BY BRIZIDA ALANI,
BY BRIZIDA ALANI, CONVINUS Monthly Special - Case study: Secondment vs. management transfer The newly founded “Pharma AG” in Switzerland belongs to the American group “MakeScience” in Switzerland. The long-standing CEO of the group is also the CEO of the subsidiary in Switzerland. For this reason, he must travel to Switzerland several times a year to attend important meetings with the Board of Directors and to help determine the business strategy for the Swiss subsidiary. The CEO will not take up residence in Switzerland but is expected to work in Switzerland for more than half a year. The main locations of his employment will be Basel and Zurich. Questions: 1. Which work permits are eligible? 2. What other aspects need to be considered? Possible solutions: 120-day work permit (short-term residence permit for the purpose of gainful employment) At first glance, a 120-day permit without taking up residence in Switzerland is the simplest option. First you would obtain the main permit in the Canton of Basel and then an agreement in the Canton of Zurich. The CEO does not wish to take up residence in Switzerland. However, if he would have to work in Switzerland for more than half a year, a short-term residence permit for the purpose of gainful employment with compulsory registration in Switzerland is required (L permit). The second step is to check whether the CEO of the group will receive an US-American or a Swiss employment contract. Depending on the employment relationship, the work permit route must be determined. L/B permit for secondment - employment relationship in the USA The CEO remains in the US employment relationship and on the US payroll. This makes it possible to obtain a residence permit based on an internal posting in Switzerland. 12 convinus.com
BY BRIZIDA ALANI, CONVINUS An important condition for this secondment is that the employee must have been employed by the same employer in the USA for a period of 12 months and that the employee is a manager or an indispensable specialist. Both conditions are met in our case. The employer abroad would then pay in addition respectively beside the Swiss minimum age also the secondment allowances for travel, accommodation and meals in full for the first 12 months. Depending on the duration of the posting contract, a short-term residence permit L (contract duration up to 12 months) or a residence permit B (contract duration longer than 12 months) is required. B permit for employment in Switzerland The employment of third-country nationals is subject to a long work permit process with proof of search efforts (keyword: national interest for Swiss nationals) as well as strict regulations in connection with the employee's qualifications, the function and the labor market in the sector in question. Particularly in the STEM sector (mathematics, information technology, natural sciences and technology), the priority given to Swiss nationals is waived if there is a demonstrable shortage of workers on the Swiss market. Management transfer in accordance with GATS In our CEO case, the Swiss employer can seek a local employment without regard to the priority for Swiss nationals (i.e. without advertising the position on RAV/EURES system and without the obligation to provide evidence of the search efforts made) if it is a management transfer. Essential middle and senior managers who are to work in Switzerland for between 3 months and 4 years are considered to be executives. The following criteria must be met for a management transfer under GATS: Senior executive / highly qualified specialist Authority to issue instructions (some cantons require the management of teams) 12-month previous employment with the same employer abroad High salary (in practice: more than the calculated Swiss minimum wage for middle and senior management) 13 convinus.com
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