Long-Term Work Assignments in Switzerland: Limitations and Implications

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By: Konstantin Schmid
Sending employees to Switzerland on an assignment can be an attractive option for employers needing specialised skills that are difficult to find locally, especially when local hiring is not feasible.
However, these assignments often have strict time limits, sometimes as short as 12 months, due to international contractual agreements. For a full list of Switzerland’s social security agreements, please refer to the official website.
Understanding the applicable limitations is therefore crucial when planning long-term assignments and potential extensions in Switzerland.
Agreements governing duration of assignments
The social security systems and legislations governing those systems are one of the major limiting factors for long-term assignments worldwide. Employees on assignment are expected to return to their home country and should therefore not be forced to pay into the social security systems of two countries during their time abroad, nor should their entitlements (e.g., retirement benefits) be affected by their assignment.
To prevent people who go on international assignments from being disadvantaged in their entitlements and contributions, Switzerland has entered into social security agreements with more than 50 countries, including the Agreement of the Free Movement of Persons with the EU, covering all EU member states. Bilaterally, Switzerland also concluded agreements with countries ranging from Albania to Uruguay.
For the duration of their assignment, employees from participating countries are exempt from these mandatory insurance obligations of their host country. This exemption can usually be claimed by showing a relevant document from the home country certifying that the employee continues to pay such contributions there while on assignment – e.g., the Certificate of Coverage from the US or the A1 Certificate from EU member states (see our blog on A1 Certificates for more details).
Practice in Switzerland
For most set-ups for assignments to Switzerland (not all), such proof of continued payments to the home country social security system does not need to be produced in order to obtain a work authorisation. However, it needs to be in place in case the authorities ask for it retroactively, for example during an inspection regarding the compliance with Swiss rules and regulations.
Further, if an employer wishes to extend an assignment beyond the contractually agreed maximum duration (usually five years), the approval will be at the cantonal authorities’ discretion and they would usually request that such proof is in place.
In addition to these considerations, the authorities may ask why a localisation of the employee is not an option for the business, given the apparent prolonged need for the employee to work in Switzerland. An assignment should not serve to bypass the rigorous hiring process for non-EU nationals on a local employment contract in Switzerland, so the authorities will want to be convinced that a continued assignment is the best way forward.
Therefore, it is advisable to plan for such contingencies well in advance; the justification for the continued assignment will need to be convincing, and the time to obtain the proof of continued payments to the home country social security system may range between a few weeks to a year, depending on the issuance country.
Employee considerations
From an employee’s perspective, there are additional considerations regarding long-term assignments. After spending many years in Switzerland and possibly with children growing up in the country, employees on assignment may consider applying for a permanent residence C permit to secure their status. Depending on the passport they hold, this may be possible after spending five years in the country (at the earliest).
Employees who spent this time on assignment may find themselves in a situation where the authorities are unwilling to consider (part of) their time spent in Switzerland towards that count. It is therefore important for employers and employees to be aware of these intricacies of long-term assignments to Switzerland and discuss them proactively to make sure expectations are aligned and the assignment can be a success.
Need to know more?
For further information on assignment options, requirements and limitations, as well as on any other Swiss immigration requirements, please contact Senior Consultant Konstantin Schmid at [email protected].
This blog was published on 5 September 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.
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