively strict conditions – ie, through a quota system, with the so-called priority of Swiss and EU/EFTA nationals on the Swiss labour market. These conditions and the procedure in particular are regulated by the Federal Act on Foreign Nationals and Integration (FNIA) and the Ordinance on Admission, Residence and Gainful Employment (OARG).

In general, foreign employees and individuals are welcomed in Switzerland, with around 25% of the population of Switzerland being made up of foreigners.

Efforts are currently being made to facilitate access to the Swiss labour market for third-country nationals with a Swiss university degree (there are no quotas in this context).

In addition and since February 2023, the authorities may waive the applicability of the so-called priority of nationals (ie, the requirement that the employer proves that no suitable Swiss or EU/EFTA national could be found for the position) with regard to professions that are demonstrably affected by a shortage of skilled workers – eg, engineering professions and scientists and researchers in mathematical, scientific and technical fields.

Working Activities for up to Eight Days per Calendar Year

Except in certain business sectors, non-Swiss nationals can work for up to eight days per calendar year in Switzerland without the need for a work permit. Whether such stay requires a Swiss visa depends on the respective person's nationality. In this context, it is important to note that Swiss visas do not entitle the holder to work in Switzerland but only to enter the country.

Foreign nationals that wish to work in Switzerland for more than these eight days require a work permit before taking up gainful employment.

Notification Procedure

There is an exception to this rule for employees of the EU/EFTA labour market, who can take up employment, provide services or be posted to Switzerland for up to 90 days per calendar year under the so-called notification procedure (in German: Meldeverfahren). Non-EU/EFTA nationals also fall under this notification procedure if they are posted to Switzerland and they have been admitted to the EU/EFTA labour market for at least 12 months before coming to Switzerland.

Under the services agreement between Switzerland and the UK, companies based in the UK can also post employees to Switzerland for up to 90 days per calendar year under the notification procedure, provided they are UK citizens or have previously been admitted to the UK labour market for at least 12 months. This also applies to self-employed cross-border service providers based in the UK who are UK citizens.

Under the notification procedure, the work activity needs to be reported at least eight days in advance over a corresponding online notification system, but no formal work permit is required. However, the wage and working conditions customary in the locality and in the industry must be complied with in any case.

Work Permits

As a general rule, there are four main types of Swiss work permits:

  • a short-term work permit for a stay of up to four months (120-days permit);
  • a short-term work permit for a stay of up to 12 months (L-permit);
  • a long-term work permit for a stay of more than 12 months (B-permit); and
  • a work permit for cross-border commuters (G-permit).

To obtain the respective work permit and as a general rule, the employee needs to apply for the permit in the case of EU/EFTA nationals, while the employer needs to apply for third-country nationals.

Permits for EU/EFTA nationals are usually granted without further ado as soon as they have an employment contract with a Swiss employer and register with the competent Swiss authorities. Permits for third-country nationals, however, are only granted under various and rather strict conditions. To obtain a work permit for a third-country national, the employer needs to submit a reasoned application – together with supporting documents – evidencing that the requirements for the granting of a Swiss work permit are met.

Swiss immigration law does not recognise investment visas – ie, permits that are issued based on investments. However, under the FNIA, third-country nationals may apply for a self-employed work permit, which is granted if the Swiss authorities conclude that the self-employed activity may lead, among other things, to “substantial investments” and/or the creation of new workplaces to the benefit of the Swiss economy, and that the respective individual has sufficient financial means to carry out their activity.

Visitors must ensure that they hold the necessary Swiss visa to enter the country (if required) and can present a valid travel document (passport). In the case of a so-called Schengen visa, with which persons subject to visa requirements can enter the Schengen area for up to 90 days during 180 days, it is also important to ensure that these 90 days are not exceeded.

Furthermore, there are certain restrictions for business visitors. As outlined in 2.1 Sponsor-Based Employment Visas, foreign nationals may – as a rule and except for certain sectors – work in Switzerland for up to eight days per calendar year without the need for a work permit. In addition, certain business-related activities do not qualify as gainful employment, such as business meetings, theoretical and technical courses without any involvement in work processes or professional conferences. As the authorities have substantial discretion in determining whether an activity qualifies as gainful or non-gainful employment, it might be sensible to verify whether the activity is considered gainful employment or not on a case-by-case basis.

