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Sanctions

Sanctions

Employers that violate compulsory requirements of the Posted Workers Act will be sanctioned. The purpose of these sanctions is to uphold Swiss working and pay conditions. Sanctions range from a warning or administrative fine to exclusion from the Swiss market.

Minor infractions such as non-compliance with the eight-day waiting period will result in a warning or administrative fine of up to CHF 5,000.

For violations concerning the minimum pay and working conditions, the employer can expect administrative fines of up to CHF 30,000 or exclusion from the Swiss market. Serious infractions may result in both an administrative fine and exclusion from the Swiss market. Wage dumping or failure to pay fines are considered as major infractions by the sanctioning authorities. Exclusion from the Swiss market means that the service provider is barred from working in Switzerland.

In the event of a repeat offence, such an exclusion may last up to five years. In addition, major infractions will be published in an openly accessible online list.

For violations of provisions contained in a generally applicable collective employment contract, administrative sanctions may be accompanied by civil sanctions, i.e. contractual penalties arising from the contract in question (see Art. 9, 12 (available in DE, FR, IT) and Art. 2(2quater) (available in DE, FR, IT) of the Posted Workers Act).

If a primary contractor uses subcontractors whose registered office is located outside Switzerland for work performed in Switzerland, the primary contractor must contractually oblige the subcontractor to comply with the Posted Workers Act (Art. 5). If the primary contractor fails to do so and the subcontractor violates the Posted Workers Act, the primary contractor may be prosecuted for the subcontractor's offence.

Regular workplace inspections in each canton ensure compliance with pay and working conditions.