IMPACT – MEDIUM

What is the change?  Switzerland has announced additional language requirements for residence permit holders and applicants.

What does the change mean? Effective Jan. 1, non-exempted foreign nationals residing in Switzerland will be required to provide certified language certificates from an accredited institution. Applicants may need to demonstrate they meet the required language skills to apply for a residence permit.

  • Implementation time frame: Jan. 1, 2020.
  • Who is affected: B- and C-permit holders and applicants. The following individuals are exempted from the requirement if they meet one of the following qualifications:
    • Foreign nationals whose native language is German, French or Italian (the native language must be spoken/recognized in the canton of residence);
    • Foreign nationals who have completed primary school in German, French and Italian, even if the school was based outside Switzerland (the relevant primary school language must be spoken/recognized in the canton of residence) ;
    • Foreign nationals who have completed secondary school or university in German, French and Italian, even if the school was outside Switzerland (the relevant secondary school language must be spoken/recognized in the canton of residence); and
    • Foreign nationals who possess a language certificate that meets the requirements of the Common European Framework (CEFR).
  • Visas/permits affected: B- and C-permits.
  • Business impact: Foreign employees may need to enroll in an accredited language course in order to obtain or renew their residence permits.
  • Next steps: Foreign nationals who are not exempted and are unable to provide a certified language certificate may have their residence permit downgraded from a C-permit to a B-permit. In this case, the applicant would need to wait five years before applying for a C-permit again.

Background: Last year, Swiss authorities published new rules, which took effect in January, on the country’s language requirement for residence permits. Under the new rules, dependent non-EU/EFTA spouses of non-EU/EFTA B-permit holders and certain C-permit applicants are required to demonstrate a higher level of language proficiency in the primary language of their place of residence at the time of registration or most recent residence after 12 months in Switzerland. Some B-permit holders seeking renewal may also have to meet the same requirements. The most recent change specifies that applicants must provide a language certificate from an accredited language institute. 

Analysis & Comments: The change further clarifies language requirements and requires most non-native speakers of German, French or Italian to enroll in language courses before renewing or obtaining a residence permit. Employers should note that residence permit renewal applications can also be held to the same requirements. The relevant authorities have the final discretion to determine the group of applicants affected by the changes.

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This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? The State Secretariat for Economic Affairs (SECO) has published a national wage calculation tool online.

What does the change mean? Cantonal labor authorities will use the new tool to confirm that the salaries of posted workers match the legal minimal salary by canton.

  • Implementation time frame: Immediate and ongoing.
  • Who is affected: Companies sending workers on assignment to Switzerland and host entities.
  • Business impact: Companies, authorities and employees will be able to more easily and efficiently determine the typical salary for posted workers by canton.

Background: In Switzerland, the minimum salary required for workers depends on the profession, the sector of activity and location. Prior to the introduction of the new calculation tool, individual cantons hosted their own wage calculators. The new calculator provides a streamlined tool for companies and authorities to determine wage requirements throughout Switzerland.

Analysis & Comments: Employers should use the tool to determine the required minimum salaries of workers in Switzerland.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? Swiss authorities have published new guidance on the country’s language requirements for residence permits.

What does the change mean? Dependent spouses of non-EU/EFTA B-permit holders, B-permit holders seeking renewal and certain C-permit applicants may be required to demonstrate a higher level of language proficiency in the primary language of their place of residence at the time of registration or most recent residence after 12 months in Switzerland.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: B (temporary residence) permits and C (permanent residence) permits. The measures do not affect short-stay L permits, 120-day permits or stays under the online notification for up to 90 days.
  • Who is affected: Dependent spouses of Non-EU/EFTA B-permit holders, B-permit holders seeking renewal, foreign nationals seeking permanent residency (C permits) except for nationals from Austria, Belgium, Denmark, France, Germany, Greece, Italy, Liechtenstein, Netherlands, Portugal and Spain.
  • Business impact: Foreign employees and their family members may need to invest additional time and resources to satisfy new integration criteria in order to obtain or renew their residence permits.
  • Next steps: Employers are encouraged to review their procedures to make sure that employees who are affected by the changes comply with the new language and integration requirements when they apply for an initial work permit or renewal.