Remote work has become increasingly popular in recent years in Switzerland (due to the COVID-19 pandemic). However, there is no entitlement to remote work, unless such is contractually agreed or set out in employee regulations or similar.

Whether or not remote work is possible or at least feasible also depends on the location of the employer and, in particular, the nationality of the employee and their place of residence, as well as the activities to be carried out remotely.

Remote Work in Switzerland for a Swiss Employer

There is no legal requirement that (foreign) employees have to work on the premises of the employer. In fact, many Swiss employers allow their employees to partially work home-based. However, unless agreed otherwise, there is no entitlement to remote work and, at least for foreign employees working for a Swiss employer and residing outside of Switzerland, remote work often might not be possible due to social security and tax considerations.

Remote Work in Switzerland for a Non-Swiss Employer

EU/EFTA nationals

EU/EFTA nationals who perform remote work in Switzerland for a foreign employer without a direct impact on the Swiss labour market and without customer contact qualify as non-employed persons under the AFMP. If this remote work activity does not take place within the scope of a permit-free stay of up to three months during 180 days, they must apply for a residence permit, which is generally granted if they have sufficient financial means. What qualifies as sufficient financial means varies from canton to canton.

Third-country nationals

Third-country nationals that work for a Swiss or foreign employer in their Swiss home office and with an impact on the Swiss labour market always require a Swiss work permit. In the case of a foreign employer, the granting of such permit is generally subject to even stricter conditions.

Third-country nationals that work for a foreign employer in their home office in Switzerland and without an impact on the Swiss labour market require a permit without gainful employment (eg, a permit issued in the context of a family reunification procedure).

In such cases, special consideration must always be given to the social security and tax situation, which is generally independent of the assessment under immigration law.       

There are no language requirements to obtain a Swiss visa or work permit. There are, however, language requirements for the issuance of permanent residence permits (C-permits), which may be applied for after a B-permit has been held for a certain number of years (primarily depending on the nationality of the individual).

In addition, there are language requirements for spouses that are brought to Switzerland by a third-country national with a Swiss work permit in the context of a so-called family reunification procedure.

There are (currently) no requirements for medical certificates or vaccinations for Switzerland in connection with visas and work and residence permits.

Minimum thresholds/strict requirements must be met for certain sponsor-based employment visas (ie, Swiss work permits) in Switzerland. As a rule, unless the foreign employees fall under the AFMP, only highly qualified individuals will be granted a Swiss work permit – be it as an employee (ie, sponsored by a Swiss employer) or as self-employed individual. In addition, certain further conditions need to be met.

Employed Third-Country Nationals

To obtain a work permit for a third-country national, different conditions need to be met.

Highly qualified individual

Individuals with a degree from a university or institution of higher education and with several years of professional experience qualify as highly qualified individuals. In general, the authorities require a Master's degree, but a missing Master's degree can be made up for with, for example, many years of experience. The diplomas need to be filed in their original language with a translation thereof (unless they are in English, since English documents are accepted by most immigration authorities).

So-called priority of nationals

The employer needs to prove that the position has been posted for around four weeks to three months (depending on the canton) on jobs platforms, including in particular on the regional employment office (RAV) homepage and on the European EURES homepage, and that an application process has been run through but no suitable employee from Switzerland or the EU/EFTA could be found.

There are different exceptions to the applicability of the priority of nationals. The most important is likely that the priority of nationals does not apply in case of an intra-group transfer of members of senior management/executives and/or highly qualified specialists.

Overall economic interest

The foreign employee's employment lies in the overall economic interest of Switzerland. This means that their employment can be expected to have a positive impact on the Swiss economy – eg, through the generation of new workplaces or similar.

Local and industry-standard salary and working conditions

The salary and working conditions customary in the location and industry need to be observed. Put simply, this means that foreign employees are entitled to the same salary and working conditions as Swiss nationals.

Cross-border commuter permit (G-permit)

In addition, the following prerequisites must be met if a G-permit for a third-country national is to be obtained:

  • the individual must have a permanent right of residence in a neighbouring country;
  • they must have resided in this country and in the relevant border zone (as defined in the respective agreements) for at least six months;
  • they shall return to their place of residence in the relevant border zone at least once a week, and
  • they will be gainfully employed within the border zone of Switzerland – ie, the Swiss employer has its registered seat in the border zone.

