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

Context

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.

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Operational details

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.

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Key points

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.

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