Unemployment of frontiersmen opens a new front with Brussels (cross-border guide)

Context

In short, the European Union (EU) and Switzerland have reached a new agreement on social security, with Regulation 883 updating the precedents of 2004 and 2009. The reform introduces the rule on unemployment benefits for frontier workers, which are now in force in more than 10 European countries, including Switzerland, Liechtenstein, Norway and Iceland. Switzerland is also not a member of the European Union/Space of Europe (EU/EEA), but signed the last Border Agreement on 23 December 2020, which will enter into force on 1 January 2024.

Key facts

In Switzerland, the unemployment rate has been stable or falling in recent years, while in other European countries, such as Greece and Italy, it has grown. This could lead to an increase in claims for unemployment benefits among frontier workers, especially if their work activity cannot be recovered in Switzerland. For example, the catering sector could be affected by the lockdown due to the health emergency.

Switzerland has provided for the creation of a practical recommendation to help border workers deal with claims for unemployment benefits. This document includes an operational checklist for workers seeking to recover their work activity after a period of unemployment. For example, border guards must submit a detailed work plan, which includes information on the type of activities they intend to

Operational details

On the unemployment of frontier workers, a new front opens up with Brussels, where the new discipline could be extended to non-EU countries, although without automation. The reform, after being announced in 2009 and completed in 2004, aims to free the labour market from the monopoly power of large business groups, favouring employment and the competitiveness of companies.

The new regulation provides for the extradition of social protection for non-resident workers, favouring integration and employment in Switzerland. For example, the Canton of Graubünden has already experienced a similar measure, with an unemployment rate of 2.7% for border workers, compared to 10.1% for non-resident immigrants.

As for neighbouring cantons, the reform could lead to increased competition and diversification of economies. For example, the Canton of Ticino has already experimented with a system of part-time paid leave for frontier workers, with a reduction in unemployment and an increase in productivity.

Although the new discipline may bring benefits, there are still some open questions. For example, there is still no automation that helps border workers find work in Switzerland, while there are still prejudices and cultural barriers that hinder integration. For this reason, it is important to continue working together with the Swiss government and Brussels to ensure fairness and social justice.

In summary, the reform

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Key points

Border workers' unemployment opens a new front with Brussels

Switzerland, with over 1 million frontier workers, is strongly affected by the new EU/EEA Regulation 883, which already applies beyond the borders of the European Union and will enter into force on 1 January 2024. The New Frontier Agreement, signed on 23 December 2020, provided for a series of reforms to improve working conditions and social protection for frontier workers, including the introduction of a new rule on unemployment benefits.

This reform, which updates the previous regulations of 2004 and 2009, will introduce a more flexible and transparent system for unemployment benefits, providing for the payment of a minimum amount of 60% of the basic income for individuals and 80% for families. In addition, the new agreement includes a number of measures to facilitate access to social protection and the labour market, such as the introduction of a single and common register of frontier workers between Switzerland and the EU/EEA.

Labour Contributions

One of the main innovations of the New Frontier Agreement concerns the reform of the system of contributions for frontier workers. Currently, frontier workers contribute to the Swiss contribution system and, in the event of unemployment, can benefit from unemployment benefits like other workers in Switzerland. The new agreement provides that border workers who

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Source: cdt.ch