Self-Employed Third-Country Nationals

Third-country nationals may be granted a work permit for self-employment under the following cumulative conditions:

  • the self-employed activity must be in the overall economic interest of Switzerland;
  • this activity is expected to generate enough income to cover the costs incurred in the business as well as the cost of living;
  • sufficient starting capital must be available, which is why a business plan or budgeted balance sheet must be submitted; and
  • other requirements must be met, such as quotas or the individual being a highly qualified specialist.

However, in practice, work permits for self-employment are very rarely granted for third-country nationals. Therefore, it is often a more sensible approach to establish a Swiss company (which is open to foreigners and is not expensive to do).

Under Swiss immigration law, an employment-based visa (ie, work permit) may be limited to an employer. This is particularly the case if the respective permit was granted within a specific project at an employer (eg, in the context of a project assignment), if it is linked to a condition or requirement under labour market law, or in the case of a cross-border commuter permit (G-permit).

Nevertheless and in particular for third-country nationals, a transfer to a new Swiss employer or a self-employed activity might not be possible without further ado. Third-country nationals who hold a short-term work permit (L-Permit) may only change their employer if there are important reasons and the new job is within the same industry and profession. Similarly, the switch from employment to self-employment is subject to a new permit for third-country nationals.

In addition, it is noteworthy that a change of canton is subject to authorisation for third-country nationals.

The processing time for applications for a work permit for third-country nationals (or EU/EFTA nationals that are posted to Switzerland for more than 90 days) is currently around eight to 12 weeks (once the application has been filed). It is important to note that third-country nationals are not allowed to work in Switzerland until they have received their work permit and the respective final decision of the competent authority, respectively, and have – if required – registered with the local residents authority or the migration office (depending on the canton).

EU/EFTA nationals who are employed at a Swiss employer are entitled to work in Switzerland. However, they have to register with the competent Swiss authority (residents authority or migration office, depending on the canton) within 14 days of arrival, and such registration should (from a strict legal point of view) be made before taking up the gainful work activity. In this case, the processing time for the issuance of the actual work permit is usually two to three weeks starting from the time of registration.

In general, there are no restriction on an individual's travel to Switzerland once an application for a Swiss work permit has been filed. However, the Swiss visa regulations always have to be observed.

As a rule, work permit processing times cannot be expedited under Swiss immigration law.

Once the competent authorities have approved the application for a work permit and the individual has come to Switzerland, said individual primarily has to register with the competent authority, normally being the residents authority or the migration office. Foreign employees must also ensure that they take out compulsory health insurance within three months of taking up residence (unless the option of exemption from this obligation exists and is used).

The typical cost of a sponsored employment visa for a third-country national (including a travel visa, if required) amounts to approximately CHF500–1,000.

Under Swiss immigration law, the costs for an employment visa (ie, a Swiss work permit) can be paid by the individual rather than the employer.

According to the provisions of the FNIA, an individual is particularly liable to prosecution if they violate entry regulations, if they stay in Switzerland unlawfully (namely after the expiry of the permit-free or the authorised stay) or if they carry out an unauthorised gainful activity. In such cases, an employee can be fined, imprisoned or banned (for up to five years) from entering all Schengen countries.

Employers, on the other hand, are particularly liable to a penalty if they employ persons who are not entitled to engage in gainful employment in Switzerland, or if they use cross-border services in Switzerland for which the service provider does not have a permit. They will be punished with a fine or imprisonment for up to one year. Prison sentences can even reach three years in more serious cases.

If the authorities detect such cases, they will take enforcement action. However, and with regard to unauthorised gainful employment, the authorities generally or at least often only detect the violation on the basis of indications regarding undeclared work or similar and inspections carried out against this background. Once violations are detected, the other authorities are informed – ie, the immigration, social security and tax authorities.

As outlined above, employers may not employ foreign nationals who are not entitled to work in Switzerland. Accordingly, an employer is obliged to ensure that all their foreign employees hold a valid Swiss work permit and/or that the other immigration law requirements are observed – eg, the notification procedure.

