The Framework Agreement on Telework will be signed by Switzerland
Switzerland will sign the Framework Agreement with effect from 1.7.2023. The FSIO recently published detailed explanations under this link and it is worth going through them (available in German, French and Italian):
https://www.bsv.admin.ch/bsv/de/home/sozialversicherungen/int/grundlagen-und-abkommen/telearbeit.html
The definition of the areas of application for telework is explained in detail therein. This Framework Agreement will make it possible to continue teleworking under the conditions defined in the agreement in the country of residence at a rate of less than 50%, without changing the social security subordination, but only if the country of residence concerned also signs the Framework Agreement.
The current status of the countries that will participate has been communicated and will be updated on an ongoing basis. It is not yet clear whether France and Italy, which are important for companies in Switzerland due to the large number of cross-border commuters, will participate. For countries that do not sign up, the normal subordination rules according to Art. 11 – 16 of Regulation 883/2004 will apply from 1.7.2023. This would mean that in principle a maximum of 24.9% telework can be carried out (special provisions such as officials etc. will continue to apply).
In both cases, it is a matter of working in several countries, although the requirements are not the same. It is clear that an A1 must be applied for in both cases. For normal multiple activities, the country of residence is responsible. For telework according to the Framework Agreement, it is the state in which the employer(s) is/are domiciled.
Postings within the scope of application of Regulation 883/2004 in the case of temporary telework (100%) to an EU / or EFTA country is possible
Until now, it was up to the compensation fund to decide whether to authorise postings to work in a holiday destination, for example. The responsible EU Commission has agreed to allow temporary telework.
Companies now obtain legal certainty in the area of social security when they temporarily send employees on temporary telework. In this case, too, an application by an A1 (Art. 12) is required.
What does this mean for the companies:
Detailed clarification of the individual case is necessary. If a person does not fall within the scope of application of Regulation 883/2004 or if the conditions for telework in the Framework Agreement do not apply, it must be carefully considered whether telework is permitted by the company or whether working in Switzerland is ordered for these situations.
All aspects must be considered at all times. Social security is only one element. Only through an overall assessment (work permits, posting notifications, local labour regulations, governing law, telework regulations in terms of the employer’s duty of care, taxes at the level of the employee and the company, restrictions on working in a regulated industry, insurance coverage during this activity, data protection, etc.) will companies know for whom and for how long they allow telework and in what form such arrangements are made and controlled. Weighing up the costs and benefits is also advisable in this case.
The topic of teleworking is covered in various seminars in German https://www.zulaufgmbh.ch/veranstaltungen-workshops/
You can contact me if you wish an inhouse training in English on these topics https://www.zulaufgmbh.ch/en/contact/
Mobile working of employees at home and abroad for Swiss companies
Teleworking and social security – are you ready?
Cross-border social security for HR and Payroll
Withholding tax cases and calculations in an international context
