Coffee & Consulting_Mind the "Red-Flags" regarding your crossboarder work trips

Labour market controls

Labour market controls and Consequences of violations against the Posted Workers Act(EntsG) Labour market inspections either in the office or in writing • Required work permit or online notification for any working day • Equivalent swiss salary was paid • Additional allowances are paid • Work hours / holiday entitlement • Bank holiday or Sunday permit requirement is fulfilled • Night permit requirement is fulfilled • Legal obligation of documentation, especially regarding effective working hours Example Violations of the Posted Workers Act may result in: • State sanctions: • Administrative fines of up to CHF 5,000 • Temporary suspension of services from 1 to 5 years • Imposition of inspection costs on offending employers • Criminal sanctions: • Criminal fines of up to CHF 1,000,000. • Confiscation of assets • Sanctions under the CLA • During the expansion of the parcel sorting centre in Härkingen, foreign fitters were paid too low wages. Swiss Post commissioned a company from the Netherlands, which then passed the contract on to subcontractors from Germany, Poland and Slovenia. • German company: back payment of underpaid wages (CHF 140,000) and a fine of CHF 35,000 Working Mind the from "Red-Flags" home (teleworking) regarding your – what crossboarder the future work regulation trips - August will look 21, like. 2023 – June 20, 2023 COPYRIGHT © CONVINUS 10

183 days rule with factual empolyern principle Less then 183 days in Switzerland No compensation in Switzerland No cost coverage in Switzerland Switzerland: In addition: Factual employer principle Example • A controller from the German branch will come to Switzerland for 4 months • He takes over the work of his predecessor and reports directly to the head of department in Switzerland • His salary will still be payed from Germany. • His German employment contract remains unchanged • Factual employer, since integrated into Swiss organization Please take note: If factual employer or Swiss employer = tax at source; if not tax payments through tax return filing Working Mind the from "Red-Flags" home (teleworking) regarding your – what crossboarder the future work regulation trips - August will look 21, like. 2023 – June 20, 2023 COPYRIGHT © CONVINUS 11