In addition, the employer has a duty of truthfulness and information towards the authorities. On the one hand, no false statements may be made in the context of the application for a work permit. On the other hand, relevant changes in the circumstances (eg, a dismissal) must be reported to the authorities.

Work permits may be revoked if they were obtained by providing false information or by concealing material facts. In addition, violation of the employer's obligations in this context may result in criminal penalties, again ranging from a fine to imprisonment.

As mentioned before, in Switzerland employers have a responsibility to prevent illegal work and are only allowed to employ foreign nationals with a corresponding Swiss work permit.

There is no statutory/strict Right to Work check process, but if an employee already works in Switzerland, the employer should require said employee to present their current work permit and check whether a transfer to a new employer is possible under this permit. If the employee has newly come to Switzerland, the employer has to ensure that the employee registers (in the case of EU/EFTA employees) or it has to submit a formal application to the competent authorities to obtain a work permit for the individual.

Based on this, the employment agreement should always be subject to the employee's right to work in Switzerland and the competent authorities issuing and renewing the respective work permit.

The following family relationships are recognised for the purpose of the issuance of a family reunification and a (work and) residence permit in this context.

EU/EFTA Nationals

EU/EFTA nationals who hold a Swiss (work and) residence permit may bring their spouse and their children or their spouse's children (who are under the age of 21 or receive support), as well as their parents and/or grandparents or their spouse's parents and/or grandparents, provided that the applicant supports them and will continue to support them (this option is not available for students).

In the case of relatives who receive support, the support must have already been provided before the time of the application for family reunification. In addition, the necessity for support must be proven and must be of a certain significance.

The following (additional) conditions must be met to obtain a Swiss (work and) residence permit in the context of a family reunification procedure:

  • recognised family relationship;
  • suitable accommodation (ie, the accommodation needs to reflect the typical living conditions of Swiss nationals – as a rule, the number of rooms is equal to the number of persons minus one); and
  • proof of necessary financial means if the individual who wishes to bring their family members to Switzerland is self-employed or is economically inactive.

Third-Country Nationals

Under the FNIA and with respect to third-country nationals, the spouse and minor children (ie, children under the age of 18) are recognised as family members in the context of a family reunification procedure.

The following (additional) conditions must be met to obtain a Swiss (work and) residence permit in the context of a family reunification procedure if the applicant is a third-country national:

  • the spouse or the child and the work permit holder live under the same roof;
  • suitable accommodation (ie, the number of rooms is equal to the number of persons minus one);
  • they do not financially depend on social assistance/have sufficient financial means;
  • as a rule, the spouse who is brought to Switzerland within a family reunification procedure must be able to communicate in the national language spoken at the place of residence (level A1; this requirement does not apply to unmarried children under 18 years of age), although for the initial granting of the permit it is sufficient if the spouse enrols in a corresponding language course; the meeting of this language requirement only needs to be proven toward the authorities in the context of the renewal of the permit – normally one year after the permit was granted; and
  • there are no grounds for revocation and no indications of abuse of rights.

The right to family reunification needs to be exercised within five years, and within 12 months for children over 12 years. The period begins with the granting of the Swiss work and residence permit or with the establishment of the family relationship (eg, marriage or birth).

Please note that the above explanations also apply to same-sex couples in a registered partnership.

Whether a dependant visa (ie, a permit issued in the context of a family reunification) is allowed depends on the circumstances in which the “dependant visa” was granted.

EU/EFTA Nationals

Spouses and children who entered the country in the context of family reunification are entitled to pursue gainful employment regardless of their nationality. This applies even if the EU national from whom they derive their right of residence has not been admitted for gainful employment. No additional work permit is required. However, relatives in the ascending line who enter Switzerland by virtue of family reunification do not have the right to work.

Third-Country Nationals

Spouses and children of third-country nationals who hold an L-permit have access to the Swiss labour market under the following conditions:

  • the work permit request comes from an employer;
  • the working and salary conditions of the employment respect the standards set by Swiss law; and
  • the spouse’s/partner’s personal abilities are taken into account.

Spouses and children of persons with a B- or C-permit, on the other hand, are entitled to pursue gainful employment and can take up employment without the need for an additional authorisation procedure/work permit.

