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WORKING IN SWITZERLAND

What to know about Switzerland and the UK’s agreement on recognising qualifications

The UK is no longer part of the EU after Brexit, which means British citizens lost many of the privileges they used to enjoy in Switzerland — and vice-versa. But a new treaty is set to eliminate some of the hassles on the job front.

Published: 15 June 2023 11:02 CEST
What to know about Switzerland and the UK's agreement on recognising qualifications
UK nationals will have their professional credentials recognised in Switzerland. Image by Stefan Schweihofer from Pixabay

On Wednesday, Swiss Economy Minister Guy Parmelin and the British Secretary of State for Business and Trade, Kemi Badenoch, signed an agreement on the mutual recognition of professional qualifications.

This pact officially validates UK-obtained credentials in Switzerland, and vice-versa.

Up until the United Kingdom left the European Union, its citizens benefited from the EU’s system of mutual recognition of professional qualifications, which is applied in Switzerland as well.

As a non-EU/EFTA nation, however, recognition of professional credentials requires a stricter administrative process. 

The agreement reached between Bern and London on Wednesday “enables citizens of both countries to take up employment in regulated professional activities”, the Federal Council said in a statement.

The UK hopes the move will “allow British companies to compete for more contracts in Switzerland in the long run, boosting UK services exports, growing the UK economy and encouraging Swiss investment into the UK”, according to Great Britain’s Department for Business and Trade. 

The Swiss Federal Council also pointed out that “mutual recognition agreements are needed to cover qualifications awarded in countries whose education system is comparable to Switzerland’s”.

The Council added: “The UK is an ideal partner for Switzerland as both countries have an outstanding education system.”

What happens now?

Unfortunately, the deal doesn’t come into force immediately. 

The Swiss Parliament still needs to ratify the agreement, which is expected to occur sometime in 2024, so no changes will be implemented until then.

What will it mean for Brits coming to Switzerland?

Thanks to high wages and a good quality of life, Switzerland is a popular destination country for work for people in many industries, whether its IT, banking and finance or pharmaceuticals. 

Foreigners coming from a non-EU/EFTA nation who didn’t study at a Swiss university or complete an apprenticeship in Switzerland often have to get their foreign qualifications recognised in order to work in Switzerland. 

For that they need a copy of the qualifications (possibly translated), while in some cases there’s a fee to pay. 

READ ALSO: How can I have my foreign qualifications recognised in Switzerland?

However, in future under the new deal Brits won’t need to do this. 

Do UK citizens benefit from other rights in Switzerland?

After Brexit, Brits are no longer part of the Free Movement of Persons Agreement that allowed them the same almost unlimited access to the Swiss labour market granted to EU/ EFTA nationals.

Their employment is now regulated by the quota system — the limited number of work permits accorded to non-EU citizens.

However, within that group, the British benefit from a separate quota that is not a part of the general pool: 3,500 permits are set aside for workers from the UK — 2,100 under a B permit and 1,400 under an L permit. 

Also, neither the qualifications recognition rule nor the permit quota system applies to British nationals who had moved to Switzerland before the end of the Brexit transition period (December 31st, 2020) — they will retain all their existing rights for residence and employment as EU / EFTA citizens.

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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.

Published: 24 April 2024 13:37 CEST
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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