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IMPACT – MEDIUM
What is the change? Switzerland will introduce new job notification requirements in July.
What does the change mean? Starting July 1, employers in sectors where unemployment tops 8 percent will be required to advertise open jobs to people seeking work through Switzerland’s Public Employment Service for five days before others can access the job notifications. The measure is part of Switzerland’s effort to promote the local workforce. The country will extend the requirement to employers in sectors where unemployment tops 5 percent on Jan. 1, 2020.
Background: Responding to the Swiss Parliament’s efforts to promote the local workforce, authorities have settled on a two-stage approach that initially will affect relatively few employers since unemployment is low through most of Switzerland’s economy. The building sector and certain executive and processing professions were among the areas where unemployment topped 8 percent in December of 2017. Figures show that unemployment topped 5 percent in December for machinists, hotel and restaurant workers, employees in the trade and sales sector and in the category for social and natural sciences and humanities.
BAL Analysis: While the change will likely affect relatively few employers initially, it is nevertheless a sign of the steps Switzerland is taking to help promote Swiss workers and could delay the hiring of foreign nationals in some sectors.
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? The Swiss canton of Neuchâtel has instituted a requirement that non-Swiss nationals provide an original long-form birth certificate, as well as a marriage certificate or related document when registering with local authorities.
What does the change mean? Foreign nationals registering with local authorities upon moving to Neuchâtel should be prepared to provide the appropriate document (see chart below) when completing their registration processes.
Background: Switzerland requires foreign nationals who move to the country to register with local authorities within 14 days of their arrival and before they begin working. The April 1 change requires registrants to provide one of the following documents:
Other required documents include copies of employees’ Swiss work contracts and original passports and two passport photos (for EU nationals only, as non-EU nationals are required to provide biometrics). In addition, employees must provide documentation confirming the employees’ arrival date and address in Neuchâtel (e.g., a copy of an apartment lease). Required certificates must be accompanied by a translated copy in English, French, German or Italian, if the original is in another language.
BAL Analysis: BAL is not aware of any other cantons that have instituted a similar requirement. Employers in all cantons should work with BAL, however, to ensure foreign employees are prepared for their registration appointment no matter where in Switzerland the employee and his or her dependents are registering.
Copyright © 2017 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? The quota for L permits for EU/EFTA nationals has been exhausted for the second quarter of 2017.
What does the change mean? New L permits for EU/EFTA nationals who are assigned to Switzerland but remain on foreign employment contracts will be available starting July 1. Each canton has its own procedures when quarterly quotas are exhausted. Extensions of L permits are not subject to quotas, and 120-day permits and four-month short-term permits are also unaffected by the exhaustion of quotas.
Background: Last October, Switzerland announced that it would not raise the quotas on EU/EFTA L permits in 2017, even though cantons and business interests had hoped for an increase. The annual quota for L permits for EU/EFTA assignees is 2,000, divided into allocations of 500 per quarter. The second quarter allocation has been exhausted. Cantons have implemented procedures in response to the quarterly exhaustion of quotas in recent years.
Contact your BAL professional for information on other cantons.
BAL Analysis: Employers assigning new EU/EFTA nationals on L permits should contact their BAL attorney to discuss their options in each canton.
What is the change? Switzerland has invoked the safeguard clause of the free movement agreement to impose work permit quotas on nationals of Bulgaria and Romania.
What does the change mean? For 12 months beginning June 1, Romanian and Bulgarian nationals will have restricted access to the Swiss labor market if they want to work under a B resident permit. B resident permits will be capped at 996 for the two nationalities for the year and will be distributed on a quarterly basis. Short-stay L permits are not affected, as there was no basis for invoking the clause for L permits.
Background: The Swiss government lifted work permit requirements for Bulgarian and Romanian nationals in April 2016, according to its agreement with the EU on free movement. Since that time (starting June 1, 2016), Swiss employers have been free to hire Bulgarian and Romanian nationals without applying for work permits and with only a municipal registration procedure necessary as the basis for their residence permits.
A safeguard clause of the Swiss-EU agreement allows Switzerland to impose quotas on Bulgarian and Romanian nationals if immigration exceeds a level that is 10 percent above the median of the previous three years. In 2016, migration from Bulgaria and Romania to Switzerland reached 3,300, doubling that of the previous year, while migration from other EU/EFTA countries declined.
