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WORK PERMITS

Nine things you need to know about work permits in Switzerland

Living in Switzerland on a work permit or thinking of making the move? Here are nine things you need to know about permits in Switzerland. 

A Swiss passport. Photo by Claudio Schwarz | @purzlbaum on Unsplash
A Swiss passport. Photo by Claudio Schwarz | @purzlbaum on Unsplash

1. Are you European or non-European?

You do not have the same rights in Switzerland – where residence and work permits are concerned according to whether you are European or non-European.

As a non-European, you need a specific work permit to be authorised to work in Switzerland, even for your own company.

As a European not residing in Switzerland, you are authorised to work in Switzerland for up to 90 days in a year without a work permit.

In this article, the term “ Foreigner” will refer to a non-EU national.

2. The distinction between a work permit and a residence permit

A work permit allows you to work in Switzerland and different rules apply whether you are an employee or an independent worker. 

Residence permits allow you to stay in Switzerland but not to work there. You could benefit from such permit if, for example, you are a full-time student, you need medical treatment in Switzerland, or are a beneficiary of regular income without working.

EXPLAINED: What’s the difference between permanent residence and Swiss citizenship?

3. If you are a UK citizen

If you already had a work permit in Switzerland before Brexit, you can continue working here even after Brexit if you are still employed by a Swiss employer.

If you did not already have a residence or work permit in Switzerland before Brexit, you are treated as a non-European.

4. Can you live in Switzerland without working in Switzerland?

Permit for retired persons

If you are more than 55 years old and have strong links with Switzerland (for example, previous residence in Switzerland or regular visits, property in Switzerland, family members in Switzerland,etc), you can obtain a residence permit that only allows you to reside in Switzerland. You will need to prove that you have sufficient financial means and to declare that you will not undertake an activity which generates income.

EXPLAINED: How to get a visa to retire in Switzerland

Permit for medical treatment

You can be authorised to stay in Switzerland for the length of a medical treatment if you have sufficient financial means for the length of your stay and if your departure from the country is sufficiently determined.

Authorities will most likely ask for a medical report and a declaration from the medical institution indicating the length and purpose of the treatment.

Permits with lump-sum taxation

There are also possibilities for non-Swiss high net-worth individuals to reside in Switzerland with a negotiated lump-sum taxation paid annually to the tax authorities. This requires a tax ruling from the concerned canton of residence before the permit is issued. This permit does not allow the individual to work in Switzerland.

Student permits 

There are not considered “residence permits” per se. They do not count for the years of residence for a C permit or even for naturalisation,

5. Distinction between Cross-border work permits vs ordinary work permits

If you are a non-EU citizen, for both permits, your employer will need to prove  – that no Swiss or EU citizen with the same qualifications as you – was available to take the position.

The cross-border permit may be issued to you if :

  1. you have been living lawfully in a neighbouring state for at least two years and have been resident there for the last six months 
  2. You are employed in Switzerland in a region which allows you to return home every evening or at least once a week.
  3. The conditions a) to d) below are fulfilled.

How to apply for Swiss citizenship: An essential guide

The ordinary work permit may be issued by the Swiss cantonal authorities for the Foreign employee if the following criteria are met: 

  1. The employer has more Swiss and European employees than Foreign employees;
  2. The Foreign employee has skills that justify his employment;
  3. The Foreign employee will have salary which complies with local standards for a person with the same position as same qualifications;
  4. The hiring of the Foreign employee serves not only the economic interests of the Swiss company but also the economic interests of the concerned canton.

The economic interests are evaluated based on the number of employees, the business plan of the company, the sector of activity and its importance for the canton, the innovative nature of the activity for the concerned canton etc.

6. Inter-company transfer permits

This is one of the exceptions to the ordinary work permit process for Foreigners

For companies having business in in at least two other countries apart from the location of the head office (i.e. business services, communication services, environmental services, financial services), executives, directors and highly qualified workers can benefit from an inter-company transfer for 3-4 years.

7. Permit for independent activity 

Independent persons can apply for a work permit if they are setting up a company or investing in an existing Swiss company.

It is important to apply for the permit for independent activity before making the investment.

The cantonal authorities may grant the permit according to their discretion if:

  • The company’s business activity serves the economic interests of Switzerland;
  • The business complies with the local federal and cantonal regulations ;
  • The independent person will have a salary which complies with local standards;
  • The independent person has sufficient and autonomous financial means for his stay.

8. If I am a Foreigner (B permit or C permit) in Switzerland, can I seek a work permit for my wife and children?

Yes, with a B permit, you can request a permit for “regroupement familial” for your wife and minor children if you plan on living under the same roof in an accommodation which has the capacity for all family members. 

This application must be filed within a deadline of 5 years for the spouse and children under the age of 12.  For children above the age of 12, the application has to be made within a period of 2 years.

