ARTICLE
15 March 2024

Admission To The Employment Market - With A Focus On Priority For Nationals

Swiss nationals and persons from EU/EFTA member states enjoy priority over persons from third countries when it comes to admission to the employment market...
Switzerland Employment and HR

Admission to the employment market - with a focus on priority for nationals

Swiss nationals and persons from EU/EFTA member states enjoy priority over persons from third countries when it comes to admission to the employment market (so-called "Inländervorrang" or "Principle of priority for nationals"). This is because the Agreement on the Free Movement of Persons gives EU/EFTA nationals easier access to the Swiss employment market, regardless of their level of qualification.

However, persons from third countries are only admitted if certain admission criteria are met, such as safeguarding Switzerland's overall economic interests, compliance with maximum numbers (quotas) and salary and working conditions that are customary for the location and industry, as well as the existence of certain professional qualifications. In addition, the principle of priority for nationals must be respected and a job registration requirement for certain professions must be taken into account. Priority for nationals and the obligation to register jobs are explained in more detail below.

The principle of priority for nationals

Third-country nationals can only be admitted to the domestic employment market if no persons from Switzerland or from the EU/EFTA countries who benefit from the priority for nationals derived from the Agreement on the Free Movement of Persons are available. The following persons enjoy this priority:

  • Swiss nationals;
  • Foreign nationals with a permanent residence permit (C permit);
  • Foreign nationals with a residence permit who are entitled to pursue gainful employment (B permit, including recognized refugees);
  • temporarily admitted persons (F permit);
  • Persons who have been granted temporary protection and who have a permit to take up gainful employment (S permit); and
  • all persons from countries with which a freedom of movement agreement has been concluded (L and B or C permit).

The admission of third-country nationals to the employment market is also limited by quotas. The quotas are set annually by the Federal Council. However, the quotas for B residence permits and L short-term residence permits for employed third-country nationals have never been fully exhausted in recent years.

An exception to the priority for nationals may be granted to foreign nationals with a Swiss university degree if their employment is of great scientific or economic interest to Switzerland. After completing their education or training at a recognized Swiss university, third-country nationals can thus be admitted to Switzerland on a temporary basis for six months in order to find a suitable job. In practice, this exception mainly benefits graduates of so-called STEM subjects (mathematics, information, natural sciences and technology). Another exception applies in case of an inter-group transfer of senior management staff and essential specialists.

It should be noted that the principle of priority for nationals only applies when a permit for gainful employment is issued for the first time. However, the principle of priority of nationals does not apply when changing jobs and professions or when extending a permit. On the other hand, priority for nationals has to be respected when changing from a short-term residence permit to a residence permit.

Employer obligations and procedures:

In order for a person from a third country to be hired, the employer must provide evidence of comprehensive and unsuccessful search efforts for suitable workers with priority. The employer must therefore provide credible evidence of search efforts that demonstrate genuine efforts to recruit domestic applicants or applicants from EU/EFTA states in terms of timing, geographical scope and content. Third-country nationals should therefore only be contacted after unsuccessful search efforts.

The vacancies to be filled must always be reported to the regional employment centers (RAV). An advertisement in the European Employment System (EURES) is also required.

Furthermore, the authorities must be shown that the search via the industry-specific recruitment channels (such as trade journals, job exchanges, online portals and private placement or social media etc.) and common job platforms has been ineffective. Proof can be provided in the form of newspaper advertisements, confirmations from recruitment agencies or other documents. The job offer must have been advertised for at least a few weeks (a minimum of 6 to 8 weeks, but two to three months is recommended).

It must then be demonstrated to the relevant authorities that none of the other applicants are as suitable for the position as the desired third-country national. An overview of all job applicants and the qualifications they lack for the position can be helpful in this regard. In special cases, the authorities may also request proof of special recruitment efforts.

The job registration requirement

In February 2014, Swiss voters approved the "Against Mass Immigration" initiative. As a result, parliament decided to introduce a job registration requirement in occupations with high unemployment, with the aim of making better use of the potential of the domestic workforce. This job registration requirement in accordance with Art. 21a of the Foreign Nationals and Integration Act (FNIA) is also a prerequisite for the admission of third-country nationals to the employment market. Accordingly, employers must report job vacancies if the national unemployment rate for the relevant occupational group, field of activity or economic region reaches or exceeds 5%. The State Secretariat for Economic Affairs (SECO) draws up an annual list of occupations subject to the reporting obligation (List available here). When applying for a work permit in occupations with an above-average unemployment rate, employers must enclose proof that the job registration requirement has been met.

The job notification must include the occupation sought, the job including special requirements, the place of work, the workload, the date the job starts, whether the employment relationship is temporary or permanent, the contact address and the name of the company.

For five working days, only the public employment service and the jobseekers registered with it have access to these registered vacancies. If the employer receives candidate dossiers from the employment agency, the employer informs the employment agency which candidates it considers suitable and has, in accordance with the law, invited to an interview or aptitude test, whether it has hired a candidate and whether the position is still open. Employers are not required to give reasons for classifying jobseekers as unsuitable in the context of the job registration obligation.

A position may only be advertised elsewhere after a five-day retention period following publication. In addition, available candidates who are not registered with the RAV or who have responded to standard advertisements may only be employed after this blocking period.

The number of occupations subject to the job registration requirement is trending downwards and in 2024, only 3.2% of the workforce will still be working in occupations subject to the job registration requirement. The significance of the job registration requirement is therefore currently limited.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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