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CONVINUS Global Mobility Solutions - Newsletter 3.2020_english

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of origin Country the

of origin Country the assignment of 4 Newsletter 3 / 2020 Control system for accompanying measures 90 days with 36.2%. The smallest group of all, is that of selfemployed service providers with 7.4% (1.6% less than in the previous year). The Law on Posted Workers (EntsG) forms the legal basis for the accompanying measures. In addition, there are the generally binding collective employment agreements and the The increase in the number of short-term jobs started with Swiss employers, were mainly due to the agricultural sector enactment of standard employment contracts. The aim of the accompanying measures is to comprehensively monitor the (+7.2%, 1233 persons), the hotel and restaurant industry (+5.2%, 985 persons) and the personnel leasing sector (+2.3%, 874 Swiss labour market, and to control the working and wage conditions of Swiss employers and companies that employ them. The aforementioned executive bodies, namely the parity persons). From a cantonal perspective, the majority of shortterm job openings are in the cantons of Zurich (14.0%), Geneva (11.5%), Vaud (9.1%) and Ticino (8.6%). This year , the Canton of and tripartite commissions, have SECO as their supervisory authority, which determines the qualitative and quantitative Valais recorded the largest increase in short-term job applications with Swiss employers, with 16.3% in the areas of requirements of the supervisory bodies. Based on the legal obligation in the law on the posting of officers, the canton agriculture and personnel hire. After two years of decline, the number of posted employees rose again in 2019. The origin of pays 50% of the remuneration, and the Confederation and SECO pay 50%. The joint commissions receive a lump sum of the posted employees has not changed in the composition of the countries of origin. The largest group of posted employees CHF 650 for each inspection and are financed with an hourly rate of CHF 100 for special inspections. comes from Germany with 47.5%, followed by Italy with 16.5%, France with 9.3% and Austria with 6.9%. Posted workers from Bulgaria, Poland, Romania, Hungary, Slovakia and Czech The minimum national target for checks is set at 35,000 per year. The controls between the different categories of Republic account for only 8%. Most of the secondments take place in the manufacturing sector with 33.7% and in the employees are risk-based, reflecting the intention to increase controls on posted workers who are most affected by the pay ancillary building trade with 26.3%. gap between Switzerland and EU/EFTA countries (e.g. Italy, The number of self-employed service providers continues to Poland, etc.). decline. The reason for this, is the failure to report selfemployed persons in the main and ancillary building trades. In current practice, 30-50% of all posted workers and selfemployed service providers subject to declaration are checked. However, the number of declarations of self-employed persons In contrast, only 3% to 5% of all Swiss employers are subject to controls. in the trade sector remains constant. The number of selfemployed persons in the church, culture, sport and entertainment sector has increased sharply, which means that In 2019, around 121 inspectors were working for the cantonal the number of postings in the main construction and ancillary construction sectors has fallen by more than half. Trade was tripartite commissions. This means that 121 inspectors checked the working and wage conditions of companies that overtaken. More than half of the reports, 51.5%, are from the five cantons of Zurich, Geneva, Bern, Ticino and Basel City, with are not subject to a generally binding CLA. It is difficult to the largest increase in the canton of Ticino (+14.2%). estimate the number of inspectors on the joint commissions for those areas in which there is a generally binding CLA. %-Share of 100 % Germany 47.5 % Results of labour market controls of Swiss companies The results of the labour market inspections in 2019 have Italy 16.5 % exceeded the national minimum target of 35,000 inspections France 9.3 % per year. In 2019, 41,305 checks actually took place. As expected, Austria 6.9 % 29% of the reported delegates and 8% of all Swiss employers Bulgaria, Poland, Romania, 8 % were checked. Slovakia, Czech Republic Rest 11.8 % The lower proportion of checks on Swiss employers can be

Newsletter 3 / 2020 5 In the case of secondments in sectors without a generally explained by the fact that checks on posted employees cannot always be made, especially retrospectively. In this binding CLA, the volume of checks has fallen slightly. However, the number of infringements has remained constant. The circumstance however, Swiss employers are subject to stricter and more intensive controls in return for the posted workers in majority of checks in 2019 were carried out in the manufacturing sectors (55%), business services (finance, real the case of the fight against illegal employment. In 2019, for example, 58% of company inspections were carried out on estate and business services) (21%) and ancillary building trades (15%). The wage undercutting rate for secondments was Swiss employers. The remainder of the controls were carried out at posted service providers with 27% and self-employed 15%, with the Canton of Ticino leading the way with the highest cases. persons subject to reporting requirements with 15%. In the area of checks on persons, 80% of these checks were carried Among the self-employed, the checks were most frequent in the manufacturing and ancillary building trades. These sectors out on Swiss employers. 16% of the checks on persons were carried out on posted employees and 4% on self-employed also recorded the largest proportion of bogus self-employment (43%). One third of pseudo self-employment occurred in the service providers. cantons of Ticino and Basel-Land. In 2019, 610 fines, 71 interruptions of work and 272 suspensions of services were The most controlled sectors without a generally binding CLA, with a control volume of more than 57% compared with the previous year, are business services (banking, insurance, real imposed due to the documentation obligation to prove selfemployment. estate and IT). In 2018, the labour inspectors focused on the Sanctions retail trade and in 2017 on the health sector, which is why the The mutual agreement procedures between law enforcement breakdown by sector varies from year to year. Although the volume of inspections in the retail sector has been reduced, bodies and controlled persons is at a very high rate of 84%. However, the cantons also distributed 2,503 fines and 931 inspections in this area remain intensive and at a high level. The level of undercutting fund ?? has remained constant at 11- service suspensions for Switzerland. The canton of Ticino imposed the most fines and service blocks, followed by Bern, 13% over the last four years, i.e. from 2014 to 2018. The same rate for Swiss employers also remained stable at 7%-8% over Zurich and Aargau. Only the Canton of Geneva did not impose the same period. The most controlled sectors with generally any fines at all. binding CLAs are the ancillary building trade and the In conclusion, the implementation of the accompanying manufacturing industry, in which the number of posted employees and self-employed service providers is also highest. measures in 2019 was a success. The control objectives of the cantonal enforcement bodies have largely been achieved. The The volume of inspections was highest in the Canton of Ticino, with 60% of all inspections. protection of wage and working conditions is thus assured. Nevertheless, optimisation projects for 2020 are on the agenda, Results of labour market controls on postings in particular the revision of the law on the posting of workers in the sense of compliance with cantonal minimum wages by The majority of posted employees and self-employed service posting companies (motion 18.3473 Abate). providers work in the ancillary building trade and manufacturing industry. Hence, most checks on postings in Our suitable webinar recommendation: these sectors are carried out under generally binding CLAs. The rate of infringements of the minimum wage regulations has increased slightly by 1%, i.e. from 20% to 21% for companies and from 21% to 22% for individuals. Overall, there has been a decline in the number of checks carried out, mainly in the four following areas: metalworking, carpentry, woodworking and building services. Despite the decline, these four sectors have the highest number of inspections carried out. In these sectors 59% of the sending enterprises were checked.

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