Additional information: In August, the Swiss Federal Council approved a set of changes on integration and language requirements for foreign nationals seeking residence permits. The State Secretariat for Migration has now released additional information on the requirements. While each canton may apply different requirements, the new language criteria are generally as follows:

  • Permanent residence (C permits) based on 10 years of residency will require A2 level in oral language skills and A1 level in written language skills.
  • Permanent residence (C permits) based on five years of residency will require a B1 level in oral and A1 level in written language. Nationals of Austria, Belgium, Denmark, France, Germany, Greece, Italy, Liechtenstein, the Netherlands, Portugal and Spain are exempt.
  • B residence permits based on family reunification will require an A1 or equivalent oral skills in the language of the place of residence. Proof of a language course demonstrating proficiency at the A1 level may be required if language skills are lacking.
  • Spouses and registered partners of Swiss citizens and of C-permit permanent residents will be required to meet integration requirements including A2 level in oral language and A1 level in written language.

Until the end of 2019, authorities in the Swiss cantons will have the authority to decide which certificates are acceptable to establish the required level of language proficiency. It is likely that beginning on Jan. 1, 2020, authorities will only accept officially recognized language certificates such as the “language passport.” Additional information can be found here.

Analysis & Comments: Switzerland’s new requirements were designed to improve the integration of foreign workers and their dependents. Employers and foreign residents are encouraged to stay informed of new language proficiency requirements for initial applications and renewals in their cantons, as implementation rules may differ from canton to canton.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT- HIGH

What is the Brexit news? The Swiss Federal Council has approved a temporary quota scheme that would allow U.K. nationals to apply for work authorization in Switzerland in the event of a no-deal Brexit.

What does the news mean? The temporary quota scheme offers a temporary solution for U.K. nationals who would no longer be covered by the Agreement on the Free Movement of Persons and would be considered third-country nationals. The Swiss government would offer 3,500 work permits—2,100 residence permits and 1,400 short-stay permits—to these nationals between March 30 and Dec. 31. The cantons would be notified on a quarterly basis of the maximum number of U.K. nationals they could admit.

  • Implementation time frame: March 30.
  • Who is impacted: U.K. nationals applying for work permits after March 30.
  • Business impact: Employers would be able to recruit U.K. nationals for employment in Switzerland between March 30 and Dec. 31.

Background: Last month, the Swiss Federal Council approved a bilateral Swiss-U.K. agreement to administer the status of U.K. nationals in Switzerland and Swiss nationals in the U.K. Under the agreement, U.K. nationals registered in Switzerland and Swiss nationals registered in the U.K. before the Swiss-U.K. agreement goes into force, as well as their dependents, will preserve their status under the EU-Swiss Agreement on the Free Movement of Persons. The agreement also covers cross-border workers in both countries, such as G-permit holders working in Switzerland.

Analysis & Comments: While the Swiss-U.K. bilateral agreement announced last month provided some certainty to employers as well as to U.K. and Swiss nationals residing in each other’s country, it did not provide details on immigration procedures for U.K. nationals arriving post-Brexit. The council’s decision to offer a temporary quota scheme for U.K. nationals provides additional clarity and gives employers the option to recruit and hire U.K. nationals following a no-deal Brexit. More details regarding the number of work permits available by canton are expected by the end of March as the Federal Department of Justice and Police will draft amendments to the Ordinance on Admission, Period of Stay and Employment.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? The Swiss Federal Council has extended the transitional period for Croatian nationals until the end of 2021.

What does the change mean? Croatian nationals will be subject to work permit requirements until at least 2021. Swiss permit quotas for Croatian nationals in 2019 have been set at 953 L permits and 103 B permits.

