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IMPACT – MEDIUM
What is the change? The first-quarter quota for L permits in Switzerland has been exhausted.
What does the change mean? EU/EFTA nationals who are assigned to Switzerland but remain on foreign employment contracts may not be able to obtain L permits quotas until April 1. Options vary from canton to canton on how employers in need of L permit employees should proceed in the interim.
Background: Switzerland announced in November that it would issue the same number of L permits in 2016 as in 2015, even as a majority of cantons and business interests had hoped for a boost in the quota numbers. A total of 4,000 L permits will be available for all of 2016, and the first quota allocation of L permits was recently exhausted.
Procedures vary from canton to canton on how best to deal with the exhaustion of L permits—in some cases, EU/EFTA nationals may be able to start work even without a quota. In Zurich, for example, authorities will consider granting permit approval for a one-month period, after which applicants may apply for an L Permit for the second quarter. In Basel and Aargau, authorities will consider issuing a preliminary decision that allows assignees to start work before receiving a second-quarter quota on April 1.
BAL continues to examine procedures in other cantons, but in some cases it may be necessary to postpone start dates.
BAL Analysis: The exhaustion of first-quarter L permits after less than two months points to the limited number of permits the Swiss government has made available, as it continues to advance the country’s goal of favoring local workers when possible. Employers looking to recruit or hire EU/EFTA nationals on L permits should contact their BAL attorney to discuss the options available to them in their particular canton.
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 © 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.
What is the change? Swiss authorities have clarified how they will apply an exemption that allows foreign nationals to work in Switzerland for eight days per calendar year without work permits or registration requirements.
What does the change mean? Previously, it was unclear whether the eight days counted against each individual or also against each assigning company. Authorities have now clarified that for assignments from outside the EU/EFTA area, the exemption is available on an individual basis. For assignments from within the EU/EFTA, the eight-day exemption will be counted against each individual and their assigning company.
Background: Switzerland generally permits foreign nationals to work in Switzerland for up to eight days before they must obtain a work permit or be registered online.
Under recently clarified rules, the way the eight days will be counted depends on the country from which the employee is sent (regardless of the employee’s nationality).
For employees assigned from outside the EU/EFTA area (regardless of their nationality), the exemption applies to individuals. This means that they are permitted to work in Switzerland for eight days per calendar year before they are required to obtain a work permit, without limitation on the number of employees from the company using the exemption during the year.
For employees assigned from within the EU/EFTA area (regardless of their nationality and including non-EU/EFTA nationals who have lived in the EU/EFTA area for at least 12 months prior to the assignment), the exemption applies not only to individuals but also to assigning companies. This means that assigning companies can send one or more employees to Switzerland at the same time for up to eight days. However, once eight days are consumed, the company must register those employees and all other employees sent to Switzerland for the remainder of the year. Once registered, these employees can work for up to 90 days per calendar year (which also is counted per assigning company) before they must obtain a work permit.
BAL Analysis: While the rule will have the effect of requiring more employees sent from within the EU/EFTA to register in Switzerland, the online registration process is already in place for them, making it relatively easy for them to notify authorities of short-term work assignments compared to those sent from outside the EU/EFTA.
What is the change? Quotas for EU nationals for both long-term B and short-term L permits have largely been exhausted for 2015. Some cantons may have reserve quotas available, and short-term non-quota permits are possible.
What does the change mean? Employers wishing to send EU nationals on assignment starting in 2015 should contact their BAL representative to discuss feasibility.
Background: Since Switzerland lowered its quota numbers in 2015, there has been pressure on the caps on foreign workers – especially L permits for EU nationals, which have been oversubscribed in the past four quarters. Although cantons and businesses hoped the quotas would be raised in 2016, the Swiss government recently announced they will remain at the same levels.
BAL Analysis: Employers should work with their BAL attorney on possible alternative planning for EU nationals from now until January. Meanwhile, businesses should anticipate similar quota pressure in the coming year when planning assignments in Switzerland.
What is the change? Switzerland will issue the same number of permits for highly skilled foreign workers and for highly skilled EU/EFTA assignees in 2016 as it did in 2015.
What does the change mean? Companies should plan for the same levels of recruitment of foreign workers and EU/EFTA assignees as in 2015.
Background: B permits are work and residence permits based on an employment contract lasting 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 2,500 B permits and 4,000 L permits, the same as in 2015. The cap for assignees from EU/EFTA countries will also remain the same: 250 B permits and 2,000 L permits will become available in 2016.
The 2015 and 2016 quotas are down compared to 2013 and 2014.
BAL Analysis: A majority of cantons and business interests had hoped for a boost in the number of positions available, but the Swiss government decided that increasing the quotas would run counter to the country’s goal of favoring local workers when possible. Thus, quotas will remain unchanged in 2016. L permit quotas for EU/EFTA nationals were reached in the first, second and third quarters of this year. Employers should prepare for similar challenges in 2016 and contact their BAL attorney with questions about individual applications.
What is the change? Third-quarter quotas for L permits continue to show signs of excess demand in light of the government’s decision to lower the cap on EU nationals in 2015.
What does the change mean? In some cantons, L permits for EU/EFTA nationals have been exhausted for the quarter, and companies will have to wait until Oct. 1 to apply for new permits. However, the number of available permits varies from canton to canton and should be assessed on an individual basis.
Background: Swiss authorities significantly reduced the number of L permits for EU/EFTA nationals from 3,000 in 2014 to 2,000 in 2015. The effects are beginning to show in the oversubscription of the category. Last quarter, the quotas were also exhausted in several cantons.
BAL Analysis: As Swiss policies may continue to put pressure on available work permit numbers, employers should work with their BAL representative to explore the best options moving forward.
