Business Traveller in Switzerland - Work permits and opportunities

Author: Friederike Ruch , CONVINUS global mobility solutions

Switzerland plays a very important role in the global economic system. Despite its relatively small geographical size and a population of just under 9 million, the country is of great international importance. This is due to its stable economy, strong financial sector, well-known political stability and neutrality, and its great innovative strength (Switzerland is always ranked among the top 3 most innovative countries in the world in the various annual international rankings). Switzerland is not only an important financial centre, but also a centre for many internationally active companies from a wide range of sectors. Due to the very business-friendly and reliably stable legal and tax framework, a large number of international companies and groups have their international or European headquarters in Switzerland, for example.

As a result, the topic of business travellers is also high on the agenda of many companies. A business traveller is a person who is employed in one country and works in another company within the group on a daily or weekly basis.

The first step is to check to what extent a business traveller needs a work permit in Switzerland for their work. There are a few details to consider here. In principle, if the activity can be classified as gainful employment, a work permit is also required.

From an authorisation law perspective, there are two main types of authorisations that take centre stage:

• 120-day permit for all nationals
• Registration procedure for all EU and EFTA nationals and for non-EU/EFTA nationals with a minimum residence of 12 months in an EU/EFTA member state

120-day permit in Switzerland

The 120-day permit is a special work permit in Switzerland that is issued to persons who work temporarily in Switzerland and do not exceed a maximum stay of 120 days within a 12-month period or a year with several entries and exits. This permit is intended in particular for temporary or project-related work and enables foreign workers to work in Switzerland flexibly and at short notice.

In order to obtain a 120-day permit, certain requirements must be met, and a work permit must be obtained. The process for obtaining such a permit can take between 3 and 8 weeks, depending on the period and canton.

The necessary prerequisites for this are

• Compliance with the relevant Swiss salary (median)
• The employee must hold a specialist or management position in the company.
• The employee must be a specialist. This is assumed by the authorities if a person has a university degree and professional experience of at least 3 years after graduation or if a person does not have a university degree but has at least 10 years of professional experience.
• The nationality of the employee is irrelevant in this case.

The advantages of this type of permit are that the employee can enter and leave the country flexibly on the 120 days authorised. They simply have to ensure that they do not exceed these days.

For non-EU/EFTA nationals who do not hold a residence permit in an EU/EFTA member state, the Schengen regulations must also be observed. This means that they must also ensure that they do not stay in the Schengen area for more than 90 days in any 180-day period.

However, the 120-day permit obtained is only valid for one place of work. For persons who are to work in several locations in Switzerland within the scope of the permit, a corresponding additional permit must be obtained. The work permit must be applied for by the employer abroad and he can apply for as 120-day permits for as many employees as he wishes to employ in Switzerland.

The reporting procedure

The registration procedure can also be used for business travellers who are employed by an employer based in an EU/EFTA member state. However, there are a few aspects to bear in mind.

Prerequisites:

• Employer must be based in an EU/EFTA member state
• Compliance with the relevant Swiss salary (lower quartile)
• The employee's nationality must either be an EU/EFTA nationality or the employee must have been resident in an EU/EFTA country for at least 12 months and be able to prove this with a residence permit.

The authorisation process for the notification procedure is simpler compared to the 120-day permit, as the application is made online. However, a foreign employer can only use the notification procedure for a maximum of 90 calendar days and must observe an 8-day lead time for notification.

Both authorisation procedures have different advantages, which should be used accordingly in practice. However, this requires good planning of operations in Switzerland.

In addition to the legal aspects of authorisation, there are also tax and social security aspects to consider, regardless of the type of authorisation chosen.

• Social security: The employee should obtain the A1 or the certificate of posting before travelling to Switzerland for the first time, provided that a corresponding social security agreement is in place. If there is no social security agreement, there may be an obligation to pay social security contributions in Switzerland.
• Tax liability: As a rule, there are no tax consequences for business travellers in Switzerland unless the conditions (stay of less than 183 days in a calendar year, no salary payment from Switzerland and no costs borne at company level in Switzerland) in the 183-day rule in the relevant double taxation agreements are not met or there is a de facto employer in Switzerland.
• Labour market checks: As the 120-day permit is subject to a labour market check at the time of application, the majority of labour market checks are carried out on persons with a registration procedure in Switzerland.
• Compliance with the Swiss wage level: This is of central importance for both types of licence. Different tools and calculation bases are used for this depending on the canton. The most frequently used tool is the so-called wage calculator: https://entsendung.admin.ch/Lohnrechner/home

Conclusion

The 120-day permit is a practical solution because there is no numerical restriction, and the employee can use it flexibly after obtaining it. After expiry, a new 120-day permit can be obtained, so there is no limit in this respect either. The notification procedure is a good alternative for short-term assignments and if the employee is not a specialist.