Switzerland – Assignment-related expenses
Business Law Articles
By Eléonore Gallopin
Suter Howald Rechtsanwälte
Switzerland
The Swiss Federal Council just adopted several modifications of laws and ordinances in the field of immigration. In particular, one amendment is of importance for foreign service providers as it concerns the obligation to reimburse assignment-related expenses to the employees assigned to Switzerland.
Under current immigration law, foreign employers that assign employees to Switzerland must pay all assignment-related expenses (travel, board and lodging) during the whole duration of the assignment. As of 1 April 2020, the law will change and this obligation will be limited to the first 12 consecutive months of the assignment. However, for assigned employees who benefit from a minimum salary requirement based on a collective bargaining agreement, the obligation will remain unchanged and applicable for the entire assignment duration.
Foreign employers intending to stop reimbursing assignment-related expenses from the 13th consecutive month of assignment should communicate the changes to the affected employees and amend the assignment contracts accordingly.