For employees who are temporarily working in another country on an assignment on behalf of their employer, the social security laws of their home country continue to apply during this period, provided certain conditions are met (known as “posting,” as confirmed by Form A1).
A secondment requires the following:
- During the assignment, the employee has an employment contract with the employer in Switzerland
- There must be a verifiable direct employment relationship between the sending employer and its employee throughout the entire duration of the posting. The employee remains under the authority of the sending employer.
- The employee must have been insured in Switzerland for at least one month immediately prior to their assignment abroad, either based on their residence or because they were engaged in gainful employment there.
- The person to be seconded does not replace a person who has already been seconded
- During the posting, the authority to terminate the employment contract remains exclusively with the employer in Switzerland
- An employer in Switzerland may determine the general nature of the work at the assignment location
- The person to be posted is expected to continue working for the employer in Switzerland after the posting;
- Social security contributions are collected by the employer in Switzerland and settled with the appropriate compensation office
- The person to be posted must have a licensed health insurer or have been exempted from the requirement for mandatory health insurance by the competent cantonal authority.
The posting is certified using Form A1. This document confirms that the holder is required to pay social security contributions only in the country that issued Form A1.
The employee must first fill out the A1 Posting Form (German / English); payroll+ will officially report the posting once the above requirements are met.
In practice, the question of whether an A1 form must be requested for business trips can be answered in the negative, even though the law does not specify a minimum time limit (see attached .pdf “The 10 Most Frequently Asked Questions About Form A1,” point 6. The current exceptions are France and Austria, which may impose penalties for failing to provide Form A1).
It should be noted that any double payment of social security contributions is the responsibility of the employee. Likewise, the employee is required to comply with the legal provisions of the host country; this applies in particular to the host country’s regulations regarding permits, residency, and labor law.
Posting from Switzerland to an EU Country
Certificate of Assignment
For initial postings lasting up to a maximum of 24 months, the employer or self-employed person must submit an application to the relevant AHV compensation fund to have a posting certificate issued. If the requirements for a posting are met, the AHV compensation office issues an A1 certificate and provides it to the employer or the self-employed individual. The employer then gives the certificate to the posted worker.
Extension of the Assignment
If, contrary to expectations, the 24-month period proves insufficient, an application for a long-term posting or an extension of the posting (exemption agreement) may be submitted to the Federal Social Insurance Office in the employee’s interest. The Federal Social Insurance Office will attempt to reach an exemption agreement with the competent foreign authority in accordance with Article 16 of Regulation (EC) No. 883/04. If the agreement is reached, the employer will receive confirmation that Swiss legislation will continue to apply. The extension must be requested before the initial 24-month posting period expires. The same procedure applies to self-employed individuals.
According to international practice, an extension is requested from the authorities of the other country only if the total duration of the assignment does not exceed five to six years.
If, at the start of the assignment, it is already apparent that the 24-month period will not be sufficient to complete the tasks, an application for an extended assignment (exemption agreement) may be filed directly with the Federal Social Insurance Office in the employee’s best interest.
For information on posting employees from Switzerland to an EFTA country or a signatory state, see the fact sheets here.
Regarding social security for employees on assignment:
During the term of the assignment, the general rule is that the legal provisions of the employer’s country apply (the so-called “place of employment principle” or “principle of coverage”). This means that employees are generally covered by the social security system of the country where they work. However, the aforementioned regulation provides for a special provision for posted workers that allows them to remain insured in their home country during a temporary posting, provided that the expected duration of this work does not exceed 24 months and the person is not replacing another posted worker.
Pursuant to Regulation (EEC) No. 1408/71 of the Council dated June 14, 1971, Article 14 stipulates that a person posted to another country remains subject to the social security system of their country of origin for the duration of the assignment, up to a maximum of 12 months. To confirm that the posted worker remains subject to the social security legislation of the country of origin, a corresponding posting certificate (see A1) is required. If, for unforeseeable reasons, the originally planned duration is exceeded—beyond twelve months— the legislation of the first country shall continue to apply until the completion of this work, provided that the competent authority of the country to whose territory the person was posted, or the body designated by that authority, grants its approval; this approval must be requested before the end of the first twelve months. It may not be granted for a period longer than twelve months.
A1 Certificate
With the A1 certificate, an employee can prove that he or she is covered by social security through his or her home country while on a business trip to another European country. This means they do not have to pay double social security contributions. payroll+ can submit the A1 form to the AHV branch office for a posting within the EU, provided the employee has been on payroll through payroll+ for at least one month.
Examples:
Switzerland – Posting to EU member states – max. 24 months; extension to a maximum of 6 years subject to a special agreement between the two countries
Switzerland – Posting to EFTA countries – max. 24 months; extension to a maximum of 6 years subject to a special agreement between the two countries
Switzerland – Posting to contracting states – max. 12–60 months, depending on the agreement between the two countries. Extension to a maximum of 6 years subject to a special agreement between the two countries
Switzerland – Posting to Other Countries – Under the principle of territoriality, every person is generally subject to the laws of the country in which they are residing. Individuals—regardless of their nationality—who work abroad for a Swiss employer and are paid by that employer may, with the employer’s consent, continue their coverage under the AHV/IV/EO and unemployment insurance if they were insured for at least five consecutive years immediately prior to taking up employment abroad.