Picture from TAAC's collection "Blue" Jacek Żwiryn 2011

Sanctions increase in the Swiss secondment law

Sanctions increase in the Swiss secondment law

Sanctions increase in the Swiss secondment law

We would like to provide you with information about the sanctions increase in the Swiss secondment law up to 30.000 of Swiss francs since 1st April 2017.

Strengthening the Administrative Measures in the EntsG

The changes of the Federal Act of 8 October 1999 on the Minimum Conditions of Employment and Salary applicable to Workers Posted to Switzerland (Bundesgesetz vom 8. Oktober 1999 über die flankierenden Massnahmen bei entsandten Arbeitnehmerinnen und Arbeitnehmern und über die Kontrolle der in Normalarbeitsverträgen vorgesehenen Mindestlöhne in following referred to as EntsG), came into force on the 1st April 2017.

The Federal Assembly of the Swiss Confederation decided, that the sanctions for violating of the minimum wage and working conditions up to 5’000 francs are too little effective. With the increase of the ceiling of the administrative sanctions on 1st  April 2017 the implementation of the minimum wage and working conditions shall be more effective through their deterrent effect. In future, sending companies, which violate the Swiss minimum wage and working conditions have count with sanctions up to CHF 30,000. Alternatively, as a service lock will be used. In particularly serious cases the two penalties can also be cumulatively expressed.

  Infringement
Administration measures  
5.000 CHF for not guarantying of accommodation and alimentation
5.000 CHF lack of registration online, starting work earlier than 8 days after online registration)
30.000 CHF or prohibition  to offer services in Switzerland for a period of one to five years (service lock-in clause) or cumulatively in particularly serious cases for not guarantying of minimal work and remuneration conditions according to Art. 2 EntsG
30.000 CHF against employers who employ in Switzerland and who are in breach of the provisions on the minimum wage in a normal employment contract pursuant to Article 360a OR
prohibition  to offer services in Switzerland for a period of one to five years (service lock-in clause) violation of the obligation to provide information or  knowingly furnishing false information or refusing to provide information or not keeping the service lock-in on the territory of Switzerland;

opposing the control or making the control of the competent authority impossible;

not paying the administrative measures

Imposing the control costs wholly or in part on the failing company  
Criminal sanctions
Fine 40.000 CHF (already existing) violation of the obligation to provide information or  knowingly furnishing false information or refusing to provide information or not keeping the break in offering the services on the territory of Switzerland
Fine 40.000 CHF (already existing) opposing the control or making the control of the competent authority impossible
Fine 40.000 CHF (new) being not compliant with a legally binding service lock-in clause
Additionally the authority issuing a sanction shall provide a copy of its decision to the State Secretariat for Economic Affairs (SECO) and the relevant joint control body SECO maintains a list of the companies against which a sanction has been imposed in a final decision. This list is public.

Until 1st April in cases of light infringements, the authorities may refrain from prosecuting in criminal cases. This regulation is not binding anymore.

Shall you have any questions or require support, please do not hesitate to contact us.

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