The Federal Council invoked the safeguard clause for a period of one year. Under the agreement, Switzerland may invoke it until May 31, 2019.
BAL Analysis: Swiss employers hiring Bulgarian and Romanian workers should prepare for the possibility that quarterly quotas may fill up quickly in the coming year.
What is the change? The Swiss government has set work permit quotas for Croatian nationals under Switzerland’s agreement with the European Union on the free movement of people. Quotas will be set on Croatian nationals during a transition phase lasting through 2023.
What does the change mean? For the first year, ending December 2017, the work permit quotas for Croatian nationals are 543 L permits and 54 B permits.
Background: The Swiss government approved Protocol III of the Switzerland-EU agreement on the free movement of people effective Jan. 1.
For 2017, Croatian nationals will be subject to a quota of 543 L permits (for employment contracts of longer than four months but less than one year) and 54 B permits (for employment contracts of at least one year or an indefinite term).
During the transition, Swiss employers wishing to hire a Croatian national on a local employment contract (including short-term local employment of less than three months) must first show that they have made efforts to hire a local worker. Online registration is not permitted for local hires.
Croatian assignees (who remain employees of the foreign company) performing general services in Switzerland for up to 90 days per calendar year should register online eight days before the work start date; those providing structural and secondary contract work, gardening and landscaping, cleaning work or security service must hold a work permit before starting work. Employers hiring Croatians for assignment durations of more than 90 days must submit work permit approval similar to those for other EU/EFTA nationals; for durations longer than four months, employers must obtain a permit quota from the quotas reserved for EU/EFTA nationals on assignment.
The transition period runs through 2023. For the following three years, free movement of Croatian nationals will take effect, but Switzerland may impose limits if immigration from Croatia is excessive. Beginning Jan. 1, 2027, Croatians will have free movement and full access to the Swiss labor market.
BAL Analysis: Employers hiring and assigning Croatian nationals should be aware of the quotas and transition period rules, including local labor market testing. Additionally, technical problems are currently preventing assignees from using the online registration system and may not be resolved until March. Meanwhile, employers and assignees should submit registration forms.
What is the change? Switzerland will increase by 500 the number of B and L permits for highly skilled non-EU/EFTA workers in 2017. Permits for highly skilled EU/EFTA assignees will remain at 2016 levels.
What does the change mean? Companies can plan for a slight increase in the number of permits that will be available for non-EU/EFTA workers, but for the same number of permits for EU/EFTA assignees.
Background: B permits are work and residence permits based on employment contracts of longer than one year. L permits are issued to foreigners planning to stay in Switzerland for more than four months but less than a year.
Highly skilled workers from non-EU/EFTA countries will be capped at 3,000 B permits and 4,500 L permits, up 500 in each category compared with 2016 levels. The cap for assignees from EU/EFTA countries will remain the same: 250 B permits and 2,000 L permits will become available in 2017. Here’s a look at how the quotas have fluctuated in recent years:
BAL Analysis: Cantons and the business community had hoped for a boost in the number of positions available, and the increase in non-EU/EFTA B and L permits is viewed as a concession to their interests. Employers should nonetheless prepare for the likelihood that quotas will be reached in 2017, as demand for non-Swiss workers is likely to continue outpacing the number of permits available.
Copyright © 2016 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 – HIGH
What is the change? The quota for L permits for EU/EFTA nationals has been exhausted for the third quarter of 2016.
What does the change mean? EU/EFTA nationals who are assigned to Switzerland may need to wait until new quotas for L permits are available Oct. 1. Each canton has its own procedures when the quota is exhausted. The quota exhaustion does not affect 120-day permits or four-month short-term permits.
• Implementation time frame: Immediate and ongoing. • Visas/permits affected: L permits. • Who is affected: EU/EFTA nationals on assignment to Switzerland. • Business impact: Employers may need to adjust start dates and business schedules. • Next steps: Depending on the canton, employers may be able to apply for a temporary permit or a provisional approval to cover the period until Oct. 1.
Individual cantonal procedures. Cantons have implemented procedures in response to the quarterly exhaustion of quotas in recent years. Below are the procedures for major cantons:
• Zurich – Authorities will grant temporary permit approvals for one month. Applicants may then request an L permit for the period between the expiration of the month and Oct. 1. • Basel, Geneva – Authorities will make preliminary decisions on permits, allowing assignees to start work. Permits will be issued Oct. 1. • Ticino – Authorities will not issue preliminary decision or temporary approvals. Employers must wait until Oct. 1 for new L permits. • BAL Analysis: Employers are encouraged to contact their BAL professional for information on individual cantons and how best to plan for EU/EFTA assignees.
