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Flanking measures in connection with the introduction of the Agreement of the Free Movement of Persons

Country of implementation
Switzerland
General short description of the innovation
The flanking measures aim to prevent any abusive undercutting of Swiss wages and employment conditions. They include measures in the three main following area: / - Law on posted workers, which oblige foreign employers who transfer workers to Switzerland to comply with the wages and employment conditions applying in Switzerland (Law on posted workers). Possibility to apply financial sanctions to foreign and Swiss employers practicing abusive conditions. Since 2013, in the construction sector, sub-contracting employers can also be held responsible for the wage and employment conditions offered by the sub-contracted companies. / - Legal extension of collective agreements: In the event of abusive practices, the Federal Council can decide to extend the legal validity of collective agreements to all employers and employees operating in a given sector in Switzerland. / - Increased means of control: Introduction of tripartite commissions (employers, unions and state) at federal and Cantonal levels to observe developments on the labour market and ensure compliance with usual wages and employment conditions. Since 2006, appointment of additional labour inspectors to verify employment conditions and communicate abuses
Target group
Total Population
Policy Field
  • employment
  • wage
Type of Policy
  • public
  • social partnership
Duration of the policy
In force since 2004, progressive extension over the years.
Scope of innovation
  • Scope: very unsure at the moment (as it depends on the future of the Free)
  • Budgets: unknown
  • Number of intended beneficiaries: the Swiss workforce as a whole
  • Spatial coverage: national
General description of (intended) objectives and strategies
The overall objective is to prevent any abusive undercutting of Swiss wages and employment conditions.
Nature of the innovation-short-term perspective
strong
Type of ideal-typical strategy for the innovation
  • encompassing security
Type of innovation
  • new form of policy monitoring and/or evaluation
  • new policy, practice or measure
New outputs
  • wages (series of measures, controls and sanctions to tackle abusive wage undercuttings )
  • working time (series of measures, controls and sanctions to tackle abusive employment conditions )
Intended target group
Employees and employers
Working age population
  • main source of income: paid work
Employers-private institutional actors
Swiss employers, but also foreign employers posting workers to Switzerland
Actors involved in policy-making/implementation and/or evaluation
  • central state
  • employees (organised or individual) (organised)
  • employers (organised or individual) (organised)
  • regional government
Intended output
  • wages (partial and unequal implementation of measures, as measures like sanctions or the extension of collective agreements have been rarely used and controls have mostly concentrated on posted workers and a few economic sectors regulated by national collective agreements defining minimum wages. )
  • working time (partial and unequal implementation of measures, as measures like sanctions or the extension of collective agreements have been rarely used and controls have mostly concentrated on posted workers and a few economic sectors regulated by national collective agreements defining minimum wages. )
Intended and unintended outcomes
controls focused on about 16 % of the total workforce (employees covered by extended collective agreements and posted workers)
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