Restriction of foreigners and Swiss nationals in hiring

On December 8th, 2017, the ordinance implementing the constitutional article on the management of immigration (Art. 121a BV) was adopted in Bern. In particular, the law provides for the introduction of a job posting obligation in those areas of employment where the unemployment rate reaches or exceeds a certain threshold. The Federal Council has now decided on a staggered approach: From 1 July 2018, a threshold of 8 percent and from 1 January 2020 a threshold of 5 percent will apply. This job posting requirement applies – irrespective of whether foreign applicants are expected – for all positions of the professions concerned. Thus, every company in Switzerland should familiarize themselves with the regulations and check whether they are to be applied before the tendering procedure.

It is introduced in a first step in those occupations in which the total Swiss average annual unemployment rate reaches or exceeds 8 percent. As of January 1, 2020, this threshold will be lowered to 5 percent. This job posting requirement applies – irrespective of whether foreign applicants are expected – for all positions of the professions concerned.

As of July 1st, 2018, this is expected to affect the following occupations (forecast based on 2016 numbers):

  • Concrete Builders, Masons, Construction Workers
  • Welders and Metal Workers
  • Insulators
  • Warehouse staff
  • Painters, Decorators
  • Machinists, Tool Makers
  • Housekeeping staff
  • Service personnel
  • Kitchen staff
  • Domestic operations manager, Maid
  • Biologists
  • Marketers / Marketing specialists

The Federal Council has also decided that the information on the notified bodies will only be accessible to jobseekers registered with the PES (public employment service) and employees of the PES within a period of five working days. This gives jobseekers a head start on the job market, which they can take advantage of by quickly and independently applying for vacancies. In addition to this information advantage, the PES sends appropriate dossiers to the employers within three working days. These employers invite suitable jobseekers to a job interview or an aptitude test and inform the PES if they are hired.

This measure also provides for a better integration of refugees. Job Seekers and Recognized Refugees eligible for the Labor Market and provisional beneficiaries receiving social assistance will be reported to the PES. This gives them a better chance of being integrated effectively and sustainably into the Swiss labor market.

For further questions on this topic please contact International HR Services Ltd.. For affected companies, we are happy to put together more information.