Federal Council strives for a Swiss solution for expenses
Published: Monday, Apr 1st 2024, 10:10
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Expenses are causing heated discussions in the negotiations between Switzerland and the EU. The Swiss side fears that the European expenses regulation could weaken domestic wage levels. The Federal Council is trying to find a solution with the EU Commission in order to convince the trade unions in particular of the agreement.
As part of the negotiations, the Agreement on the Free Movement of Persons between the EU and Switzerland is to be fully implemented. This also includes the free movement of workers. According to its negotiating mandate, the Federal Council wants to secure the current level of protection of wage and working conditions in the long term.
So-called posted workers would be affected by the new regulation. These are employees who are posted by an employer in an EU member state to work in Switzerland for a certain period of time. This period is limited to a maximum of 90 days.
Expenses are measured by country of origin
In order for these people to be allowed to work in Switzerland, they must be registered eight days in advance. This pre-registration period is to be reduced to four days, as agreed by the Federal Council and the EU Commission in the Common Understanding. The understanding forms the basis for the negotiations.
In terms of pay, the EU recognizes the principle of "equal pay for equal work in the same place". This is a minimum requirement. It means that posted workers must receive at least the local wage.
The situation is different for expenses. In the EU, the rates of the country of origin apply. The trade unions in particular fear that this could jeopardize wage protection in Switzerland. According to a resolution passed by the Swiss Federation of Trade Unions (SGB) in summer 2023, this could mean 1,000 francs less income per month for employees.
The Federal Council therefore wants to negotiate a regulation with the EU Commission that also takes into account the principle of "equal pay for equal work in the same place" when it comes to expenses. The EU Commission's mandate does not explicitly mention expenses. However, Switzerland could take certain measures to take account of the special features of its labor market.
Deposit only for defaulting companies
Currently, foreign companies in certain sectors have to pay a deposit before carrying out work in Switzerland. This deposit could be waived in principle with an agreement. It would only be due if the company had previously violated Swiss wage conditions.
The agreement on the free movement of persons should also include institutional elements such as the dynamic adoption of legislation. However, this would exclude changes that would weaken the working and employment conditions of posted workers. This refers to a so-called non-regression clause.
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