Switzerland doesn't pay unemployment benefits (cross-border guide)

Context

Switzerland does not pay unemployment to frontier workers. One billion francs under discussion The Federal Council has decided that Switzerland will not pay unemployment to border workers. This decision was taken recently and could have significant consequences for Switzerland and Italy. Switzerland employs around 412,000 border workers and Swiss unemployment insurance spending could range from a few hundred million francs to a billion per year. Switzerland is one of the countries with the highest number of border crossers, with a significant presence in sectors such as agriculture, industry and services. According to 2022 data, the cantons with the highest number of border crossers are Graubünden (93'171), Ticino (71'471), Valais (34'211) and Bern (24'141). The city of Lausanne, in particular, has a significant number of border workers employed in the tourism and catering sector. The decision of the Federal Council is based on the federal law of 14 December 2021, which states that unemployment of border workers is not a vested right, but is subject to revision. Switzerland has already previously reduced spending on unemployment insurance for frontier workers, from CHF 1.4 billion in 2015 to CHF 900 million in 2022. However, the decision not to pay unemployment to frontier workers could have significant consequences for Switzerland and Italy. According to the data of the Switzerland could also face consequences on its economy, such as increased costs for employing Swiss workers and reduced spending on immigration. The decision of the Federal Council could also have consequences on the integration policy of border workers in Switzerland. Switzerland may also face consequences for its international image. The decision not to pay unemployment to frontier workers could be seen as an injustice to frontier workers, who may feel disrespected and unprotected.

Operational details

One billion francs under discussion

The Federal Council's decision could have significant consequences for Switzerland and Italy. Switzerland employs around 412,000 border workers and Swiss unemployment insurance spending could range from a few hundred million francs to a billion per year.

According to the Swiss Confederation, in 2022, the total cost of unemployment insurance for frontier workers was about CHF 540 million. However, if the Federal Council decides not to pay unemployment to frontier workers, the cost could increase considerably.

Article 4 of the Federal Unemployment Act (LDG) of 19 December 1982 states that frontier workers are entitled to an unemployment benefit if they have worked for at least 26 weeks during the last two years. However, the Federal Law on Unemployment for Frontier Workers (LDF) of 19 June 1997 states that frontier workers are not entitled to an unemployment benefit if they have been dismissed on grounds of force majeure or if they have refused to work on health grounds.

According to data from the Ministry of Economy, Education and Research (MEIR), in 2022, border workers worked a total of 1.3 billion hours, with a total value of about 17.4 billion francs. However, if the frontier workers had not received an unemployment benefit, the total value of the hours

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Key points

One billion francs under discussion

Switzerland is known for its stable economy and strict work policy. However, a little-known aspect of Swiss legislation is the lack of an unemployment system for frontier workers. Border workers are workers who arrive in Switzerland to work temporarily and then return to their country of origin. According to Frontier Ticino's salary calculator, Swiss border workers are not entitled to unemployment benefits.

This means that if a border worker loses their job, they cannot access unemployment benefits as is the case for Swiss workers. This situation could have important consequences for frontier workers, especially those who live in Switzerland for the long term and may not have access to alternative resources.

According to a source from the Federal Ministry of Economy, the total amount of one billion francs could be in question if border workers were entitled to unemployment benefits. This amount has been estimated considering the number of border workers working in Switzerland each year and the average time they spend in Switzerland.

Under a 2019 regulation, the Swiss government has ruled that frontier workers are not entitled to unemployment benefits. The legislation specifies that frontier workers must be considered self-employed and not employees. This means that they cannot access the

Source: comozero.it