Work Permits and Reporting Procedures
In the 2nd and 3rd parts of our series "Business trips in Switzerland and the EU", we looked at the basic principles of social security coverage (A1 certificate) and income tax liability (183-day rule and de facto employer). In this part, we will cover the key points relating to work permits and reporting obligations within the EU and Switzerland.
Work permits
Business trips to Switzerland
Within the framework of the free movement of persons, EU and EFTA nationals are generally allowed to work in Switzerland, but in most cases, they require a work permit. Depending on the specific case constellation, this may be a cross-border commuter permit, the Swiss registration procedure (up to 90 days), or the 120-day permit for business trips to Switzerland.
Individuals with a foreign employer can work in Switzerland without a permit for a total of up to 8 days per calendar year. However, if the employment contract was concluded with a Swiss employer and the person travels to Switzerland for meetings or to work, the 8-day exception does not apply, and a corresponding work permit must be obtained from the first day.
The specific regulations for work permits differ in detail not only according to the origin of the employee, the duration of the stay, and the activity in Switzerland, but also (of course) by canton.
Business trips to other EU countries
Employees with Swiss or EU/EFTA citizenship may generally work in other EU countries during their business trips without a work permit. However, the special registration regulations of the individual EU states must be observed (see below), which in some cases are in no way inferior to the complexity of work permits.
It should also be noted that employees who are third-country nationals are generally not allowed to work in other EU countries during their business trips without further formalities. If, for example, these employees are to carry out maintenance work on machinery or work on foreign construction sites, it is essential to clarify the regulations relating to the respective work permits of the country of assignment in the EU in advance.
Notification procedure
To reduce illegal labor and wage dumping, the so-called "Posted Worker Notification" was introduced within the EU. The legislation on "Posted Worker Notification" is implemented very differently depending on the country. While France and Austria (as with the A1) also impose rigorous sanctions for failure to submit the certificate, other countries are still very generous in their interpretation and link the need for notification to the company's industry sector or the employee's salary level.
In principle, companies are well advised to observe the country-specific guidelines on the "Posted Worker Notification" and to apply for the document before the employee travels abroad on business.
Conclusion
Business trips to Switzerland and other EU countries are and remain a complex issue. It should not be underestimated that travelers generally require a permit for short-term work in Switzerland.
Swiss companies should keep an eye on both the citizenship of their employees and the necessary reporting obligations when deploying employees in other EU countries. Non-compliance can result in considerable penalties.
It is, therefore, essential that companies seek appropriate support, inform themselves thoroughly about the applicable laws, regulations, and take appropriate measures to ensure compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.