Border Workers Unemployment Reform: Gobbi Stops Dangerous Trends (cross-border guide)

Contesto

In brief The EU's reform on cross-border workers' unemployment could cost Switzerland between 600 and 900 million francs a year, with the canton of Ticino particularly exposed. Councilor of State Norman Gobbi has invited the Federal Council to protect Switzerland's interests, as the reform would abolish the current system of reimbursement from the state of the last employment to the state of residence. ## Key facts - What: EU's reform on cross-border workers' unemployment - When: Ongoing - Where: European Union - Who: Norman Gobbi, Lega councilor of State - Amount: Between 600 and 900 million francs a year Councilor of State Norman Gobbi has expressed his concerns about the ongoing reform of the European Union on the competence for granting unemployment benefits to cross-border workers, in an interview published in the Sunday Morning. If approved, the reform could have significant financial consequences for Switzerland, with the canton of Ticino being particularly affected. Currently, in case of unemployment of cross-border workers, the state of residence is responsible for paying the benefits. However, the proposed revision of regulation 883/2004 of the EU provides that the state of the last employment should grant the unemployment benefit to cross-border workers. The State Secretariat for Economic Affairs (SECO) has estimated that the additional costs for Switzerland could range between 600 and 900 million francs a year. The canton of Ticino, thanks to its border position, is particularly exposed to the phenomenon of letterbox companies, i.e. companies that transfer their legal seat to Switzerland to take advantage of the unemployment benefit system. The risk is that of encouraging short-term contracts or artificial employment relationships, solely for the purpose...

Dettagli operativi

Implications for Cross-Border Workers 💡 The proposed reform on unemployment benefits for cross-border workers by the European Commission may have concrete consequences for those working in Switzerland and residing in Italy, particularly in the Canton of Ticino. If the proposal to revise the EU Regulation 883/2004 is adopted, cross-border workers who lose their job in Switzerland may be required to apply for unemployment benefits to the state of their last employment, rather than their country of residence. This could lead to increased complexity in applying for benefits and a possible delay in their provision. For example, a cross-border worker residing in Lugano who loses their job in Switzerland may need to apply to the Swiss Social Insurance Office, rather than the Italian National Institute of Social Security. This could result in increased bureaucracy and a delay in the provision of benefits, which in Switzerland amount to approximately CHF 150 per day, while in Italy the amount varies depending on the region of residence. Furthermore, the reform may increase costs for Switzerland, with potential repercussions on the country's economy and, consequently, on the employment of cross-border workers. For instance, according to the Federal Department of Economy, Education and Research, cross-border workers account for approximately 10% of the workforce in Switzerland. An increase in costs for Swiss companies may therefore lead to a reduction in employment for cross-border workers. It is essential that cross-border workers closely follow the evolution of the situation and prepare for any changes. In any case, it is crucial that cross-border workers inform themselves about the applicable regulations and their rights regarding unemployment benefits, both in Switzerland...

Punti chiave

What to do if you are a cross-border worker The reform on unemployment for cross-border workers is a hot topic for those working in Ticino and living in Italy. If you are a cross-border worker and fear being affected by this reform, we advise you to closely follow the evolution of the situation, keeping in mind that the reform is still in the discussion phase. The reform, indeed, provides for the introduction of a Swiss contribution to unemployment for cross-border workers, but the modalities and details are still the subject of discussion among parliamentarians. It is also important to inform yourself about your possibilities of requesting unemployment benefits, both in Switzerland and in the country of residence, and about the times and modalities of payment. For example, in Switzerland, unemployment benefits are managed by the cantonal unemployment insurance funds and the amount depends on the contributions paid and the duration of unemployment. In Italy, on the other hand, unemployment benefits are managed by INPS and the amount depends on the type of contract and the duration of unemployment. It is also important to regularly check your health status and ensure you have adequate insurance coverage. In case of illness or injury, indeed, insurance coverage can be fundamental to guarantee the continuity of income. Finally, it may be necessary to consider the possibility of looking for work in Italy or of returning to live in the country of origin, if the situation so requires. For example, according to the data of the Federal Office of Statistics, in 2020 the number of cross-border workers in Ticino was around 80,000, but the number of workers who have lost their job due to the pandemic has been significant. In this case, it may be necessary to evaluate the possib...

Punti chiave

[{"q":"What would change for cross-border workers with the unemployment reform?","a":"If the reform is adopted, cross-border workers who lose their job in Switzerland may have to apply for unemployment benefits from the country of their last employment, rather than their country of residence. This could result in increased complexity in the application process and potential delays in receiving benefits."},{"q":"How can I prepare for the cross-border worker unemployment reform?","a":"Cross-border workers should closely monitor the situation and inform themselves about their options for applying for unemployment benefits, both in Switzerland and their country of residence. It's also important to regularly check your health status and ensure you have adequate insurance coverage."},{"q":"What should I do if I'm a cross-border worker and I'm concerned about being affected by the unemployment reform?","a":"Cross-border workers should closely monitor the situation and inform themselves about their options for applying for unemployment benefits, both in Switzerland and their country of residence. Additionally, it's important to regularly check your health status and ensure you have adequate insurance coverage. If you encounter difficulties, it's recommended to consult a lawyer specializing in labor law."}]

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