Follow us on Twitter: @BAL_Immigration About Berry Appleman & Leiden LLP Founded in 1980, Berry Appleman & Leiden (BAL) provides comprehensive global immigration services from seven offices across the U.S. and from offices in Geneva, London, Melbourne, Rio de Janeiro, São Paulo, Shanghai, Singapore and Sydney. BAL manages global visa matters and customized application approaches for work permits, business visas, and residence permits in more than 100 countries. With a single cost center for worldwide operations, BAL offers centralized management with regional and local support for the complete spectrum of global immigration matters. Source: Berry Appleman & Leiden LLP
When traveling to Switzerland, your nationality and the types of activities you will conduct during your trip will determine whether you may travel lawfully as a business visitor or if work authorization will be required. Please seek advice from your immigration counsel if you are uncertain about the specific types of activities that constitute business or work.
As a business visitor to Switzerland, you may engage in the activities below. While this list is not exhaustive and other activities could qualify as business, you may:
Nationals of the European Union, the United States and many other select countries are eligible for a visa waiver and are not required to obtain a visa to enter and conduct business activities in Switzerland.
Switzerland is a member of the Schengen Area, a free-travel zone comprised of 29 European countries. If your nationality is not eligible for a visa waiver in the Schengen Area, you will be required to obtain a Schengen C Visa prior to travel. Visa-waivered nationals, as well as those who are required to obtain a visa, are authorized to travel to Switzerland and throughout the Schengen Area. Please note that travelers may not spend more than 90 days within any 180-day period inside the Schengen Area.
The activities below, whether paid or unpaid, generally constitute work under Swiss law. This list is not exhaustive, and many other professional activities are considered work in Switzerland.
In limited circumstances, foreign nationals may engage in certain professional activities on a short-term basis without obtaining work authorization, although strict preconditions must be met. An individual assessment is required before deciding whether an exemption is applicable.
The requirements for work authorization depend on your qualifications, on the nature and duration of your work and on whether your employer has an entity in Switzerland. The most common types of work authorization for Switzerland are:
Some categories of foreign nationals are exempt from work authorization requirements, including those who have been granted permanent residency. In these cases, a legal assessment to determine the possibilities for work authorization exemptions should be obtained prior to traveling.
Inevitably, the legal and strategic considerations impacting visa selection, as well as visa waiver and work authorization eligibility, entail the careful consideration of many factors. We recommend that you consult with your immigration counsel before taking any course of action.
What is the change? The quota for L permits for EU/EFTA nationals has been exhausted for the second quarter of 2016.
What does the change mean? New L permits for EU/EFTA nationals who are assigned to Switzerland but remain on foreign employment contracts will be available starting July 1. Each canton has its own procedures when the quota is exhausted. Extensions of L permits are not subject to quotas, and 120-day permits and four-month short-term permits are also unaffected by the exhaustion of quotas.
Individual cantonal procedures:
Cantons have implemented procedures in response to the quarterly exhaustion of quotas in recent years. Below are the procedures for major cantons. Contact your BAL professional for information on other cantons.
Background: Last November, Switzerland announced that it would not raise the quotas on L permits in 2016, even though cantons and business interests had hoped for an increase. The annual quota for L permits for EU/EFTA assignees is 2,000, divided into allocations of 500 per quarter.
What is the change? The Swiss government has confirmed that beginning June 1, nationals of Bulgaria and Romania will no longer be subject to quotas and will be entitled to free movement and full access to the Swiss labor market.
What does the change mean? Like other EU nationals, Bulgarian and Romanian nationals will no longer need to apply for work permits to work in Switzerland on local employment contracts.
Background: The Swiss government was expected to lift restrictions on Bulgarians and Romanians, who currently make up less than 1 percent of the foreign resident population. Under a safeguard clause in the Swiss-EU agreement on the free movement of people, if immigration of Bulgarians and Romanians surpasses 10 percent over the median of the previous three years, Switzerland may reintroduce immigration quotas until May 31, 2019.
BAL Analysis: Beginning June 1, Swiss employers may hire Bulgarian and Romanian nationals on local employment contracts without seeking work-permit approval, and the employees need only to register with the municipality where they live before starting work.