Switzerland-France: Teleworking: headache for the social contributions of cross-border commuters

The health crisis has caused massive recourse to teleworking. For cross-border workers and their employers, this new situation has created a legal headache. Indeed, the social charges of a cross-border worker working part-time in Switzerland and exercising at least 25% of his activity in France must be paid in full in… France. Including for its activity in Switzerland. As soon as the 25% threshold is reached, affiliation to social security schemes reverts to the employee’s country of residence instead of that of the employer.

During the first wave of the pandemic in March, the authorities of the two countries reached an agreement: cross-border workers can carry out their activity from their country of residence without affecting their tax or insurance regimes. social, even beyond 25% of teleworking. First scheduled until the end of August, this device was extended until December 31, 2020. The Lake Geneva Council, a cross-border body chaired by the Vaudois Pascal Broulis, seized Bern and Paris to request a new extension until December 30 June 2021. Without a new agreement, employers who keep their cross-border employees teleworking will have to pay social charges in France.

“With more than 125,000 cross-border workers working in the Lake Geneva basin, the economic stakes are high. Businesses need a clear regulatory framework to define their strategy. The current crisis is hitting the economy hard. An extension of the specific device linked
to this particular situation would be such as to avoid further destabilization, ”the Lake Geneva Council declared on Friday.
The 25% threshold has been criticized by several specialists in labor law as its effective application is complicated. Not to mention the financial repercussions for the Swiss employer. Employer contributions are much higher in France compared to Switzerland.

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