  • Implementation date: The first transitional phase was set to expire Dec. 31, 2018. Switzerland exercised its option to extend it until Dec. 31, 2021.
  • Who is affected: Croatian nationals seeking to work or live in Switzerland for longer than three months.
  • Business impact: Companies sponsoring Croatian nationals as local hires or assignees in Switzerland will remain subject to current work permit rules at least through 2021, including annual quotas, labor market testing, and checks on their working conditions.

Background: Under the country’s agreement on the free movement of persons with the European Union, Switzerland may impose a transition period before allowing Croatians full access to its labor market. The first phase of the transition runs through the end of 2018, now will be extended for three years and could be further extended by the Federal Council until the end of 2023. After that, if Croatian immigration exceeds certain levels, Switzerland may trigger a safeguard clause that would continue to put restrictions on Croatian workers for an additional three years.

Analysis & Comments: Croatian nationals may continue to enter Switzerland as visitors on the basis of nationality and without needing a visa, but those who want to work or remain for longer than three months will continue to be subject to work permit quotas.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

Medium Priority

What is the immigration news? Migration authority offices will be closed for roughly 10 days for the winter holidays. Exact schedules will vary from canton to canton.

Visa and work permit applications that are pending during the holidays may be delayed. Employers and foreign nationals should submit applications as soon as possible and account for potential delays in processing.

  • Implementation: Roughly Dec. 24 to Jan. 2.
  • Who is affected: Anyone seeking services from migration offices in Switzerland.
  • Processing:All in-country migration processing and other government services will be suspended.
  • Impact on business:Businesses may need to make minor adjustments to account for the holiday closures.

Additional information: Although most offices will be closed from Dec. 24 to Jan. 2, several cantonal authorities have announced varying holiday schedules. Please see below for specific closure dates by canton and authority.

Canton Labor Market Authority Migration Authority
Berne open on Dec. 27-28 and Jan. 2 open on Dec. 27-28 and Jan. 2
Basel open on Jan. 2 open on Jan. 2
Genève open on Jan. 2 open on Jan. 2
Lucerne open on Dec. 27-28 open on Dec. 27-28
Zug closed until Jan. 4 closed until Jan. 4

BAL Analysis: Employers and employees should plan to submit any time-sensitive applications ahead of the holiday closures. Please contact your local authorities for exact schedules and closure dates.

This alert has been provided by the BAL Global Practice group and our network provider located in Switzerland. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? The Swiss Federal Council has approved a package of measures that will impose new language and cultural integration criteria on foreign nationals seeking residence permits.

What does the change mean? Residence applicants may be required to sign an integration agreement and fulfill language and cultural integration coursework demonstrating the appropriate level of proficiency. Additionally, authorities may downgrade a C residence permit or revoke a B residence permit if the individual does not fulfill the integration agreement.

  • Implementation time frame: Jan. 1, 2019. A one-year transition period allows language skills to be proven with a certificate from other than an officially recognized language institute.
  • Visas/permits affected: B (temporary residence) and C (permanent residence) permits. The measures do not affect short-stay (L) permits or 120-day permits based on online notification.
  • Who is affected: Non-EU/EFTA nationals seeking residency in Switzerland. The language requirements will also affect EU citizens in some circumstances within the bilateral agreement on the free movement of people.
  • Business impact: Foreign employees and their family members will need to invest additional time and resources to satisfy new integration criteria in order to obtain or renew their residence permits.
  • Next steps: Migration authorities are expected to release guidance later this year that will provide greater detail on how the language and integration requirements will be implemented.

Background: The Federal Council approved the measures Aug. 15. Integration agreements will contain criteria for language skills, participation in work or education, respect for the Swiss constitution and adherence to public safety and order. Authorities may condition the issuance or renewal of residence permits upon the applicant’s signing of an integration agreement.