The validity period of a spouse’s or children’s (work) permit is limited to that of the main holder – ie, the third-country national who brought their family to Switzerland.

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Trends and Developments


Authors



Walder Wyss Ltd. is one of the most successful and fastest growing Swiss commercial law firms. It specialises in corporate and commercial law, banking and finance, intellectual property and competition law, dispute resolution and tax law. Clients include national and international companies, publicly held corporations and family businesses, as well as public law institutions and private clients. It is a dynamic law firm with flat management structures and a team of more than 250 legal experts – all of whom have a high level of professional qualifications, international experience and excellent knowledge in many languages. Walder Wyss was established in Zurich in 1972 and has since grown continuously. With offices in Zurich, Geneva, Basel, Bern, Lausanne and Lugano, it represents a seamless one-stop shop for clients, providing personalised and high-quality services in all language regions of Switzerland.

Main Trend: the Swiss Immigration Authorities Continue to Take a Pragmatic Approach to Issuing Work Permits

Introduction

Swiss immigration policy has traditionally been marked by a pragmatic and flexible approach that allows companies to operate effectively in Switzerland.

Despite the recent worldwide economic downturn, the Swiss immigration authorities continue to take this pragmatic and flexible approach to issuing work permits, in order to ensure that Switzerland remains a country in which it is easy to do business and in which companies are able to obtain work permits for the highly skilled workers and specialists needed to carry out their business activities. Moreover, the number of permits that may be issued (ie, the quotas) was not reduced for 2023 (see Swiss immigration system, below).

However, the recent Credit Suisse debacle will likely have ripple effects across the Swiss banking and finance sectors, and could lead to major layoffs both at Credit Suisse and at Credit Suisse’s partners. Against this background, the Swiss immigration authorities may take protective measures to safeguard local jobs and become more restrictive with regard to work permits issued to companies active in the banking and finance sectors.

In this context, this article provides an overview of recently introduced new measures and practices facilitating the issuance of work permits to non-European Union (EU) and non-European Free Trade Association (EFTA) citizens that demonstrate the Swiss immigration authorities' pragmatic and flexible approach; it also provides a summary of other important trends and potential future trends.

Swiss immigration system

On 1 June 2002, the Agreement on the Free Movement of Persons (AFMP) concluded with the EU and the EFTA entered into force.

Since then, a dual immigration system has existed in Switzerland, with a stark difference between the requirements for issuing work permits to EU citizens and EFTA citizens, and those for everyone else (with certain exceptions, such as for individuals with settled status or those who benefit from family reunification).

It also should be noted that an employer who wants to hire a non-Swiss employee will generally apply for one of the two primary types of work permits:

  • a short-term permit (L permit), which is issued for up to one year, but can be extended or transformed into an ordinary permit; or
  • an ordinary permit (B permit), which is usually issued for at least one year, and may be renewed.

EU citizens and EFTA citizens

Under the AFMP, EU citizens and EFTA citizens benefit from special rights. In particular, in principle, they have a right to work in Switzerland, without additional conditions needing to be fulfilled. They may also start working as soon as the work permit application has been submitted and do not need to wait for approval. It should be noted that other rules currently apply to Croatian citizens (see Reintroduction of quotas for Croatian citizens, below).

Moreover, if they live in a neighbouring country (ie, cross-border employees), EU citizens and EFTA citizens may receive a cross-border permit (G permit) to work in Switzerland. With the exception of Croatian citizens, EU citizens and EFTA citizens are not usually subject to quotas in Switzerland.

It should be noted that the above does not apply with regard to posted workers, as the AFMP does not fully cover cross-border services.

As mentioned above, the number of permits that may be issued was not reduced for 2023; for 2023, the number of permits that may be issued to EU citizens and EFTA citizens posted to Switzerland is as follows:

  • short-term permits (L permits): 3,000; and
  • ordinary permits (B permits): 500.

Third-country citizens (ie, non-EU citizens and non-EFTA citizens)

In general, the following conditions must be fulfilled in order for third-country citizens to be granted a work permit:

  • the employment is in the economic interest of Switzerland (it creates new jobs, it will increase the company’s taxable revenue, etc);
  • a Swiss employer makes a request;
  • the quotas are respected;
  • no suitable candidates exist on the local market (which includes Switzerland, the EU and other EFTA countries) – in order to demonstrate that this condition is fulfilled, the employer will have to show proof that a job search was carried out;
  • the person is a manager, executive or specialist, or is otherwise qualified (ie, has the appropriate degrees, linguistic qualifications, additional training, etc, for the position);
  • the employee’s remuneration and working conditions will be standard for the place where the employee will be carrying out their employment activity; and
  • the employee shall have appropriate housing.

