Cross-border work in Switzerland and unemployment

A closer look at cross-border work in Switzerland

With a highly dynamic job market and very high salaries, Switzerland attracts many workers from all over the world. It is often described as a real expat paradise! Whether they are graduates or not, or even cross-border workers, many foreigners choose to work in Switzerland. The country offers them very favourable living and working conditions, as well as highly attractive salaries. The Swiss minimum wage is among the highest in Europe. It also has the advantage of sharing a border with France, making commuting and cross-border work possible.

What is a cross-border worker?

What is a cross-border worker? Under European Union law, a cross-border worker is simply defined as a worker who carries out their work in one country whilst residing in another. The cross-border worker commutes between their place of residence and their place of work, crossing a border in the process. Many French people have therefore chosen, rather than living in Switzerland, Luxembourg or Belgium, to work there whilst continuing to reside in France.

Where do cross-border workers live?

Working in Switzerland but living in France is possible, and it even has many advantages. In 2021, nearly 200,000 cross-border workers commuted to Switzerland every day to work. This figure continues to rise, as Switzerland attracts workers from France and elsewhere. With a truly attractive labour market and some of the highest salaries in the country, the French-speaking canton of Geneva, for example, attracts 106,000 workers residing in the Auvergne-Rhône-Alpes region…

Where do cross-border workers live? Which are the best towns to live in if you work in Switzerland? The towns near Geneva and Lausanne, around Lake Geneva, are very popular with cross-border workers. These include the towns of Annemasse, Thonon-les-Bains, Évian-les-Bains and Vétraz-Monthoux. These towns in Haute-Savoie are less than 30 minutes from Geneva! Annecy is also a very good option, situated less than an hour from Geneva. These towns also offer a very attractive living environment. Nestled in the heart of the mountains, they boast an exceptional natural setting, with pleasant summer and winter seasons, allowing residents to enjoy the pleasures of the mountains in particular. 

Pros and cons of a cross-border job in Switzerland

Working in Switzerland and living in the border region? Many French people have chosen this unique lifestyle, which offers numerous advantages:

• Higher wages than in France: wages in Switzerland are particularly high, especially compared to other European countries. Switzerland has the highest minimum wage in the world. In January 2023, the minimum wage in the canton of Geneva was increased to 4,368 Swiss francs gross, or 4,400 euros. A real advantage compared to French wages… However, you must take into account the costs associated with being a cross-border worker: transport, insurance, taxation, pensions (via the Swiss LPP)…
• Attractive jobs and sectors: the Swiss labour market is buoyant, with key sectors such as the chemical and pharmaceutical industries, watchmaking and finance showing particular dynamism.
• The world of work in Switzerland: you also need to be able to adapt to a different work culture. Punctuality and respect for the hierarchy are the norm in Switzerland, as are team spirit and a supportive atmosphere. Swiss companies often offer a high quality of life at work and a good work-life balance.
• The opportunity to live in France: As the cost of living in Switzerland is particularly high, cross-border workers enjoy more favourable conditions. For families, it also means the opportunity to send their children to school in France.
• Access to high-quality social security benefits: cross-border workers benefit from the Swiss social security system, which is both high-quality and efficient.

As for the drawbacks, these include, in particular, the highly competitive Swiss job market and the long commutes between home and work. Finally, it is also worth noting that the standard working week in Switzerland is not fixed; it can range from 45 to 50 hours. 

Furthermore, the lifestyle of a cross-border worker involves more administrative burdens. This is particularly true when it comes to pay. As Switzerland is not part of the eurozone, wages are paid monthly in Swiss francs. And, in order to receive their wages in Swiss francs, cross-border workers will need to open a bank account in Switzerland. Each month, they will therefore need to transfer their salary to a French account, which involves currency conversion… and therefore fees. There are solutions available for receiving your Swiss salary whilst paying as little in fees as possible. Using an online currency exchange service such as b-sharpe is one of them.

Another important point to note is that it is easier to dismiss an employee in Switzerland, even in the case of a permanent position (the equivalent of a permanent contract). In the rest of this article, we will provide you with all the information you need about cross-border unemployment in Switzerland.

Unemployment in Switzerland: the case of cross-border workers

As a cross-border worker or expatriate in Switzerland, you may well find yourself unemployed at some point: perhaps during a gap between jobs, at the end of a contract… or following redundancy. What happens when a cross-border worker loses their job? Here is the information you need to know and the steps to follow in the event of unemployment for cross-border workers.