Language criteria are as follows:

  • Permanent residence C permits based on 10 years of residency will require A2 level in oral language and A1 level in written language skills.
  • Permanent residence C permits based on five years of residency will require a B1 level in oral and A1 level in written language. Current law requires an oral language level of A2.
  • Extension of B residence permits will require an A1 level or equivalent in oral language of the place of residence.
  • B residence permits based on family reunification will require an A1 or equivalent oral skills in the language of the place of residence. Proof of a language course demonstrating proficiency at the A1 level may be required if language skills are lacking.
  • Spouses and registered partners of Swiss citizens and of C permanent residents will be required to meet integration requirements including A2 level in oral language and A1 level in written language. Current law allows them to obtain a C permanent residence permit after five years of continuous presence.

BAL Analysis: Switzerland recently tightened eligibility criteria for citizenship applicants, and the new measures intend to improve the integration of foreign residents. Employers and foreign nationals should be aware of the upcoming changes and factor in the additional language and integration requirements when planning long-term assignments in Switzerland.

This alert has been provided by the BAL Global Practice group and our network provider located in Switzerland. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? The Swiss government has published a list of occupations where unemployment is high, triggering rules that require employers to advertise for and consider local candidates before placing a foreign worker in those roles.

What does the change mean? Employers seeking to hire into the listed professions must advertise exclusively with the local unemployment authorities for at least five days. Within three days of posting the advertisement, the public unemployment service will give the employer the names of job seekers registered with the service who may be likely candidates for the position.

  • Implementation time frame: The list is in effect from July 1, 2018 through Dec. 31, 2019.
  • Who is affected: Companies seeking to hire in designated job roles. See the list below.  
  • Business impact: Businesses should prepare for slightly longer timelines and difficulty in recruiting foreign workers for certain occupations. The list will be updated annually.
  • Next steps: Companies should consult the list and plan to fulfill advertising requirements and procedures for any of the listed jobs.

Background: Under the “national priority light” rules, employers are subject to labor market testing rules before hiring foreign workers in industries with a designated threshold level of unemployment. The threshold is 8 percent from 2018 onwards and 5 percent from 2020 onwards. The government will publish an updated list of affected occupations annually.

The first list was published May 23 and includes the following jobs:

  • Public relations and marketing specialists
  • Agricultural assistants
  • Certain professions in the watch industry
  • Warehouse keepers, storage workers
  • Industrial manufacturing workers
  • Concrete and cement workers, plasterers, insulation workers, and other professions within the construction industry
  • Courier staff
  • Telephone operators, telephonists, receptionists and porters
  • Domestic operations managers, service staff, household and laundry services employees, kitchen staff
  • Actors
  • Workers with unidentifiable manual employment, such as production workers, stone and glass processing workers.

Several exceptions to the advertising requirements apply, such as where the job is to be filled by a relative of a signatory of the company, the position is an apprenticeship or mandatory internship, the employee has been working for the company for at least six months, the job duration is less than 15 days, or the employer has already found a candidate through the public unemployment office.

BAL Analysis: While the list will not affect most high-skilled expatriate employees, it signals that Swiss authorities are tightening the rules to promote hiring of local workers in certain sectors, in keeping with the implementation of the 2014 voter referendum to restrict immigration.

This alert has been provided by the BAL Global Practice group and our network provider located in Switzerland. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? The Federal Council has decided to extend current restrictions on Bulgarian and Romanian workers for another year under a clause in the EU-Swiss Agreement on the Free Movement of Persons that allows Switzerland to impose quotas if immigration from the countries exceeds 10 percent of the average over the previous three years.

What does the change mean? The restrictions mean that quotas on B permits will remain in effect until May 31, 2019. Additionally, if the threshold is reached by that date, a quota on L permits will be reintroduced.

  • Implementation time frame: Immediate. The current quota of 996 B permits on the EU-2 countries (Bulgaria and Romania) will be extended until May 31, 2019. The quotas are allocated per quarter.
  • Visas/permits affected: B permits (and potentially L permits).
  • Who is affected: Bulgarian and Romanian nationals.
  • Business impact: Employers should factor in the quotas when planning recruitment of Bulgarian and Romanian nationals.
  • Next steps: The Federal Council is expected to pass legislative amendments in May regarding B permit quotas and at that time will also determine whether quotas will be introduced for L permits.

