Immigration
Switzerland | Spot checks and the importance of compliance
Summary
Switzerland’s reputation for maintaining high standards in labor and immigration practices is well-earned. The latest report from the State Secretariat for Economic Affairs (SECO) underscores the critical role that compliance with immigration regulations plays in upholding these standards. As Vialto Partners Switzerland, we recognize the importance of these measures and the implications for employers operating within the Swiss market.
The detail
A 20-Year Overview of Protective Measures
The SECO report, reflecting on 20 years of complementary measures to free movement, reveals significant strides in protecting workers from abusive wage and labor conditions. These measures, developed and continually refined through collaboration among federal and cantonal authorities, serve to shield both domestic and foreign workers from exploitation.
In Zurich alone, over 2,100 employers and 3,700 employees were scrutinized last year under these measures. These inspections, conducted by cantonal tripartite commissions (TPKs) and parity commissions (PKs), identified 805 cases of wage violations. Employers found non-compliant were mandated to rectify wage discrepancies, amend employment contracts and fined in some cases.
What Employers Can and Must Do to Comply
To ensure compliance with Swiss immigration and labor regulations, employers should adopt the following proactive measures:
Targeted Inspections for Effective Oversight
Zurich’s TPK employs a risk-based inspection strategy, focusing on industries with a higher likelihood of non-compliance. In 2023, sectors such as automotive, flooring, retail, machinery, event organization, and passenger transport underwent intensified scrutiny. This approach ensures that inspections are both effective and efficient, though it means the results don’t necessarily reflect the broader labor market conditions.
The outcome of these inspections underscores their value. They not only safeguard fair wage practices but also demonstrate the power of cooperative efforts between social partners and cantonal authorities to uphold labor standards. This collaborative framework aims to provide optimal conditions for both local and foreign workers, continuously enhancing the enforcement system at both federal and cantonal levels.
Zurich’s TPK employs a risk-based inspection strategy, focusing on industries with a higher likelihood of non-compliance. In 2023, sectors such as automotive, flooring, retail, machinery, event organization, and passenger transport underwent intensified scrutiny.
However, it is important to note that no industry is exempt, and spot checks can occur at any company in every sector. Based on our experience at Vialto Partners, these spot checks can happen unexpectedly (e.g. inspectors showing up at company’s reception desk), making it crucial for all businesses to maintain continuous compliance. We have recently noticed queries from the consulting and technology industries regarding unanticipated inspections, which were conducted thoroughly (e.g. checks on immigration and labour law conditions). This underscores the need for all businesses to maintain continuous compliance and to track records and employees (note contractors can also be targeted and service recipient will also have to comply by showing proper work permit checks have been performed). This approach ensures that inspections are both effective and efficient, even though the results may not fully represent the overall labor market conditions.
The outcome of these inspections underscores their value. They not only safeguard fair wage practices but also demonstrate the power of cooperative efforts between social partners and cantonal authorities to uphold labor standards. This collaborative framework aims to provide optimal conditions for both local and foreign workers, continuously enhancing the enforcement system at both federal and cantonal levels.
Combatting Undeclared Work and Enforcing the Posted Workers Act
Beyond wage regulation, the fight against undeclared work (Schwarzarbeit or travail au noir) and the implementation of the Posted Workers Act (Entsendegesetz or loi sur le détachement) are integral to Switzerland’s labor market integrity. The Office for Economy and Labor (AWI) is at the forefront of these efforts, penalizing violations of minimum working conditions and compliance requirements for foreign personnel posted to Switzerland.
In 2023, the AWI issued 435 administrative fines and 159 service bans, alongside conducting over 4,100 checks on businesses and individuals. These efforts unveiled numerous cases of non- compliance with reporting and authorization requirements.
Future Outlook
Looking at the current trends, we can expect a continued emphasis on stringent enforcement and regular updates to compliance measures. The collaborative approach between federal and cantonal authorities and social partners will likely expand, with more sophisticated strategies and technologies being employed to detect and prevent violations. Employers can anticipate more frequent and targeted inspections, particularly in high-risk industries, as well as increasing penalties for non- compliance. Staying abreast of regulatory changes and proactively enhancing compliance practices
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Ara Samuelian
Partner, Immigration Services
Soorej Mannancherril
Senior Manager, Immigration
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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