As the number of permits that may be issued was not reduced for 2023, the number of work permits that may be issued to non-EU citizens and non-EFTA citizens, with the exception of British citizens, is as follows:

  • short-term permits (L permits): 4,000; and
  • ordinary permits (B permits): 4,500.

Separate, special quotas exist for British citizens (see Brexit, below), and special quotas for Croatian citizens were reintroduced in 2023 (see Reintroduction of quotas for Croatian citizens, below).

It also should be noted that, in principle, third-country citizens may only receive a cross-border permit (G permit) to work in Switzerland if certain very strict conditions are met. In particular, they must:

  • have held a valid residence permit in the neighbouring country for at least six months;
  • fulfil the local market conditions mentioned above; and
  • live in certain bordering regions of the neighbouring country.

New measures and practices

Flexibility for sectors experiencing a shortage of skilled workers

As mentioned above, when employers want to hire non-EU citizens or non-EFTA citizens, they must generally demonstrate that several requirements are fulfilled, including that no suitable candidate can be found on the local market and that the candidate they wish to hire is suitably qualified for the position.

However, exceptions exist for sectors that are experiencing a shortage of skilled workers. Employers recruiting employees in these sectors do not need to show that no suitable candidate can be found on the local market, and benefit from more flexibility with regard to the authorities’ review of employees’ qualifications.

Given the current market conditions, the list of sectors benefiting from these exceptions was expanded as of 1 February 2023, and currently includes the following.

  • Managers in the following fields:
    1. information technology and communications;
    2. consulting;
    3. finance and insurance;
    4. machinery;
    5. electrical equipment and metallurgy;
    6. chemical and pharmaceutical production; and
    7. the food industry.
  • Engineers, scientists and researchers in the following fields:
    1. mathematics; and
    2. natural and technical sciences.
  • Information and communication specialists.
  • The following health professionals:
    1. medical specialists;
    2. medical assistants;
    3. specialised nursing staff (eg, surgical care, acute care, nursing care and emergency care); and
    4. radiology assistants.
  • Teaching staff at universities.

Simplified work permit approval procedure

As of 1 February 2023, ordinary work permit applications, including ordinary work permit applications for non-EU and non-EFTA citizens, are only subject to approval from the cantonal immigration authorities. Previously, approval was also required from the federal immigration authorities.

Intragroup transfers

Special exceptions apply with regard to certain intragroup transfers. In particular, the Swiss Federal Act on Foreign Nationals (FNA) and related ordinances stipulate that it is not necessary to show that no suitable candidate can be found on the local market in the case of an intragroup transfer of a senior manager or a specialist (ie, someone who has specialised knowledge and experience), although, in practice, the immigration authorities also require that this person was already employed by the group for at least one year.

In 2023, the federal immigration authorities updated their directives to state that the interpretation of this exception should be broadened to include managers and other individuals with significant responsibility and decision-making power within the company.

Other Trends

Brexit

Employers should be aware that British citizens who were not exercising rights under the AFMP on 31 December 2020 do not enjoy the special rights afforded to EU citizens and EFTA citizens under the AFMP; therefore, the ordinary requirements apply. Moreover, the ordinary restrictions apply with regard to engaging cross-border employees (eg, British citizens residing in France – see New measures and practices, above). In addition, the employee may not start working from Switzerland prior to receiving authorisation to do so (unlike EU citizens and EFTA citizens, who may start working from Switzerland as soon as they apply for a work permit).

Furthermore, there is a quota regarding the number of work permits issued to British citizens, which is separate to the quota applied to other non-EU citizens and non-EFTA citizens. For 2023, the number of work permits that can be issued to British citizens is as follows:

  • short-term permits (L permits): 1,400; and
  • ordinary permits (B permits): 2,100.

Reintroduction of quotas for Croatian citizens

As of 1 January 2023, there is once again a quota regarding the number of work permits issued to Croatian citizens.