Freelancing in Switzerland: What foreign nationals need to know

The deadline begins to run from the date at which the Foreigner obtained his first permit (usually a B) or from the date at which he became entitled to a permit (e.g. the date of his/her marriage to a Swiss citizen).

An application made after this deadline is granted only in exceptional circumstances for “serious family reasons” which depend on the discretion of the federal and cantonal authorities.

This type of permit for the spouse allows him/ her to be employed or self-employed in Switzerland.

9. If I am a Foreigner with a B or C permit in Switzerland, can I seek a work permit for my siblings and/or my parents?

It is in principle not possible to seek a permit for your siblings or your parents under Swiss law. 

However, an exception can be requested from the authorities if for example, the parent is dependent on your financial support and has been for many years, there are no other siblings in the home country to take care of the concerned parent and/or the medical facilities in Switzerland are important for the wee-being of the parent and the parent speaks the local language and/or has some form of social or economic attachment to Switzerland.

READ MORE: The nine most surprising questions on Switzerland’s citizenship exam

Practical Tips

  • If you are a Foreigner do not try and apply for any permit  without the assistance of an immigration  lawyer because there is no “legal entitlement” to a permit and correcting a wrong application may end up costing you more than an initial application, which has been correctly filed.
  • If you plan on moving your family to Switzerland, do not miss the deadlines.
  • Think clearly about what kind of permit you wish to apply for and do not proceed on a “trial and error” basis which will be perceived as bad faith by the authorities.
  • Keep in mind that living or working in Switzerland without a valid permit constitutes a criminal offence in Switzerland. Similarly, a person that rents out his/her apartment to a person who is not staying in Switzerland with a valid visa or permit, also commits an offence under Swiss criminal law.

This article was prepared by Renuka Cavadini of Page & Partners. 

Page & Partners provides an introductory call of 20 minutes in English. We look forward to being able to assist you. 

Tél.+4122 839 81 50

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For members

WORKING IN SWITZERLAND

The pitfalls of Switzerland’s social security system you need to avoid

In most cases, Switzerland’s social benefits system functions well. But there are also some loopholes you should know about.

The pitfalls of Switzerland's social security system you need to avoid

The Swiss social security system has several branches: old-age, survivors’ and disability insurance; health and accident insurance; unemployment benefits, and family allowances.

This is a pretty comprehensive package, which covers everyone who pays into the scheme for a wide variety of ‘what ifs’.

As the government explains it, “people living and working in Switzerland benefit from a tightly woven network of social insurance schemes designed to safeguard them against risks that would otherwise overwhelm them financially.” 

But while most residents of Switzerland are able to benefit, at least to some extent, from this system, others don’t.

What is happening?

If someone becomes ill or has an accident, Switzerland’s compulsory health insurance and / or accident insurance will cover the costs.

However, a prolonged absence from work can become costly.

That is especially the case of people employed by companies that don’t have a collective labour agreement (CLA), a contract negotiated between Switzerland’s trade unions and employers or employer organisations that covers a wide range of workers’ rights. 

READ ALSO: What is a Swiss collective bargaining agreement — and how could it benefit you?

It is estimated that roughly half of Switzerland’s workforce of about 5 million people are not covered by a CLA.

If you just happen to work for a company without a CLA, your employer is not required to pay your salary if your illness is long.

You will receive money for a minimum of three weeks – longer, depending on seniority — but certainly not for the long-haul.

You may think that once your wages stop, the disability insurance (DI) will kick in.

But that’s not the case.

The reason is that DI can be paid only after a year after the wages stop. In practice, however, it sometimes takes several years of investigations and verifications to make sure the person is actually eligible to collect these benefits, rather than just pretending to be sick

In the meantime, these people have to use their savings to live on.

What about ‘daily allowance insurance’?

Many companies (especially those covered by a CLA) take out this insurance, so they can pay wages to their sick employees for longer periods of time.

However, this insurance is optional for employers without a CLA is place.

As a result, small companies forego it because it is too much of a financial burden for them.

And people who are self-employed face a problem in this area as well: insurance carriers can (and often do) refuse to cover people they deem to be ‘too risky’ in terms of their age or health status.

Critics are calling the two situations —the length of time it takes for the disability insurance to kick in and gaps in the daily allowance insurance—”perhaps the biggest failures of the social security system.”

Is anything being done to remedy this situation?

Given numerous complaints about the unfairness of the current system, the Social Security and Public Health Commission of the Council of States (CSSS-E) will look into the “consequences of shortcomings and numerous dysfunctions in long-term illness insurance.”

But not everyone in Switzerland sees a problem in the current situation.

According to the Swiss Insurance Association (SIA), for instance, “making daily sickness allowance insurance compulsory for employers would not have the desired effect. Due to false incentives, it would only exacerbate the upward trend in costs and premiums.”

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