Unemployed border workers: EU approves burdensome reform for Switzerland (cross-border guide)

Context

Unemployed frontier workers: EU approves burdensome reform for Switzerland The European Parliament on Tuesday approved the reform aimed at redefining the competences of unemployed frontier workers. This change may result in additional costs for Switzerland. According to SECO, costs could range from CHF 300 million to CHF 600 million per year. The reform, which was approved by a majority of 376 votes to 278, introduces new rules for the management of unemployed frontier workers. This means that Switzerland will have to take new measures to ensure that unemployed frontier workers receive treatment similar to that of Swiss workers. According to SECO, the reform will entail additional costs for Switzerland, especially with regard to the management of unemployment funds. SECO estimates that costs could range from CHF 300 million to CHF 600 million per year, depending on the share of funds that Switzerland will have to contribute. The reform could have a significant impact on the Swiss cantons that are most dependent on frontier workers. For example, the Valais Canton has a population of around 37,000 border crossers, representing 15% of the canton's total population. The reform could entail additional costs for the Valais Canton, which will have to adopt new measures to ensure that unemployed frontier workers receive treatment similar to that of workers In summary, the reform could entail additional costs for Switzerland, especially with regard to the management of unemployment funds. SECO estimates that costs could range from CHF 300 million to CHF 600 million per year, depending on the share of funds that Switzerland will have to contribute. The reform could have a significant impact on Swiss cantons that are more dependent on frontier workers and could result in additional costs for frontier workers themselves.

Operational details

The reform provides that it will be the State in which the person who has become unemployed has exercised his last employment to pay the allowances. Currently, Switzerland is the State of employment and pays benefits to unemployed frontier workers.

The reform approved by the EU could have a significant impact on Switzerland, in particular for border cantons such as Graubünden, Ticino and Valais. In fact, these cantons are home to a large number of frontier workers who work in Switzerland and are subject to Swiss laws.

According to data from the Federal Labour Office (UWF), in 2020 there were about 65,000 unemployed border workers in Switzerland. Most of them came from EU member countries such as Poland, Romania and Bulgaria. These workers are entitled to receive unemployment benefits in Switzerland, which is funded by the State.

The reform provides that the State of residence of unemployed frontier workers is responsible for the payment of benefits. This means that, if a frontier worker becomes unemployed, his State of residence will have to pay the benefits due to him. In this case, Switzerland may have to pay benefits to unemployed border workers who work in Switzerland but are resident in other EU member countries.

For example, if a Polish worker working in the Canton of Graubünden becomes unemployed, Poland will have to pay the benefits due to him. However, if the worker

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Key points

Unemployed border workers: EU approves burdensome reform for Switzerland The European Commission has approved a reform that could have a significant impact on the Swiss budget. If the reform were adopted, Switzerland's budget would be reversed. Currently, Switzerland has a surplus of CHF 300 million per year. The new regulation of the 27 EU Member States shifts the payment of allowances to the State of employment. The reform, which was approved on 10 March 2023, provides for unemployed frontier workers to receive an unemployment benefit from the State of employment, rather than from the State of residence. This means that frontier workers who work in Switzerland but are resident in another EU country could receive an unemployment benefit from the State of employment, rather than from Switzerland. According to calculations by the Federal Office of Legal Affairs (FOJ), Switzerland could lose up to CHF 1.2 billion per year due to this reform. Most of these funds would be used to pay unemployment benefits to border workers. Switzerland has already requested an exception to this reform, but the European Commission has rejected the request. Switzerland may therefore need to take measures to reduce the number of unemployed frontier workers or to raise taxes to cover the deficit. The reform could have a significant impact on Swiss cantons that have a high number of Switzerland may have to work with other EU countries to find a solution to the issue of unemployed frontier workers. For example, Switzerland may need to work with the European Commission to find a solution that is fair to all countries involved. The reform could have a significant impact on Switzerland's migration policy. Switzerland may need to take measures to reduce the number of border crossers entering the country. For example, Switzerland may need to increase border control measures to reduce the number of border crossers entering the country. Switzerland may have to work with other EU countries to find a solution to the issue of unemployed frontier workers. For example, Switzerland may need to work with the European Commission to find a solution that is fair to all countries involved. Switzerland may need to take measures to reduce the number of unemployed border workers and to increase support measures to help border workers find work. For example, Switzerland may need to increase training and retraining measures to help border workers find jobs. Switzerland may have to work with other EU countries to find a solution to the issue of unemployed frontier workers. For example, Switzerland may need to work with the European Commission to find a solution that is fair to all countries involved.