France Pressures Switzerland on EU Frontalier Unemployment Reform (cross-border guide)

Context

In brief French Labour Minister Jean-Pierre Farandou intends to put pressure on Switzerland to implement the new European agreement on unemployment benefits for cross-border workers. France will lose €860 million a year under the current system. * The agreement provides that in the future the benefits will be paid by the country in which the work is carried out and no longer by the country of residence.

Key Facts Minister: Jean-Pierre Farandou Amount lost for France: €860 million per year * New Europe Agreement: Unemployment benefits for cross-border commuters paid by the country where they work

The issue of unemployment benefits for cross-border workers is a very important issue in the Ticino region, where many Italian and French workers go every day to work. Currently, unemployment benefits are paid by the worker's country of residence, but the new European agreement provides that they are paid by the country where the work is carried out.

According to data from the State Secretariat for Economic Affairs (SECO), in 2022 around 35,000 Italian and French cross-border commuters worked in Switzerland, of which around 12,000 in the canton of Ticino alone. Municipalities such as Chiasso, Mendrisio and Locarno are among those with the highest number of cross-border commuters.

The current system entails significant costs for France and Italy. For example, it is estimated that France loses around €860 million per year due to the fact that unemployment benefits are paid by the country of residence. This amount could be reduced if the new Europe agreement were implemented.

"France is ready to put pressure on Switzerland to implement the new European agreement on unemployment benefits for cross-border workers," said the French Minister of Labour, Jean-Pierre Farandou.

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Operational details

The reform on unemployment benefits for cross-border workers is at the center of discussions between Switzerland and France. The agreement foresees that in the future, the benefits will be paid by the country where the work activity takes place, and not by the country of residence. This means that French cross-border workers working in the Confederation will be able to benefit from this reform.

According to the current regulations, cross-border workers who work in Switzerland and reside in France can request unemployment benefits in Switzerland. However, with the new reform, the benefits will be paid by France if the cross-border worker resides in France.

For example, a cross-border worker who resides in Cluses, France, and works in Chiasso, Switzerland, will receive unemployment benefits from France if he or she becomes unemployed. This could represent a saving for Switzerland, which currently supports the costs of benefits for many cross-border workers.

The reform could have a significant impact on cross-border workers who work in the canton of Ticino, a Swiss region with a high number of cross-border workers. Municipalities such as Mendrisio, Lugano, and Locarno may be interested in this reform.

From an operational point of view, the reform could pose some challenges for cross-border workers and authorities. Here is a checklist of the main operations:

• Verification of residence and workplace
• Calculation of unemployment benefits
• Submission of the benefits request
• Management of the procedures by the authorities

⚠️ It is essential to note that the reform could have a different impact on cross-border workers depending on their individual situations.

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Key points

Cross-border unemployment reform, pressure from France on Switzerland

The reform of unemployment for cross-border commuters is an increasingly topical issue, especially in Ticino, where thousands of commuters cross the border every day to work. Switzerland and the European Union are discussing a new agreement that could change the rules for cross-border commuters.

Concrete examples A French cross-border worker working in Switzerland will be able to benefit from the new European agreement and receive unemployment benefits from the state where he or she works. For example, if a French worker lives in Besançon and works in Chiasso, he or she will be able to claim unemployment benefits in France. An Italian cross-border worker working in Switzerland will be able to benefit from the new European agreement and receive unemployment benefits from the state where the work is carried out. For example, if an Italian worker lives in Como and works in Lugano, he or she will be able to apply for unemployment benefits in Italy.

Operational checklist - Check if you are a cross-border commuter and if you are entitled to unemployment benefits - Check the current unemployment regulations in the countries of residence and work - Calculate the amount of unemployment benefits you are entitled to

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