This decision was made pursuant to the Safeguard Clause of the AFMP, which provides for a gradual opening of the Swiss market to Croatian citizens, and permits Switzerland to reintroduce quotas if the number of Croatian citizens applying for work permits reaches a certain threshold.

However, it should be noted that, as is the case for British citizens, a separate quota applies with respect to Croatian citizens. For 2023, the number of work permits that can be issued to Croatian citizens is as follows:

  • short-term permits (L permits): 1,007; and
  • ordinary permits (B permits): 1,150.

New rules for traineeships and apprenticeships

Indonesia

Switzerland has concluded agreements with 34 countries to facilitate the free movement of trainees. The most recent agreement is with Indonesia, pursuant to which Indonesian citizens between the ages of 18 and 35, with suitable vocational training, now may be granted work permits via a simplified procedure to carry out a traineeship in Switzerland. This traineeship may last a maximum of 18 months.

Ukraine

Individuals who fled the war in Ukraine and were granted special protection status (Protection Status S) already benefit from certain exceptions regarding work permits. In particular, it is not necessary to show that no suitable candidate can be found on the local market. However, the situation after this special protection status is lifted is not entirely clear, which has made some employers hesitant to employ individuals with this special protection status.

In March 2023, some clarity was provided with regard to individuals between the ages of 15 and 20 with this special protection status. If such individuals are enrolled in an apprenticeship, they may remain in Switzerland and complete their apprenticeship, even if this special protection status is lifted prior to the apprenticeship being completed.

Home office and cross-border employees

Technical and generational changes, greatly accelerated by the COVID-19 pandemic, have led to a rapid increase in home office use by employees. In this context, it is important for employers to keep in mind that when cross-border employees (ie, employees who live in a different country from the one in which their employer is located) make use of a home office, it is necessary to ensure that they have the proper work permits allowing them to carry out work from both countries.

The question of cross-border employees has particular importance for Swiss employers, as Switzerland’s geography (ie, a small, landlocked country) means that this situation comes up often.

A host of other issues that are beyond the scope of this article but still merit particular attention may arise when cross-border employees make use of a home office, including:

  • social security;
  • taxes;
  • governing law and jurisdiction; and
  • data protection.

Future Trends

Students

Switzerland is moving towards introducing measures that would make it easier for foreign graduates (non-EU citizens and non-EFTA citizens, as EU citizens and EFTA citizens may already do so) of Swiss universities to remain in Switzerland and work after graduation.

On 16 March 2023, a bill providing for this possibility was approved by the National Council (lower house of parliament). The bill now moves to the Council of States (upper house of parliament).

Data protection

Although beyond the scope of this article, in light of the importance of data protection rules with regard to cross-border employment relationships it should be noted that revamped data protection rules will enter into force in Switzerland on 1 September 2023.

Walder Wyss Ltd.

Seefeldstrasse 123
P.O. Box
8034 Zurich
Switzerland

+41 58 658 58 58

www.walderwyss.com
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Law and Practice

Authors



VISCHER AG has offices in Zurich, Basel and Geneva, where its attorneys, tax advisers and public notaries are organised under the direction of experienced partners in practice teams, covering all areas of commercial law. VISCHER's labour, employment and immigration law practice group provides the expertise of an employment and immigration law boutique with the service level of a large business law firm, and is noted for its combination of quality advice with real-world pragmatism. The employment and immigration law practice group currently comprises five lawyers, several junior associates and one paralegal.

Trends and Developments

Authors



Walder Wyss Ltd. is one of the most successful and fastest growing Swiss commercial law firms. It specialises in corporate and commercial law, banking and finance, intellectual property and competition law, dispute resolution and tax law. Clients include national and international companies, publicly held corporations and family businesses, as well as public law institutions and private clients. It is a dynamic law firm with flat management structures and a team of more than 250 legal experts – all of whom have a high level of professional qualifications, international experience and excellent knowledge in many languages. Walder Wyss was established in Zurich in 1972 and has since grown continuously. With offices in Zurich, Geneva, Basel, Bern, Lausanne and Lugano, it represents a seamless one-stop shop for clients, providing personalised and high-quality services in all language regions of Switzerland.

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