Swiss Council of States backs fines for hiring foreign workers over locals

The Council of States has passed a motion that will force companies in Switzerland to choose a qualified local candidate or face fines and limitations on the number of Swiss work permits they can allocate. The vote comes at a time when finding a job is more difficult than ever, with many skilled expats struggling with high competition and a slow-moving job market.

Fines proposed for employers skipping qualified Swiss applicants

Companies based in Switzerland already follow strict rules on hiring international workers and non-EU/EFTA citizens, but the upper house of the Swiss parliament now wants to take things a step further. 

Introduced by Centre Party councillor Benedikt Würth, the Council of States voted 37 to five in favour of a motion that will fine employers who reject qualified applicants from Switzerland.

The proposal specifically allows Regional Employment Centres (RAV), where certain residents can claim unemployment benefits, to “impose a sanction if a company subject to mandatory registration rejects a candidate deemed suitable by RAV” in favour of someone not part of the Swiss labour market. 

The mandatory job vacancy register (Stellenmeldepflicht) currently requires companies in industries with unemployment rates at or above 5 percent (such as construction, manufacturing and catering) to report new job postings to the RAV for five working days before advertising them elsewhere, to prioritise local job seekers.

Furthermore, if an employer chooses a candidate from abroad when someone living in Switzerland is qualified and claiming unemployment benefits, it may also be “excluded from the allocation of quotas for work permits for workers from third countries,” explains Blick.

The motion aims to ensure companies “mobilis[e] the domestic workforce potential”, rather than sponsor and hire international candidates from outside Switzerland.

Debate over economic freedom and the Swiss job market

Speaking during the debate, Council of States member Mauro Poggia argued that Switzerland’s “social peace is at stake” as more and more young people and local job seekers are struggling to find employment. 

The Federal Council, while supportive of utilising the domestic workforce in Switzerland, rejects the idea of fining companies, adding that it could damage companies' economic freedom to operate and put a strain on the relationship between employers and the RAV. The motion will now move to a vote in the National Council.

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