What is the change? Switzerland has exhausted second-quarter L permit quotas for EU nationals.
What does the change mean? Employees looking to hire EU nationals on an L Permit should follow procedures established in their canton on what to do next.
Background: Swiss authorities are admitting fewer highly skilled foreign workers this year than they did last year. The annual cap for L permits for assignees from EU countries dropped from 3,000 in 2014 to 2,000 this year. Second-quarter L permits for EU nationals have been exhausted and cantons are setting different procedures on how to handle the excess of demand.
To avoid rejections, applicants in Zurich are encouraged to withdraw all open requests and file them at the beginning of June for the third quarter, which begins July 1. In Basel, authorities have said they will establish a preliminary decision that will allow assignees to start work. Quotas will be issued July 1. And in Lausanne, applicants are encouraged to use the online registration procedure to submit applications at the beginning of June. BAL continues to investigate options in all other cantons.
BAL Analysis: Affected employers should contact their BAL attorney to find suitable alternatives.
What is the change? The number of L permits issued to EU/EFTA nationals on assignment for longer than four months has reached its limit in Zurich for the first quarter of 2015.
What does the change mean? Zurich has stopped issuing new L permits for EU/EFTA assignees until April 1; however, other cantons are continuing to approve the L permits and the numbers are changing daily depending on the jurisdiction.
Background: Last year, Switzerland reduced the quotas for L permits from 3,000 to 2,000 for EU/EFTA assignees. L permits cover work assignments longer than four months but less than one year. Work permits for stays of four months or less are not subject to quotas. In addition, EU/EFTA nationals working on local contracts and registered with Swiss Social Security are not subject to quotas.
For employees whose L permits expire before April 1, some cantons still allow extensions.
BAL Analysis: As the quota numbers are fluid and individual cantons do not report their numbers, employers wishing to send EU national assignees to Switzerland should contact their BAL attorney to determine whether an application has a chance of approval or will be kept by canton authorities until new quotas are available (or be rejected as in Zurich currently). Employees who must start work before April 1 can apply for permits for up to four months outside the quota restrictions. Employers should prepare to file applications for new L permits for the second quarter. In Zurich, applications for quota-subject permits may be filed one month before new quota numbers are available. Therefore, employers may begin to apply on March 1 in Zurich for second-quarter quota permits.
What is the change? Quotas on long-term work permits for most of the European Union are expiring.
What does the change mean? Nationals of 25 EU countries will be able to live and work in Switzerland on a Swiss employment contract without being subject to quotas.
Background: The Swiss government announced it will not renew numerical limits on work permits that were due to expire for 25 EU countries. On April 30, quotas that were introduced in 2012 on eight countries (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia) expired. On May 31, quotas introduced in 2013 on 17 countries (Belgium, Cyprus, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom) will expire. Bulgaria and Romania are still in transition and therefore subject to quotas on work permits until May 31, 2016 or later, depending on whether the Swiss government renews quotas after that date.
In February, Swiss voters narrowly passed a referendum introduced by the right-wing Swiss People’s Party to restrict immigration. The constitutional amendment will impose a quota system for EU and European Free Trade Association foreign workers, but the details are yet to be worked out. An implementation plan is scheduled to be completed by the end of June and a draft law is scheduled for completion by the end of the year. Until there is concrete legislation, bilateral agreements on free movement between the EU and Switzerland remain in effect.
BAL Analysis: Employers may plan assignments with certainty of the type of work permits (long term B or short-term L permit) they will be granted. Another benefit of the removal of quotas is that employees will be able to start work as soon as they register, rather than having to wait to find out if the B permit was granted. This change will also ease life for EU nationals on long-term Swiss contracts who will no longer be moved to short-term L permits (when B permit quotas were filled) that limited their daily activities. However, in light of the vote to impose quotas, BAL is closely monitoring developments in this area and will update as the legislation progresses.
What is the change? Following a constitutional amendment narrowly passed by Swiss voters to cap the number of foreign workers in Switzerland, the Federal Council has announced it will draft an immigration reform law this year.
What does the change mean? Workers from the European Union and European Free Trade Association, who previously enjoyed free movement, will now be restricted and subject to a quota system.
Background: On Feb. 9, Swiss voters passed an initiative aimed at restricting foreign workers from Europe. The measure, introduced by the right-wing Swiss People’s Party as an anti-mass immigration policy to maintain Swiss identity, passed by a slim margin of 50.3 percent. Three days later, the Federal Council announced steps to move forward on implementing the new measure. The constitutional amendment will impose a quota system on the number of foreign workers from EU and EFTA countries that companies can employ, but the details may take months to sort out.
“At this stage, it is not defined how big the quotas will be and what conditions need to be fulfilled to obtain a work permit for Switzerland,” said Nina Perch, an immigration attorney at Sgier und Partner GmbH in Zurich. Perch added that there are no immediate changes to the processing of work permits. The government will now move to write legislation implementing the measure, but experts predict it could take up to three years before changes are final.
“The Federal Department of Justice and Police (FDJP) will work with the Departments of Foreign Affairs (FDFA) and Economic Affairs, Education and Research (EAER) to draw up an implementation plan by the end of June. A draft law will be presented by the end of the year,” the Federal Council said in a statement. The Federal Council said it will also hold talks with the EU to discuss implications of the new Swiss law on the Agreement on the Free Movement of Persons (AFMP) and other bilateral negotiations. Switzerland is not a member of the EU, and foreigners make up about a quarter of its population. EFTA member states are Iceland, Liechtenstein, Norway and Switzerland.
BAL Analysis: While the details are not yet clear, businesses should plan for new restrictions on hiring of EU/EFTA nationals in Switzerland and coming changes to procedures for work permits.