Dismissal in Switzerland

How does the dismissal process work in Switzerland? It is important to note that employment law in Switzerland is more flexible than in France. Dismissal is possible without cause. A contract can be terminated in writing, but also verbally. Notice periods are short: 7 days during the probationary period, 1 month during the first year of the contract, 2 months for up to 9 years’ service, and 3 months thereafter. An employer may also dismiss an employee with immediate effect for serious misconduct. These are factors to bear in mind before taking up a cross-border job in Switzerland.

The unemployment rate in Switzerland

Switzerland has a particularly low unemployment rate and enjoys a favourable situation of near full employment. The rate currently stands at around 2% and is falling. This is its lowest level in 20 years. As a result, the country now has one of the most stable labour markets in Europe. 

How does unemployment benefit work for Swiss cross-border workers?

Many French people work in Switzerland. But when they lose their job or their contract ends, who pays the unemployment benefits for Swiss cross-border workers? In the event of unemployment following a contract in Switzerland (i.e. full unemployment), the employee relies on their country of residence for benefits. It is therefore the French system that provides benefits to employees in the event of unemployment following a cross-border job in Switzerland. Unemployment benefits claimed through France Travail (formerly Pôle Emploi) as a cross-border worker will therefore be the same as those the worker would have received whilst working in France (provided the necessary conditions are met). Please note that in the event of short-time working, it is Switzerland that will pay the employee’s benefits. 

Unemployment rules in France, in 2024

Since February 2023, the rules governing unemployment insurance in France have changed. Consequently, to be eligible for the return-to-work allowance (or ARE), the minimum period of employment is set at 6 months (i.e. 130 days or 910 hours). The duration of benefits cannot be less than 182 days (i.e. approximately 6 months). As for the calculation of the benefit amount, this remains the same.

Unemployment benefit is calculated on the basis of a reference salary determined by France Travail (the body responsible for administering unemployment benefits in France, formerly known as Pôle Emploi). This reference salary corresponds to the total remuneration from the employment contract(s) during the reference period used to calculate the duration of entitlement. The amount of the ARE is subject to a minimum and a maximum limit. The benefit received cannot be less than a minimum of €31.97, and cannot exceed a maximum of 75% of the daily wage.

What steps should a cross-border worker take if they become unemployed?

How do you go about claiming French unemployment benefits after working in Switzerland? As it is the country of residence that pays the benefits, the employee must apply in France, through the France Travail agency. Just as when losing a job in France, they must register online from the very first day following the end of their Swiss contract. They can then claim their unemployment benefits. However, in Switzerland, they will need to request the PD U1 form, or U1 document, from a cantonal unemployment fund. This essential document details the periods of insurance and employment (whether as an employee or self-employed) that are taken into account when calculating unemployment benefits.

Cross-border unemployment: what benefits are available?

According to Unedic (the organisation that administers unemployment insurance in France, in cooperation with France Travail), cross-border workers generally receive higher benefits than claimants who have lost their jobs in France. This seems rather logical, however: wages in Switzerland are significantly higher than those in France. In 2020, 80,000 unemployed people received benefits under cross-border entitlement. So, how is unemployment benefit calculated for a cross-border worker? The amount of the benefit is 57% of the average of the last 24 or 36 months’ gross Swiss salary, converted into euros.

Cross-border unemployment: is reform on the horizon in the coming years?

In France, the situation of unemployed people who have held cross-border jobs in Switzerland, as well as in Belgium or Luxembourg, is a subject of debate and controversy. This is particularly the case in the context of any reforms to unemployment insurance that the French government might undertake. This is because wages are higher in Switzerland, whilst, at the same time, the conditions for dismissal are more flexible. Compensation for these workers represents a significant cost. It is estimated to account for up to €800 million in annual deficit for the unemployment insurance scheme. This cost is rising sharply: in less than 10 years, between 2012 and 2020, the cost of compensating cross-border unemployed workers rose from €540 million to €920 million, according to Unedic, which manages unemployment insurance in France. Against this backdrop, we can expect negotiations to resume on reforming the current benefits system, which stipulates that an unemployed cross-border worker should receive benefits under the system of their country of residence, rather than that of the country where they worked and paid contributions.

To calculate the amount of your unemployment benefit as a cross-border worker, use a currency converter. The Swiss franc–euro converter developed by the Swiss company b-sharpe offers transparent and reliable currency exchange services, with ease. Carry out your currency exchanges online via b-sharpe to benefit from fair exchange rates that update in real time.