ARTICLE
11 November 2024

Case Study: Internal Company Transfer From Malaysia To Zurich

C
CONVINUS

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CONVINUS is since 2002 the leading specialist in the field of cross-border employment, international employee assignments, and is the only global mobility provider in Switzerland with a comprehensive range of services. Benefit from our unique combination of professionalism and expert know-how as well as the high level of commitment and involvement for clients.
The 'Maschinenbau AG' group based in Zurich implemented a new operational IT system in the spring, which was developed by the team in Malaysia.
Switzerland Employment and HR

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The 'Maschinenbau AG' group based in Zurich implemented a new operational IT system in the spring, which was developed by the team in Malaysia. Three Malaysian team members are now urgently needed on site to harmonize the new network infrastructure with the machines used by the Swiss subsidiary for production. The work includes not only the adjustment and maintenance of the machines with regard to the new system, but also the training of the Swiss staff in this context. As the employees of Maschinenbau AG have to continue working during the day, the Malaysian engineers are also required to work in the evening, at night and at weekends for up to 5 weeks.

Questions:

  1. Work permit: Who must do what to allow the engineers to work in Switzerland?
  2. What other aspects need to be considered?

Solutions approaches:

  • Work permit: For a short-term assignment in Switzerland, employees require a short-term residence permit with gainful employment - the so-called 120-day permit - for the actual duration of the project. The application must be submitted in advance to the relevant cantonal labour market authority and takes approx. 4 to 6 weeks to be fully approved by the State Secretariat for Migration (SEM). Thanks to the Malaysian citizenship, employees do not require any further documentation (such as the Schengen visa type C) other than the assurance of a residence permit (second and final decision) for the purpose of gainful employment in order to enter Switzerland. Work may only begin once this authorization has been issued.
  • Working time authorization: The Malaysian employees do not intend to disturb the daily business, especially the production of Maschinenbau AG, therefore they will work at night and / or on weekends. The time between 6 a.m. and 11 p.m. (Monday to Saturday) is considered working time without a permit. Working at night and on Sundays is generally prohibited. For compelling or urgent reasons, a so-called 'working time permit' can be applied for to work at night or on Sundays.

For work in Zurich from Monday to Saturday, employees also require a working time permit for work at night. If they also work on Sundays, a working time permit must also be approved by the Zurich Labour Inspectorate for work on Sundays.

  • Remuneration: The foreign employer must pay the service providers the calculated Swiss minimum wage. In practice, the minimum wage must be calculated using the national wage calculator (middle quartile for a work permit, https://entsendung.admin.ch/Lohnrechner/home ). A wage supplement of 25% to 50% is to be expected for work at night or at weekends.
  • Labour market inspections: In Switzerland, 50% of companies are inspected by the labour market authority. As part of these company inspections, work permits, wage documents, work reports, expense receipts and accounting documents are checked for the purpose of expense allowance transactions. Furthermore, the presentation of a certificate of social security coverage (Certificate of Coverage for third-country nationals or A1 certificate for EU/EFTA citizens) is always a must for compliance with Swiss law on assignment.

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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