Background: Bulgaria and Romania acquired full free movement rights and open access to the labor market in Switzerland on June 1, 2016. However, under a safeguard clause (“ventilklausel”), Switzerland can impose quotas according to thresholds described above. Quotas on B permits under the clause have been applied since June 1, 2017. The maximum period that it can be applied is until May 31, 2019, at which time Bulgarian and Romanian workers will have full access to the Swiss labor market.

BAL Analysis: Employers recruiting Bulgarian and Romanian nationals should anticipate limitations on the number of B permits and possibly L permits. Additionally, beginning in July under a “national priority light” (“inländervorrang”) policy, employers will be required to report all job vacancies to labor authorities if the unemployment rate in the occupational category exceeds 8 percent as of July 1, 2018 (reduced to 5 percent as of Jan. 1, 2020). The Federal Council will publish the relevant employment rates.

This alert has been provided by the BAL Global Practice group and our network provider located in Switzerland. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

What is the change? Switzerland has implemented new requirements for naturalization applicants.

What does the change mean? The Swiss Citizenship Act, which took effect Jan. 1, changed the Swiss residence requirements and instituted new integration requirements for naturalization applicants. The naturalization procedures and conditions are the same for all foreign nationals, whether they are EU or non-EU citizens.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: Swiss citizenship.
  • Who is affected: Applicants for Swiss citizenship, specifically those who have resided in Switzerland on F, N or L permits. Years of residence while the applicant held one of these permits are either partially credited or not credited as part of the 10-year residence requirement.

Key changes: The changes to Switzerland’s citizenship requirements will touch on the following areas.

  • Residence in Switzerland. Applicants must have 10 years of residence in Switzerland, three of them in the last five years, before they may submit an application. Years of residence between the ages of 8 and 18 are counted twice. (Previously, this applied to years of residence between the ages of 10 and 20.) Before Jan. 1, naturalization applicants were required to have 12 years of residence, but the years of residence were counted in full if the applicant was in Switzerland with a permit, regardless of the permit type. The new law calculates years of residence depending on the type of permit, as defined below.
    • Years of residence when the applicant held a C, Ci or B permit are credited in full.
    • Years of residence when the applicant held an F permit are half credited.
    • Years of residence when the applicant held an N or L permit are not credited.
  • Integration requirements. Applicants must demonstrate a successful integration into Switzerland. Applicants must:
    • Have communications skills in one of Switzerland’s four national languages (German, French, Italian and Romansh). This translates to verbal skills of at least B1 and written skills of at least A2. Most cantons require that the language skills be in the language primarily spoken in the canton.
    • Have no criminal record, no debt or loss certificates and must pay taxes.
    • Respect the values of the Federal Constitution.
    • Either be employed or in educational training and not on social assistance programs.
      • Be familiar with Swiss living conditions, demonstrated through (1) knowledge of the country’s geography, history, politics, society; (2) participation in the social and cultural life of Swiss society; (3) and maintaining contacts with Swiss citizens.
      • Applicants who are married and/or have children must also be able to support the integration of their spouses and minor children.

Background: The Swiss Citizenship Act, or Federal Act on the Acquisition and Loss of Swiss Citizenship, was approved in June 2014 and implemented Jan. 1, 2018. Applications submitted before Jan. 1 are processed in accordance with the law as it stood when the application was submitted.

BAL Analysis: Those applying for Swiss citizenship should confirm that they meet the new residence and integration requirements before submitting their application. The changes to the residence requirement may delay some applicants who wish to apply for Swiss citizenship but who do not benefit from the changes to how years of residence are counted. Cantons frequently apply additional requirements so exact processes may differ depending on the applicant’s location.

This alert has been provided by the BAL Global Practice group and our network provider located in Switzerland. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.