Legal restrictions regarding access to the labour market

Restrictions linked to citizenship

(Updated: 19 August 2019)

The nationality of persons on entry to Switzerland is decisive in the exercise of a gainful activity. The requirements vary by the worker’s nationality. As per the agreement on the free movement of persons (AFMP) [entered into force as at 1st June 2002], a distinction is made between citizens of the EU25 (EU17 + EU8) / EFTA, EU2 and Croatia and non-EU citizens.

The free movement of persons is determined together with the EU-25/EFTA member states. It includes the right to enter, stay, work and become self-employed in Switzerland. To exercise gainful employment for more than 90 days in a calendar year, citizens from these countries only require a residence permit which also serves as a work permit. However, this is only issued if the interested party presents a contractual statement or proof of employment (employment contract). On presentation of this document for a duration equal to or greater than one year or for an indefinite length of time, the salaried employee receives a residence permit B EU/EFTA that is valid for five years. An EU-25/EFTA citizen who comes to Switzerland to be self-employed receives a residence permit B EU/EFTA that is valid for five years provided that he or she produces evidence to show that they do in fact exercise self-employed gainful employment.

As of 1st June 2016, the temporary provisions on free movement applicable to citizens of Bulgaria and Romania have ended. Due to the safeguard clause foreseen by the AFMP, the Federal Council reintroduced the quota system in 2017 and 2018. With the expiry of the fixed 10-year mandate at the end of May 2019, citizens of Bulgaria and Romania benefit fully from the free movement of persons under the same conditions as citizens of other EU-25 member states as of 1st June 2019.

Since 1st January 2017, citizens of Croatia have benefited from free movement of persons. During a transition phrase with several steps, special conditions apply to the admission of Croatian citizens who wish to exercise gainful employment in Switzerland (restrictions linked to the labour market and quotas). The transition phase will last until the end of 2023. The Federal Council may once again fix quotas up to 31st December 2026 in the event of activation of the safeguard clause.

In the case of employment in Switzerland, citizens of Croatia must have a work permit as of the first day of employment even if they wish to exercise gainful employment for a duration of less than three months. Citizens of Croatia who enter Switzerland with a view to exercise self-employed gainful employment shall obtain a EU/EFTA residence permit valid for five years provided they produce evidence to show that they do in fact exercise self-employed gainful employment.

In general, the admission of non-EU citizens to the labour market is only possible to a limited extent. They are subject to a labour force quota (limited number of permits) and Swiss citizens and those from EU/EFTA states benefit from domestic preference for recruitment. In addition to more restrictive entry conditions, the qualification level of the candidate from a non-EU country plays a key role. They may only obtain a residence permit if they are a confirmed specialist (with extraordinary skills in specific areas), if they are required to carry out roles of a high level of responsibility within an enterprise (executive function) or if they are part of the “other qualified workers” category.

Restrictions linked to permit type, nationality, migration reasons and residence objectives

The nationality of persons and the type of permit they hold play a key role in their mobility on the Swiss labour market. Mobility on the labour market means: change of employer, occupation, place of activity (canton) or type of activity (e.g. from employee to self-employed), without needing a new permit.

Regardless of the citizen’s nationality, the C permit or settlement permit gives foreign nationals almost the same rights as Swiss citizens (equal treatment), especially in the scope of work. Thus on the Swiss employment market, holders of a C permit are not subject to an authorisation procedure to exercise gainful employment whether as an employee or self-employed. Holders of this permit are free to select any employer and their place of residence (professional and geographical mobility).

Citizens of the EU-17, with the exception of Cyprus and Malta, and those from the EFTA countries receive a settlement permit after a regular and uninterrupted stay of 5 years. The C permit may also be issued after 5 years to citizens of the United States, Canada, Monaco, the Vatican, San Marino and Andorra who are subject to a special regulation.

For citizens of Cyprus, Malta, the EU-8, EU-2, Croatia and third countries, the regular and uninterrupted stay must be 10 years long (general rule) in order to obtain the settlement permit. However, the 10 year time-scale for obtaining a C permit may be reduced to 5 years if the person is married to a Swiss national or a C permit holder, if the person is considered as “well-integrated” or if the person is recognised as a refugee.

A settlement permit is issued for an unlimited duration and is checked every 5 years.

All EU and EFTA citizens admitted to the labour market and holding a B permit enjoy professional mobility which means that they can change job or occupation and exercise self-employed gainful employment. The authorisation is valid throughout the whole of Switzerland. The place of work and place of residence do not necessarily have to be in the same canton. For this group, the B permit is valid for 5 years. This authorisation mainly concerns workers who have an employment contract for a duration equal or greater than one year. In general, after the 5 years have passed, either the citizen renews their permit without any other formalities or they obtain a settlement permit (see paragraph above on obtaining a C permit).

Non-EU states

For citizens of non-EU countries, residence permits are issued for a specific purpose and may also be subject to other conditions. Consequently, a new request may be made if the purpose of the stay changes or if a condition set in the permit is no longer fulfilled (for example, change of sector of activity). This is also the case when changing to self-employed gainful employment in which a request must be made, except for family members of a Swiss national, of a EU/EFTA citizen or a C permit holder.

The initial duration of validity of a permit B  for non-EU citizens is limited to 1 year. This type of residence permit is renewed from year to year provided that there is no reason to prevent its renewal (e.g.: offences, reliance on social assistance, situation on the labour market).

Provisional admission or F permit is a measure that is ordered by the State Secretariat for Migrations (SEM) if deportation would be impossible, illicit or unreasonable. There are two types of provisional admission: provisional admission with recognition of refugee status and provisional admission without recognition of refugee status.

Refugees admitted provisionally are authorised to exercise gainful employment and to change job or occupation (without taking into consideration the labour market situation or situation of the economy). However, holders of a provisional permit without recognition of refugee status require a residence permit to exercise gainful employment. In both cases, access to the labour market for holders of this type of permit is dependent on the employer carrying out the applicable steps required.

Provisional admission may only be granted for a duration of 12 months and may be extended each time by 12 months.

Family reunification

Any EU/EFTA citizen who holds a residence permit or a short-term residence permit may be joined, regardless of their nationality, by their spouse or their registered partner, their offspring and those of their spouse (under the age of 21 or under their care), and their parents and grandparents and those of their spouse which are under their care.

Family members (the spouse and children under the age of 21 or under a person’s care) who have benefited from family reunification have, regardless of their nationality, the right to work or to become self-employed anywhere in Switzerland and in the economic sector of their choice.

In contrast, parents who have come to Switzerland by way of family reunification are not allowed to exercise gainful employment.

Transnational marriages

In the case of a transnational marriage, the foreign national marrying a Swiss national is entitled to a residence permit (B permit). The citizen may exercise gainful employment. In this case, the maximum quotas for foreign workers admitted each year do not apply; the citizen is included in the native workforce. After an uninterrupted stay for 5 years in Switzerland, they are able to obtain a settlement permit (C permit).