Binding minimum wages for workers posted from the EU
The Federal Council adopts dispatch and bill to revise the reference wage regulations for companies based in the European Union
Federal Council adopts dispatch regarding amendment of the Posted Workers Act
On April 28, 2021, the Federal Council of the Swiss Confederation adopted the message and the bill concerning the partial revision of the Posted Workers Act.
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The revision foresees the possibility to impose to the posting companies of the EU countries the respect of the cantonal minimum wages.
The revision implements the motion Abate 18.3473, which was tabled following the introduction of cantonal minimum wage laws and which asked the Federal Council to stipulate that EU posting companies should also be required to guarantee cantonal minimum wages.
Within the framework of the proposed implementation, the planned obligation only applies if the cantonal law also applies the minimum wage to employees whose usual place of work is outside of the canton.
Cantons to supervise wage compliance
The draft also stipulates that the cantons must monitor compliance with cantonal provisions on minimum wages and ensure that they are enforced in accordance with their own regulations.
The proposed revision takes into account the division of competencies between the cantons and the Confederation as set out in the Federal Constitution and ensures compliance with the principle of non-discrimination enshrined in the Agreement on the Free Movement of Persons between Switzerland and the EU.
All employers whose employees work in a canton with a minimum wage law are treated equally.
Explicitly stipulated reduction of federal allowances
The revision creates an explicit legal basis that will allow the federal government to demand a reduction or restitution of compensation paid if executive agencies fail to perform or partially perform their duties under the Posted Workers Act and the Undeclared Workers Act.
A provision to this effect will be added to both laws.
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Finally, the Posted Workers Act will enable the Confederation to provide the implementing bodies (social partners and cantons) with an electronic communication platform for the transmission of documents and information within the framework of the implementation of the Posted Workers Act.
The Confederation will be able to store the necessary data and process them as part of the platform’s maintenance.