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How will Brexit impact British cross-border workers in Switzerland?

Well over 320,000 cross-border workers commute into Switzerland daily from neighbouring EU countries. Here’s how Brexit on January 31st, 2020 will impact you.

How will Brexit impact British cross-border workers in Switzerland?
Photo: KENZO TRIBOUILLARD / AFP

With Switzerland not being a member of the European Union, British workers in the country have taken Brexit with a little less concern than many of their neighbours. 

With Brexit becoming finalised on Friday, January 31st, there are however implications that must be considered – particularly for cross-border workers. 

If you work in Switzerland but live in a neighbouring country, here’s what you need to know about Brexit. 

If you live and work in Switzerland, we’ve prepared and published a guide for how Brexit is likely to impact you

READ: Five things you should know if you're a cross-border worker in Switzerland

G-Permit workers

Cross-border workers will usually be conferred a right to work in Switzerland pursuant to what is known as a G-Permit. There are 325,291 G-Permit holders at last count, with permit holders mostly working in Geneva, Ticino and Basel. 

As reported by The Local in November of 2019, France, Italy and Germany provide the most cross-border workers. 

“The largest number — 85,100 —people came to Geneva from France, 67,800 crossed the border from Italy to Ticino, while 33,700 came from Germany and France to Basel, as the city straddles French and German borders.”

G-Permits are generally valid for a year at a time and require holders to return to their homes outside Switzerland at least once per week. 

Photo: KENZO TRIBOUILLARD / AFP

G-Permit workers after Brexit

The Swiss Citizens’ Rights Agreement, which comes in to replace the freedom of movement agreement after Brexit takes place, protects rights for UK citizens – including those of cross-border workers. 

Therefore, the rights of cross-border workers will be protected under the Swiss Citizens’ Rights Agreement. If you are currently a British cross-border worker with a valid G-Permit, your rights will be preserved. 

Workers without a G-Permit?

UK workers who have not yet exercised their rights to work as a cross-border worker may exercise this right during the transition period, provided they satisfy three conditions. 

These workers must have a permanent right of residence in a neighbouring state; have had a place of residence in the neighbouring state for at least six months; and must work within Switzerland. 

A comprehensive list of Frequently Asked Questions is provided here

What about residency, health insurance and other rights in EU countries?

Obviously, a right to work in Switzerland will not in and of itself confer you with the right to live in a neighbouring country – which can lead to problems regarding residency permits as well as health insurance and other issues. 

This will of course depend on the country in which you live.

The following links from The Local’s sister sites in France, Italy and Germany cover rights of British workers to reside in these countries. 

READ: Brexit: What do Brits in Germany need to think about before January 31st?

READ: Brexit countdown: What do Brits in Italy need to do before January 31st?

READ: Brexit: What do Brits in France need to do before January 31st?

Furthermore, as discussed in this report, health insurance rights will depend both on your residency status and how your insurance is currently being covered.

Please discuss this and relevant issues with your health provider and employer. 

Notice: As with any form of advice piece featured on The Local Switzerland, it is a guide for our readers only and does not amount to legal advice. Always seek legal advice on matters relating to immigration rights.

 

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IMMIGRATION

ANALYSIS: Will immigration to Switzerland continue to grow or could it slow?

In the past few years, an increasing number of foreigners have come to Switzerland, swelling the ranks of its population to 9 million people. Will this trend continue in the future?

ANALYSIS: Will immigration to Switzerland continue to grow or could it slow?

From a country of just 8 million people a decade ago, Switzerland’s population grew to over 9 million residents in 2023 — primarily due to more foreign nationals coming in.

“Switzerland has been in a situation of uninterrupted demographic growth for several decades, and this is explained in particular by the arrival of young migrants, who also contribute to the Swiss birth rate,” Philippe Wanner, professor at the Institute of Demography and Social Economics at the University of Geneva told The Local.

Just in the period between July 2022 and July 2023, for instance, more than 90,000 foreigners settled in Switzerland.

Now forecasts call for the population to swell to 10 million within the next decade — which has prompted the right-wing Swiss People’s Party (SVP) to collect enough signatures to launch a national vote in the near future to stop more foreigners from coming into the country.

The SVP argues that Switzerland’s infrastructure — including housing, healthcare system, and public transportation — would not be able to withstand so many more residents.

READ ALSO : Switzerland faces new anti-immigration vote 

This is based on the assumption that as many — or even more — foreigners will continue to move to Switzerland in future, attracted by salaries that are quite a bit higher than the wages they would earn for the same kind of work in their home countries.

But is there a credible scenario under which immigration will slow down?

According to Swiss demographer Hendrik Budliger, high immigration numbers in recent years “don’t necessarily mean the trend will continue.”

Certain things would have to happen at the political and economic level, however — both in Switzerland and abroad — for this scenario to become reality.

These are the main ones:

Fewer people leaving their home countries

One factor, according to Budliger, would be that other countries in Europe that are grappling with labour shortages as Switzerland is “will try to retain or bring back their workforce.”

In Italy and Portugal, for instance, “significant tax deductions are granted” to keep their workers from leaving.

“If more countries create such [financial] incentives to retain employees, Switzerland will become less attractive,” he pointed out.

Economist Manuel Buchmann agreed that  “EU nations themselves need this skilled workforce and are willing to do a lot to ensure that their nationals don’t leave the country.”

Fewer job vacancies in Switzerland

The country is suffering from an acute shortage of qualified workers — the main reason why many employers are hiring workforce from the EU and EFTA (Norway, Iceland, and Liechtenstein) nations.

If, however, Switzerland’s low unemployment rate should increase, or if suitable candidates can be found within the country, then companies will not recruit employees from abroad.

This is especially true as the Swiss law stipulates that a job can be offered to a foreign national only if no qualified candidates can be found in Switzerland.

Anti-immigration initiatives are accepted

In 2020, 61.7 percent of voters turned down SVP’s proposal to curb immigration from the EU.

This meant that Swiss companies could continue to recruit from those countries.

However, if voters decide to go the opposite way — for instance, by accepting the SVP’s latest anti-immigration proposal — then the government would have to implement measures to drastically curb the number of foreigners coming into the country.

READ ALSO: Why Switzerland can’t rely on foreign workers to fill its labour shortages

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