Switzerland, an open country economically integrated with the European Union, is particularly concerned by matters of employment law with an international dimension. Cross-border workers, staff postings, contracts concluded with foreign employers or subsidiaries of multinational groups, cross-border teleworking: these situations raise complex questions about applicable law, court jurisdiction and coordination of social security systems. PBM Avocats has the expertise to assist employers and workers in these configurations in Geneva and Lausanne, two cantons particularly exposed to the challenges of international employment.
Applicable Law to the International Employment Contract: PILA
In Switzerland, the conflict-of-law rules in employment contract matters are set out in art. 121 to 122 of the Federal Act on Private International Law (PILA). The basic principle is attachment to the place of habitual performance of work: unless otherwise agreed by the parties, the employment contract is governed by the law of the State in which the worker habitually performs their work (art. 121 para. 1 PILA). This attachment corresponds to the solution adopted by most modern international conventions, notably the Rome I Regulation applicable in the European Union.
The parties have the option to choose the law applicable to their contract (art. 122 PILA), but this choice is subject to an important protective limitation: the worker cannot be deprived, by the choice of foreign law, of the protections afforded by the mandatory provisions of the law normally applicable to the contract (law of the place of habitual work). In practice, this means that an employer cannot circumvent the protective standards of Swiss law by stipulating the application of less favourable foreign law in the employment contract of a collaborator who habitually works in Switzerland.
Posting of Workers to Switzerland: The PWA
The Federal Act on Measures Accompanying the Posting of Workers (PWA, SR 823.20) is the central instrument for protecting workers posted to Switzerland by foreign companies. It requires these companies to comply with the minimum working and wage conditions applicable in Switzerland for the duration of the posting, in particular those set out in collectively binding collective bargaining agreements (art. 2 PWA).
In practice, a foreign company posting workers to Switzerland must: notify the competent cantonal authorities of the posting before commencement (except for short-term assignments benefiting from an exemption); comply with applicable Swiss minimum wages in the relevant sector; guarantee statutory working and rest time requirements; and cover travel, accommodation and meal costs according to local practice. Failure to comply with these obligations exposes the company to administrative sanctions and a potential ban on providing services in Switzerland.
The Agreement on Free Movement of Persons (AFMP) and the Labour Market
The Agreement on Free Movement of Persons (AFMP), which entered into force on 1 June 2002 between Switzerland and the European Union, grants nationals of EU and EFTA member states the right to settle and work in Switzerland under conditions equivalent to those of Swiss nationals. This freedom of movement applies to both employed workers and self-employed persons and service providers.
The AFMP has profoundly transformed the Swiss labour market, particularly in the French-speaking border cantons. It has led to a significant increase in the number of foreign cross-border workers — particularly in the construction, healthcare, hospitality and financial services sectors — and necessitated the adoption of the accompanying measures of the PWA to prevent wage dumping. The mutual recognition of professional qualifications, also provided for by the AFMP and its annexes, facilitates access to the Swiss labour market for EU nationals.
Coordination of Social Insurance and Cross-Border Contracts
Coordination of social security systems between Switzerland and EU/EFTA states is ensured by the European Coordination Regulations (EC) No 883/2004 and 987/2009, made applicable to Switzerland by the AFMP. These regulations establish conflict-of-law rules in social security matters, the cardinal principle of which is exclusive affiliation to a single national system at a time. As a general rule, the worker is affiliated in the State where they pursue their activity, regardless of their nationality or place of residence.
Cross-border workers — who reside in one State and work in another — are subject to specific rules. A cross-border worker residing in France and working in Switzerland contributes to the Swiss social insurances (OASI/DI/ELC, unemployment, accident insurance, LPP) and benefits from the corresponding services, subject to special regimes agreed bilaterally. Teleworking from the country of residence may modify these rules if the proportion of work performed outside Switzerland exceeds the thresholds provided for in the coordination agreements. PBM Avocats analyses these situations with precision to avoid double affiliation and coverage gaps.
Frequently Asked Questions on International Employment Law
Can my employer based in France impose French law on me if I work in Switzerland?
No. Under art. 121 of the Federal Act on Private International Law (PILA), the employment contract is governed by the law of the State in which the worker habitually performs their work. If you habitually work in Switzerland for a foreign employer, Swiss law is in principle applicable to your contract, regardless of any contrary contractual clause. The parties may choose another applicable law (art. 122 PILA), but that choice may not deprive the worker of the protections afforded by the mandatory provisions of the law of the country where they habitually work.
What rules apply to posted workers in Switzerland?
The Federal Act on Measures Accompanying the Posting of Workers and Monitoring of Minimum Wages Provided for in Standard Employment Contracts (PWA) requires foreign employers posting workers to Switzerland to comply with the minimum working conditions and wages applicable there (minimum wages under collectively binding collective bargaining agreements or standard employment contracts, maximum working hours, etc.). The foreign employer must notify the competent cantonal authorities of the posting before commencement according to the implementing ordinance (PWO). In case of breach, administrative sanctions may be imposed and repeat offenders may face a temporary ban on providing services in Switzerland.
How does social insurance coordination work for cross-border workers?
Coordination of social insurance between Switzerland and EU member states is governed by the Agreement on Free Movement of Persons (AFMP) and the European Coordination Regulations (EC) No 883/2004 and 987/2009, to which Switzerland is bound by the AFMP. The basic principle is affiliation to a single social security system at a time: as a general rule, the worker is affiliated in the country where they pursue their professional activity. A cross-border worker residing in France and working in Switzerland is therefore affiliated to the Swiss social insurances (OASI/DI/ELC, unemployment insurance, LAA, LPP) for their activity in Switzerland. Special rules apply to persons working in several States simultaneously.
Is my Swiss employment contract valid if I partially work remotely from abroad?
Cross-border teleworking raises complex questions regarding applicable employment law, social insurance and taxation. Since 1 July 2023, a multilateral framework agreement on social security for cross-border teleworking has been concluded at European level and extended to several States. For Franco-Swiss and Swiss-Genevese cross-border workers, specific rules from bilateral agreements allow a certain percentage of teleworking from the country of residence without modifying affiliation to social insurances. For tax purposes, however, double taxation treaties may limit the number of days worked from the country of residence. PBM Avocats analyses the specific situation of each worker and employer concerned.
What steps are required to have a foreign employment law judgment recognised in Switzerland?
Recognition and enforcement in Switzerland of a foreign decision in employment law matters is governed by PILA (art. 25 et seq.) or bilateral conventions depending on the State of origin. To be recognised, the foreign decision must notably: emanate from a court with jurisdiction under PILA criteria, be final and enforceable in the State of origin, not violate Swiss public policy, and have respected the essential rights of the defence. The recognition procedure is initiated before the competent cantonal court. For wage claims, ordinary enforcement proceedings are often faster and more accessible than a formal recognition procedure for a foreign judgment.