Case 2: Employee works in more than one state
a) Main focus of work in Switzerland, which is the employee's domicile
Employees who usually practise their profession in two or more states are subject to the statutory regulations of the state in which they reside, provided that is where they perform a significant proportion (25% or more) of their work (principle of domicile).
Art. 13 (1a) of Regulation (EC) no. 883/2004
b) Employers based in Switzerland and employers based in an EU/EFTA state that is the domicile of the employee, provided the employee does not perform any significant portion of their work in the state of domicile.
Employees working both for companies based in Switzerland and for companies based in the employees' state of domicile are subject to Swiss statutory regulations provided that they do not perform a significant proportion of their work (25% or more) in their state of domicile (exception to domicile principle).
Art. 13 (1b) item iii of Regulation (EC) no. 883/2004
c) Several employers based in different EU/EFTA member states, employee's domicile is Switzerland
Employees residing in Switzerland and working for several companies based in at least two different member states are subject to Swiss statutory regulations.
Art. 13 (1b) item iv of Regulation (EC) no. 883/2004
If employees are already members of an AHV compensation scheme by virtue of being gainfully employed in Switzerland, that scheme is the first port of call for foreign employers for final determination of their scheme membership. Compensation schemes advise insured persons and their employers, issue any forms that may be required and, in the event that individuals require Swiss insurance, they make sure that they or their employers are assigned to another compensation scheme – if the schemes do not register them themselves.
If the employees are not already members of an AHV compensation scheme, the employers must join the cantonal compensation scheme of the canton in which the employees live.
Employees are insured for their principal occupation (in the foregoing example: for the 80% activity for company B) by the compulsory occupational-pension scheme. Foreign employers generally have the option of joining an existing pension scheme and insuring their employees with it (e.g. collective or joint arrangements), but they are also free to establish a pension scheme of their own. Otherwise they must join the National Substitute Pension Plan Foundation (Stiftung Auffangeinrichtung BVG). Employees can insure the income derived from a secondary occupation (in the foregoing example: for the 20% activity for company A) on a voluntary basis. Voluntary insurance cover can be obtained from the Stiftung Auffangeinrichtung BVG, or from the pension scheme providing compulsory insurance if its regulations permit.
If employees are already covered by accident insurance by virtue of being gainfully employed in Switzerland, and if their field of activity is the same, that accident insurer is the first port of call for foreign employers.
If employees are not already covered by accident insurance, then the companies covered by (Art. 66 of the Federal Act on Accident Insurance; German, French or Italian version)are obliged to join the Swiss National Accident Insurance Organisation (SUVA). Other companies must join a private accident-insurance scheme. If employers do not do so, the UVG compensation fund can designate a private accident insurer for them.
If an individual is also working for a Swiss employer, the foreign employer must join the family compensation fund of which the Swiss employer is a member. Otherwise it must join the family compensation fund of the canton in which the employee resides.
